by The U.S. post-acute care market comprises rehabilitation services, including skilled nursing facilities, home health agencies, long-term care hospitals, and inpatient rehabilitation facilities. Post-acute care services offer continued care after a hospitalization, which may include physical, occupational, or speech therapy, skilled nursing care, and other medical services to help patients recover from an illness or injury. The growing geriatric population, the rise in chronic diseases, and the number of patients requiring extended care after hospitalization are some of the key factors fueling the demand for post-acute care services in the country.
The U.S. post-acute care market is estimated to be valued at US$ 614.2 billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in U.S. post-acute care are Kindred Healthcare, Encompass Health Corporation, HCR ManorCare, Brookdale Senior Living, Genesis HealthCare, Amedisys, Inc., LHC Group, Inc., Select Medical Holdings Corporation, Vitas Healthcare, Post Acute Medical, LLC, SavaSeniorCare Administrative Services LLC, LifeCare Health Partners, Extendicare, Ensign Group, Inc., Sunrise Senior Living, LLC, and BayADA Home Health Care. The major players are focusing on mergers and acquisitions to expand their service offerings and geographic presence across the country.
The rising geriatric population suffering from chronic conditions is a key factor fueling the demand for post-acute care services. As per estimates, around 60% of the U.S. population will have at least one chronic condition by 2025. This rising disease prevalence is anticipated to increase the patient volume in post-acute care facilities over the forecast period.
The U.S. post-acute care market share is witnessing increasing consolidation, with major players focusing on mergers and acquisitions to gain market share. Further, with reimbursement changes and value-based purchasing gaining prominence, larger stakeholders have strategic and operational advantages to succeed in the evolving landscape through economies of scale and service diversification.
Market Key Trends
One of the key trends shaping the U.S. post-acute care market is the shift towards value-based and patient-centric care models. Providers are focusing on preventive care, care coordination, and population health management to reduce readmissions, lower costs, and improve patient outcomes. This is driving increased collaboration between acute and post-acute care providers through partnerships, data sharing, and innovative payment models. Further, with growing emphasis on home-based care, major players are developing mobile health and telehealth capabilities to extend services to rural areas and provide continuous remote monitoring of patients. The adoption of digital health technologies coupled with big data analytics is helping post-acute care organizations deliver more personalized and proactive care.
Porter’s Analysis
Threat of new entrants: The U.S. post-acute care market has moderate threat of new entrants due to the presence of established players and requirement of resources.
Bargaining power of buyers: There exists low bargaining power of buyers in the market as post-acute care services are a necessity and substitutes are limited.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitute equipment and service providers in the market.
Threat of new substitutes: Threat of new substitutes is low as post-acute care provides specialized services that cannot be replaced.
Competitive rivalry: The market witnesses high competitive rivalry among the leading players.
Geographical regions with market concentration
Around 60% of the total U.S. post-acute care market value is concentrated in the southern and western regions of the country. States like California, Texas, and Florida have higher concentration of providers, patients and spending on post-acute care services compared to other regions.
Fastest-growing geographical region
The midwestern region of the U.S. is expected to witness the fastest value growth during the forecast period. States like Illinois, Ohio, and Michigan are expanding their healthcare infrastructure at a rapid pace. Initiatives to shift care from hospitals to community-based facilities will drive the demand for post-acute care centers in this region.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Vaagisha Singh
Vaagisha brings over three years of expertise as a content editor in the market research domain. Originally a creative writer, she discovered her passion for editing, combining her flair for writing with a meticulous eye for detail. Her ability to craft and refine compelling content makes her an invaluable asset in delivering polished and engaging write-ups. LinkedIn
