Number of pages: 100 | Report Format: PDF | Published date: April 17, 2023
Historical Years – 2021 | Base Year – 2022 | Forecasted Years – 2023-2031
Report Attribute |
Details |
Market Size Value in 2022 |
US$ 735.40 million |
Market Size Value in 2031 |
US$ 1,329.42 million |
CAGR |
6.8% |
Base Year For Estimation |
2022 |
Forecast Period |
2023 to 2031 |
Historical Year |
2021 |
Segments Covered |
Services, Age, Conditions, and Region |
Regional Scope |
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa |
According to the deep-dive market assessment study by Growth Plus Reports, the global post-acute care market was valued at US$ 735.40 million in 2022 and is expected to register a revenue CAGR of 6.8% to reach US$ 1,329.42 million by 2031.
Post-acute Care Market Fundamentals
Post-acute care refers to a range of medical and rehabilitation services that a patient receives after being discharged from the hospital. Post-acute care aims to help patients recover from an illness, injury, or surgery and provide ongoing support and medical treatment as needed. Post-acute care includes skilled nursing care, rehabilitation therapy, home health care, and long-term care in a nursing home or other specialized facility. The specific type of post-acute care needed will depend on the individual patient’s medical condition, level of functional independence, and personal preferences.
[97687]
Post-acute Care Market Dynamics
The aging population is a major driver of the post-acute care market revenue, as older adults are more likely to require medical and rehabilitation services after hospitalization. The prevalence of chronic diseases, such as diabetes, heart disease, and cancer, is increasing, driving demand for post-acute care services to manage these conditions. Patients are increasingly choosing home-based care over institutional care. This has led to the development of new technologies and services to support home-based care, such as remote patient monitoring and telehealth. Post-acute care providers are shifting towards more personalized and patient-centered care. This includes customized rehabilitation plans, home health care services catering to individual preferences, and technology to monitor better and manage patient care.
Advancements in technology, such as remote patient monitoring, telehealth, and electronic health records, are improving the quality of care and reducing costs in the post-acute care market. For instance, in October 2022, PointClickCare launched Virtual Health, a telemedicine service for skilled nursing facilities that offer 24/7 access to hospitalists. Virtual Health is being implemented in more than half of U.S. states with its partner, Sound Physicians, a physician partner to hospitals, health plans, physician groups, and post-acute providers. Payers and providers seek to reduce healthcare spending while maintaining the quality of care. This has led to new payment models and reimbursement structures, such as bundled payments and accountable care organizations, which aim to align incentives and promote value-based care. The COVID-19 pandemic has highlighted the importance of post-acute care services in managing patients’ health and recovery, which is also propelling the growth of the post-acute care market revenue.
However, the post-acute care market’s significant challenges are the lack of reimbursement and funding options. The reimbursement rates for post-acute care services are generally lower, along with the lack of qualified healthcare professionals to provide post-acute care services. This is particularly true in rural areas, where it can be challenging to attract and retain healthcare professionals, thus hindering the growth of the post-acute care market.
Post-acute Care Market Ecosystem
The global post-acute care market is analyzed from four perspectives: services, age, conditions, and region.
Post-acute Care Market by Services
[76568]
Based on the services, the global post-acute care market is segmented into skilled nursing facilities, inpatient rehabilitation facilities, long-term care hospitals, and home health agencies.
The skilled nursing facilities segment accounted for the largest post-acute care market share in 2022. The aging of the baby boomer generation has significantly increased the number of elderly individuals who require post-acute care. Skilled nursing facilities are well-equipped to handle the high demand for such care, as they offer a wide range of services and are often located near hospitals, propelling segmental revenue growth. Skilled nursing facilities provide comprehensive care, including medical care, rehabilitation services, and social support. This is important for patients who require a range of services to recover from an illness or injury. Medicare and other insurance plans often cover the cost of skilled nursing facility care, making it an affordable option for many patients. This is particularly important for elderly patients who may have limited financial resources. Moreover, the major players are investing in new product launches to improve skilled nursing services. For instance, in October 2022, Allina Health and Flare Capital Partners launched Inbound Health. This company enables health systems and plans to offer hospital-at-home and skilled nursing-at-home programs. These innovative new care models create the ability to care for patients requiring facility-level acute or post-acute care in their homes, thereby improving patient access, satisfaction, and outcomes while lowering the total cost of care. Skilled nursing facilities work closely with hospitals and other healthcare providers to coordinate patient care. This helps to ensure that patients receive the care they need to recover and transition back to their homes as quickly as possible.
