A market research report released recently by Aritzon Advisory and Intelligence, “Nursing Care Market in U.S.- Industry Outlook and Forecast 2020-2025,” reveals that nursing care in our country is forecasted to increase at approximately a compounded annual growth rate (CAGR) of 6%, contributing more than $175 billion in incremental revenue during 2019-2025. Fueling the growth and increased need for more nursing services are several factors including: the prevalence of chronic disorders (such as heart problems, Alzheimer’s, dementia, and mental stress) as well as the overall rise in the geriatric population in the United States.
According to the World Health Organization (WHO), 60% to 85% of the population worldwide does not engage in healthy activities, making physical inactivity the fourth-leading risk factor for global mortality. This sedentary lifestyle is expected to increase in the future as increasingly more jobs require sitting behind a desk, cites the report. Additionally, by 2030, the elderly will represent more than 20% of the population share.
Demand for Hospice, Home Health Care on the Rise
The report also indicates that the rise in the geriatric population, coupled with increasing chronic diseases and age-associated diseases that require the need for 24-hour medical attention, is expected to boost the hospice segment, which often offers programs at home but can also be provided in free-standing facilities, nursing homes or within hospitals. According to a report published by the National Hospice and Palliative Care Organization (NHPCO) last year, a total of 1.5 million Medicare beneficiaries enrolled for hospice care in the year 2017 for one day or more. Out of this, 1.1 million Medicare beneficiaries died while enrolled in hospice care; of this group, 48.2% of deaths occurred at home, where many patients want to be at end of life.
Home health care demand is also expected to rise as more patients choose to receive medical treatment at home. In addition, telemedicine and other advanced technologies have facilitated at-home treatment and care.
Government Support for Nursing Driving Market Revenue
U.S. government support for the nursing care market is also fueling revenue in the sector. For example, cites the NHCPO’s report, Medicare spent in 2016 about $79 billion on skilled nursing facilities and home health services combined. This represents more than 20% of all long-term service and supported spending. The expectation is that this type of government support will continue and further support the nursing care market and patient needs.
More than 70% of people being admitted to nursing facilities are women, according to the market research. Almost two-thirds of the paid home care users and unpaid care recipients are also women. The demand is expected to increase further among women due to their improved savings, increased employability, high literacy, the surge in divorce cases, and an increase in chronic diseases. The elderly population should be able to choose the most appropriate level of care along with their doctor and family. Whether it’s in a facility, or at home, there will continue to be a driving need for quality care as the population count over 65 years old increases in the U.S.
Manchester Specialty Programs continues to monitor trends in home care and allied health, in order to better serve our agents/brokers and their clients. Manchester offers a totally integrated business insurance solution around the specific needs of Home Care, Allied Health and Human/Social Services organizations fundamental to healthy communities. For more information about our programs, and how you can assist your clients to obtain the coverages they require to adequately address their risks, please contact us at 855.972.9399.