US Post-Acute Care Market By Services (Inpatient Rehabilitation, Skilled Nursing), Age Group (Elderly, Adult), Conditions (Wound Management, Amputations), & Region for 2024-2031

US Post-Acute Care Market Valuation - 2024-2031

Rising chronic diseases and complex medical conditions are propelling the adoption of post-acute care. Advances in medical technology and home care solutions are enhancing the effectiveness and accessibility of post-acute care, this is driving the market size surpass USD 394.01 Million valued in 2024 to reach a valuation of around USD 531.29 Million by 2031.

Additionally, value-based care models and reimbursement reforms are pushing for better post-acute care outcomes and efficiency. The growing focus on patient-centered care and recovery is leading to an expansion of services and care options, this is enabling the market to grow at a CAGR of 4.2% from 2024 to 2031.

US Post-Acute Care Market: Definition/ Overview

Post-acute care in the U.S. refers to a continuum of medical and therapeutic services provided to patients following an acute illness or injury, aimed at facilitating recovery and improving functional outcomes. This level of care bridges the gap between hospital discharge and full recovery, encompassing a range of services such as skilled nursing care, rehabilitation, home health care, and long-term acute care hospitals. It focuses on managing complex medical conditions, promoting recovery, and supporting the transition to home or a less intensive care setting.

In practice, post-acute care is crucial for patients who require extended care beyond what is provided in acute care settings. For instance, individuals recovering from major surgeries, strokes, or severe injuries benefit from specialized rehabilitation services to regain mobility and independence. Home health care services offer ongoing medical and personal support in a patient's own home, while skilled nursing facilities provide comprehensive care for those needing prolonged medical attention. This sector is integral to improving patient outcomes and reducing hospital readmissions by ensuring a continuum of care.

How will Rising Prevalence of Chronic Diseases Drive the Market for US Post-Acute Care?

The aging population in the United States has been a significant driver of the post-acute care market. As the baby boomer generation continues to reach retirement age, the demand for specialized healthcare services, including skilled nursing facilities, home health agencies, and rehabilitation centers, has surged. According to the U.S. Census Bureau, in 2021, the population aged 65 and older reached 54.1 million, accounting for 16.5% of the total U.S. population. This demographic shift has created a growing need for comprehensive post-acute care solutions to address the unique healthcare requirements of the elderly.

The rising prevalence of chronic diseases and the associated need for long-term care have also been driving the growth of the U.S. Post-Acute Care Market. Conditions such as diabetes, heart disease, and respiratory disorders often require ongoing treatment and rehabilitation, leading to a greater reliance on post-acute care providers. The Centers for Disease Control and Prevention (CDC) reported that in 2021, 6 in 10 adults in the United States had a chronic disease, highlighting the substantial demand for comprehensive healthcare services.

The shift towards value-based healthcare and the emphasis on reducing hospital readmissions have been instrumental in driving the growth of the U.S. Post-Acute Care Market. Payers, including government and private insurers, are increasingly incentivizing healthcare providers to deliver high-quality, cost-effective care, leading to a greater focus on post-acute care services that can help reduce hospital stays and prevent unnecessary readmissions. The Centers for Medicare and Medicaid Services (CMS) reported that in 2022, the national 30-day hospital readmission rate was 15.2%, underscoring the importance of effective post-acute care coordination in improving patient outcomes.

Will Funding and Reimbursement Issues of US Post-Acute Care Restrain Its Market Growth?

Post-acute care providers often encounter difficulties with funding and reimbursement. The transition from fee-for-service to value-based care models has introduced uncertainties in reimbursement rates and payment structures. Inadequate reimbursement levels for certain services can limit the financial viability of post-acute care facilities and affect their ability to invest in necessary resources and technologies.

A persistent challenge in the post-acute care sector is the shortage of qualified healthcare professionals. Recruiting and retaining skilled nurses, therapists, and other care staff is increasingly difficult, impacting the quality of care and operational efficiency. Staffing shortages can lead to increased workloads, burnout among existing staff, and potential declines in patient care quality.

Effective post-acute care requires seamless integration and coordination with acute care settings and other healthcare providers. Fragmented care systems and inadequate communication between hospitals, rehabilitation centers, and home health services can lead to disjointed care, affecting patient outcomes and increasing the risk of readmissions.

Category-Wise Acumens

Will Skilled Nursing Facilities (SNFs) Segment Dominate in the US Post-Acute Care Market?