The home health agencies segment accounted for a considerable revenue share of the post-acute care market. The growing aging population has increased the demand for healthcare services, particularly among seniors who prefer to receive care in their own homes. As a result, there has been a significant increase in demand for home health services in recent years, contributing to the growth of this segment’s revenue. Advancements in healthcare technology have enabled patients to receive high-quality care at home, including remote monitoring, telemedicine, and other advanced medical services. These technologies have increased the effectiveness and efficiency of home health services, allowing patients to receive care that was not possible in the past. Home health services, such as skilled nursing and inpatient rehabilitation facilities, are generally less expensive than other post-acute care services. This makes home health services an attractive option for patients who want to receive care at home without incurring high healthcare costs. Moreover, home health agencies provide a continuum of care that allows patients to receive ongoing care and support as they transition from hospital to home. This can improve patient outcomes and reduce hospital readmissions.
Post-acute Care Market by Age
Based on age, the global post-acute care market is segmented into the elderly, adults, and others.
The elderly segment dominated the post-acute care market with a prominent revenue share. The global population is aging, and this demographic shift is driving the demand for healthcare services, particularly among seniors who require post-acute care services. According to the WHO, the number of people aged 60 and older is expected to double from 900 million in 2015 to 2 billion by 2050. This significant increase in the elderly population will likely result in a corresponding rise in the demand for post-acute care services worldwide. Elderly patients are more likely to require post-acute care services due to the higher incidence of chronic health conditions and disabilities among this population. Post-acute care services, such as skilled nursing facilities, home health agencies, and inpatient rehabilitation facilities, are designed to meet the needs of patients who require ongoing care and support after an acute illness or injury. Changes in healthcare policy and reimbursement have also contributed to the revenue growth of the post-acute care market worldwide. Governments and insurance companies increasingly recognize the value of post-acute care services in improving patient outcomes and reducing healthcare costs. As a result, they are expanding coverage for these services.
Post-acute Care Market by Conditions
Based on the conditions, the global post-acute care market is segmented into amputations, wound management, brain injury and spinal cord injury, neurological disorders, and others.
The brain and spinal cord injuries segment accounted for a significant post-acute care market share in 2022. Brain and spinal cord injuries are serious medical conditions often requiring long-term care and rehabilitation. Patients with these conditions require specialized post-acute care services, including physical therapy, occupational therapy, speech therapy, and other forms of rehabilitation. Advances in medical technology have improved the ability of healthcare providers to diagnose and treat brain injury and spinal cord injuries, increasing the survival rate of patients with these conditions. However, many patients require ongoing care and support after their initial treatment, which has contributed to the revenue growth of this segment. Brain injury and spinal cord injuries are increasing worldwide, partly due to an aging population and increased motor vehicle accidents and sports-related injuries. This will continue to drive revenue demand for the brain and spinal cord injuries segment.
Post-acute Care Market by Region
Based on region, the global post-acute care market is segmented into North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa.
North America accounts for the largest post-acute care market revenue share. The aging population in North America is increasing, increasing the demand for post-acute care services. According to the United States Census Bureau, the number of Americans aged 65 and older is expected to nearly double from 52 million in 2018 to 95 million by 2060. This demographic shift is driving the growth of the post-acute care market in North America. Advancements in medical technology have improved the ability of healthcare providers to diagnose and treat patients with complex medical conditions, including those that require post-acute care services. This has expanded the reach of post-acute care services and improved patient outcomes, driving demand in the market. Healthcare costs in North America are rising, and as a result, there is a growing emphasis on reducing costs while improving patient outcomes.
Post-acute care services are often less expensive than inpatient care and can help reduce healthcare costs while improving patient outcomes. Moreover, the government and non-government organizations in the region are investing in improving post-acute care. For instance, in October 2022, American Heart Association launched a two-year initiative to expand and enhance post-acute stroke care across Montana, Nebraska, and North Dakota, giving all patients the best chance at independent life after stroke. For instance, the Leona M. and Harry B. Helmsley Charitable Trust granted this initiative a $1.5 million grant.
Post-acute Care Competitive Landscape
The prominent players operating in the global post-acute care market are:
Post-acute Care Strategic Developments
Post-acute care refers to a range of medical and rehabilitation services that a patient receives after being discharged from an acute care hospital.
The expected size of the global post-acute care market in 2031 is US$ 1,329.42 million.
Asia Pacific is a key growth region due to the surge in post-acute care industry trends observed in China, Japan, and the Indian subcontinent.
The expected revenue CAGR of the global post-acute care market is 6.8% during the forecast period.
The lack of reimbursement, funding options, and skilled professionals are major restricting factors of the post-acute care market.
*Insights on financial performance are subject to the availability of information in the public domain