U.S. Home Healthcare Services Market to Reach USD 317.9 Billion by 2035, Says Meticulous Research®

Market Growth Driven by Aging Population, Cost-Effectiveness of Home-Based Care, Medicare and Medicaid Reimbursement Policies, and Technological Transformation Through Remote Patient Monitoring

REDDING, Calif., June 17, 2025 /PRNewswire/ -- The U.S. home healthcare services market was valued at USD 111.2 billion in 2024 and is estimated to grow at a CAGR of 10.2% from 2025 to 2035, reaching USD 317.9 billion by 2035, according to a new market research report titled "U.S. Home Healthcare Services Market: Size & Forecast by Service Type (Skilled Nursing, Rehabilitation, Aide Services), Payer (Medicare, Medicaid, Commercial), Patient Group & Region – Forecast and Analysis to 2035", published by Meticulous Research®.

The U.S. home healthcare services industry continues to expand rapidly as healthcare providers, payers, and patients increasingly recognize the cost-effectiveness and clinical benefits of home-based care delivery. With an aging population of over 88 million Americans expected to be 65+ by 2050, the demand for skilled nursing, rehabilitation, and specialized home healthcare services is driving unprecedented market growth. Medicare and Medicaid reimbursement policies increasingly favor home healthcare as a cost-effective alternative to institutional care.

In September 2024, the Centers for Medicare & Medicaid Services (CMS) announced updated reimbursement rates for home healthcare services under the Patient-Driven Groupings Model (PDGM), applying a 3.2% market basket inflation factor for 2025. This policy change is expected to drive further adoption of home healthcare services across skilled nursing, therapy, and chronic care management segments.

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Key Market Drivers and Trends

The industry is experiencing significant technological transformation through remote patient monitoring, artificial intelligence-driven care coordination, and telehealth integration. Leading home healthcare providers are investing heavily in digital health platforms to improve patient outcomes, reduce readmission rates, and enhance operational efficiency. These technological advances are enabling providers to serve more complex patient populations while maintaining high-quality care standards and achieving better financial performance.

Major home healthcare providers such as Amedisys, Optum Home Health, and BrightSpring Health Services are actively expanding and restructuring their service capabilities through mergers, acquisitions, and divestitures in 2024 and 2025 to meet growing demand for skilled nursing and home healthcare services.

Market Segmentation Insights

Skilled Nursing Services Segment Projected to Showcase the Largest Growth

Skilled nursing services are projected to show significant growth during the forecast period, representing approximately 40% of the total home healthcare services market in the U.S. These services include wound care management, medication administration, chronic disease monitoring, and post-acute care following hospital discharge. The complexity of care provided in home settings continues to increase as healthcare systems push for earlier hospital discharges and value-based care models emphasize outcomes over volume.

The growth in skilled nursing services is attributed to rising chronic disease prevalence, with over 190 million Americans living with at least one chronic condition. This demographic requires ongoing medical supervision and clinical intervention that skilled nurses can effectively provide in the home setting. Medicare data shows that beneficiaries receiving skilled home health services have significantly lower readmission rates compared to those without home healthcare support.

Medicare Segment Expected to Experience Higher Growth

Based on payer type, the Medicare segment is expected to grow at a higher CAGR through 2035, driven by demographic trends and policy support for home-based care. The expansion of Medicare Advantage plans and favorable reimbursement policies are creating sustainable pathways for home healthcare service growth.

Geriatric Patients Segment Dominates Market

The geriatric segment (65+ years) dominates with over 65% market share, reflecting the aging U.S. population and chronic disease prevalence in older adults. This demographic shift is creating unprecedented demand for home-based care services as patients prefer aging-in-place alternatives to institutional care.

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Regional Market Analysis

Southeast Region to Exhibit the Highest Growth

The Southeast region is estimated to witness significant growth during the forecast period, driven by rapid aging population, Medicare Advantage penetration, and favorable regulatory environments. States like Florida, Texas, and North Carolina are experiencing unprecedented demand for home healthcare services as retiree populations continue to grow and healthcare systems prioritize community-based care models.

Florida leads the region with approximately 4.6 million residents aged 65 and older, representing about 21% of the state's population in 2025. The state's home healthcare market is mainly driven by Medicare Advantage plan growth and state Medicaid waiver programs that prioritize home and community-based services. Texas follows closely with significant investments in rural home healthcare access and telehealth infrastructure.

California demonstrates strong growth in technology-enabled home healthcare services, with Silicon Valley companies developing innovative care delivery platforms, while New York focuses on integrating home healthcare with managed long-term care programs and dual-eligible special needs plans.

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Market Challenges and Opportunities

The U.S. home healthcare services industry faces significant workforce shortages, particularly in nursing and therapy disciplines, with turnover rates averaging around 70% annually, posing ongoing challenges to care delivery and access. Regulatory compliance requirements under CMS quality reporting programs and state licensing variations create operational complexity and increased administrative costs.

Despite these constraints, the market offers substantial growth opportunities through value-based care contracts, technology-enabled service delivery, and expansion into underserved geographic markets. The adoption of remote patient monitoring and artificial intelligence is helping providers manage larger patient populations while improving clinical outcomes and reducing costs. Government initiatives supporting aging-in-place policies and Medicare Advantage growth provide sustainable reimbursement pathways for innovative service delivery models.

Competitive Landscape

Major players like Amedisys, Optum (LHC Group), BrightSpring Health Services, and Encompass Health Corporation compete strongly in the U.S. home healthcare services industry. These companies focus on strategic acquisitions, technology investments, and value-based care partnerships to strengthen their market positions and expand service capabilities.

Key players operating in the U.S. home healthcare services industry include Amedisys, Inc. (with over 519 care centers across 38 states and the District of Columbia), Optum (LHC Group), BrightSpring Health Services, Enhabit Home Health & Hospice, AccentCare, Inc., Addus HomeCare Corporation, Bayada Home Health Care, Elara Caring, and Gentiva, among others.

Leading providers are forming strategic partnerships with health systems, Medicare Advantage plans, and technology companies to create integrated care delivery models. These collaborations enable better care coordination, improved patient outcomes, and sustainable financial performance under value-based payment arrangements. The market is also witnessing increased private equity investment in home healthcare platforms that can scale operations and integrate advanced technologies.

Recent Industry Developments

Companies across the home healthcare services sector continue to invest heavily in workforce development, clinical quality programs, and operational efficiency initiatives. Major players are focusing on technology integration, value-based care partnerships, and expansion into underserved markets to meet growing demand from aging populations and changing healthcare delivery preferences.

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About Meticulous Research®

Meticulous Research® was founded in 2010 and incorporated as Meticulous Market Research Pvt. Ltd. in 2013 as a private limited company under the Companies Act, 1956. Since its incorporation, the company has become the leading provider of premium market intelligence, strategic insights, and consulting services to serve clients across 11 major industries globally. The company serves various clients across academics and business leaders from startups to Fortune 500 companies.

Meticulous Research® offers comprehensive market research reports, custom research, and consulting services. Our research studies help clients make informed business decisions and understand emerging business trends and opportunities. The company's expertise spans across various domains, enabling it to provide accurate insights and strategic recommendations to its clients. Meticulous Research® is committed to providing accurate and granular research reports to the global business community.

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