Skilled nursing facilities (SNFs) continue to dominate the US post-acute care market due to their comprehensive care offerings. According to the Centers for Medicare & Medicaid Services (CMS), as of 2023, over 15,000 SNFs provide essential services, including skilled nursing care and rehabilitation, to millions of patients annually. Recent industry news highlights that major players like Brookdale Senior Living have reported expanding their SNF services to meet the growing demand for post-acute care, further reinforcing the sector's dominance in the market.

A significant portion of post-acute care spending is allocated to skilled nursing, reflecting its critical role in the continuum of care. The National Investment Center for Seniors Housing & Care (NIC) noted in a 2024 report that skilled nursing accounted for approximately 47% of all post-acute care expenditures in the US. Key players such as Genesis HealthCare have been actively investing in enhancing their skilled nursing facilities, underscoring their pivotal role in the sector and ensuring high-quality care for patients recovering from acute conditions.

How will Elderly Segment Fare in US Post-Acute Care Market?

The elderly segment dominates the US post-acute care market due to the significant and growing healthcare needs of this demographic. According to the U.S. Census Bureau, by 2030, approximately 73 million Americans will be aged 65 or older, making up 20% of the population. In response to this trend, major providers such as Brookdale Senior Living have been expanding their services to cater specifically to the elderly, highlighting the increasing focus on this age group in post-acute care.

In recent years, the elderly population's demand for post-acute care services has led to a substantial increase in healthcare expenditures. The Centers for Medicare & Medicaid Services (CMS) reported in 2023 that nearly 70% of Medicare spending is directed towards services for beneficiaries aged 65 and older. Leading companies, such as Genesis HealthCare, have been investing heavily in specialized programs for elderly patients, reflecting their strategic focus on this growing segment of the market.

Country/Region-wise Acumens

Will Advances in Medical Technology in Drive US Post-Acute Care Market Growth?

The US post-acute care market, which includes services provided after initial hospital discharge, such as skilled nursing facilities, home health care, and rehabilitation, has seen significant growth and dominance in the United States. Advances in medical technology and treatments have led to more complex and prolonged recoveries, increasing the need for specialized post-acute care services.

The aging population in the US requires more post-acute care services. As the Baby Boomer generation continues to age, there is an increasing demand for care services that can manage chronic conditions, rehabilitation needs, and recovery from surgeries.

In terms of expenditure, the US stands out significantly in the post-acute care sector. The Centers for Medicare & Medicaid Services (CMS) reported in 2023 that the US spent approximately USD 60 Billion on post-acute care services, highlighting the country's substantial investment in this area. Major players like Genesis HealthCare have been actively investing in expanding their service offerings and upgrading their facilities, underscoring their role in the substantial market expenditure.

Competitive Landscape

The US post-acute care market is a dynamic and competitive space, characterized by a diverse range of players vying for market share. These players are on the run for solidifying their presence through the adoption of strategic plans such as collaborations, mergers, acquisitions, and political support.

The organizations are focusing on innovating their product line to serve the vast population in diverse regions. Some of the prominent players operating in the US post-acute care market include:

• Brookdale Senior Living, Inc.
• Amedisys, Inc.
• LHC Group, Inc.
• Encompass Health Corporation
• Genesis HealthCare
• Kindred Healthcare (part of LifePoint Health)
• Select Medical Holdings Corporation
• Visiting Angels
• Comfort Keepers
• Addus HomeCare Corporation
• The W Group
• CareOne
• Saber Healthcare Group
• Nexion Health
• HCR ManorCare (part of ProMedica)
• PruittHealth
• Sunrise Senior Living
• Amedisys Inc.
• Interim HealthCare
• VITAS Healthcare

Latest Developments

• In September 2024, Brookdale Senior Living launched a new integrated care program in collaboration with a leading telehealth provider, aiming to enhance remote patient monitoring and improve outcomes for elderly patients in post-acute care settings.
• In July 2024, Amedisys and Kindred at Home finalized a merger to expand their home healthcare services and enhance post-acute care offerings, aiming to provide a more comprehensive continuum of care for patients transitioning from hospital to home.

US Post-Acute Care Market, By Category

• Services:
• Inpatient Rehabilitation
• Skilled Nursing
• Home Health Agencies
• Hospice Care
• Long-term Care Hospitals
• Age Group:
• Elderly
• Adult
• Child
• Conditions:
• Wound Management
• Amputations
• Region:
• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa