The U.S. post-acute care market is comprised of skilled nursing facilities, inpatient rehabilitation facilities, long-term care hospitals, and home health agencies that provide medical care, social services, and personal care to patients after a hospital stay. Post-acute care focuses on restoring well-being and functional ability so that patients can return home or transition to less intensive care settings. These services aid in the recovery process for patients with complex medical conditions, chronic illnesses, disabilities, or needing assistance with daily living activities.

The U.S. post-acute care market is estimated to be valued at US$ 614.2 Bn in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the 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, BAYADA Home Health Care. The increasing aging population suffering from chronic diseases drives the demand for post-acute care services. Moreover, the preference for home healthcare over expensive nursing facilities also contributes to market growth.

The rapidly growing geriatric population prone to chronic illnesses and disabilities is creating a substantial need for post-acute care services in the country. As per the U.S. Census Bureau, by 2030, approximately 72.1 million Americans will be aged 65 years and older. This aging cohort requires long-term medical assistance and personal care assistance with daily activities. The increased life expectancy has resulted in more patients developing complex conditions that further the recurrence of hospitalization, thereby augmenting the demand.

Globally, the U.S. dominates the post-acute care market size due to the higher per capita healthcare spending and increasing acceptance of long-term care services. Furthermore, favorable government policies to shift from institutional long-term care settings to home and community-based care are expected to drive the global expansion of the post-acute care market during the forecast period.

Market drivers

The major driver contributing to the growth of the U.S. post-acute care market is the increasing aging population. As per estimates, the geriatric population aged 65 years and above is expected to double from 52 million to over 95 million between 2015 and 2060. This aged group is more prone to chronic medical ailments like diabetes, cancer, cardiovascular diseases, neurological disorders, etc. requiring long-term care and medical supervision. Hence, the demand for post-acute care facilities and services witness significant upsurge to manage this patient pool with complex needs.

Impact of geopolitical situation on the growth of the U.S. Post-acute Care Market

The current geopolitical conflicts are negatively impacting the growth of the U.S. post-acute care market. Russia's invasion of Ukraine has exacerbated ongoing supply chain issues, raising costs for healthcare providers. Facility construction materials like steel and medical devices and equipment face shortages and price increases due to trade disruptions. The unstable economy is also weighing on consumer spending power, reducing demand for elective and long-term post-acute care services. While demand remains high for essential care, providers must offset higher operating costs somehow to maintain service quality. Some are passing costs to patients, risking affordability issues, while others are scaling back expansion plans or resorting to layoffs. With an aging population needing more care, instability abroad threatens to slow the development of adequate local capacity. Going forward, diversifying supply chains domestically and with reliable trade partners can help cushion against geopolitical shocks. Utilizing telehealth and remote monitoring more extensively could also reduce dependency on physical infrastructure development. Maintaining flexible budgets that allow reallocating resources in response to global conditions will likewise help the industry weather uncertainties

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