- Daily Zen
Healthcare service provider market set to see tremendous growth fueled by post COVID-19 scenario.
The Global Home Health Care Providers Market has witnessed continuous growth in the past few years and is projected to grow even further during the next five years, according to market reports.
The global home healthcare market size was $281.8 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 7.9% from 2020 to 2027. An aging population around the world, better healthcare prolonging life expectancy, and patient preference for value-based healthcare are attributed as reasons for the expected growth.
The World Health Organization puts the aging population (65 and above) number at 703 million in 2019. This number is expected to double to 1.5 billion by 2050.
This means that the need for healthcare, medicines, related gadgets and healthcare workers to provide related services will also see concomitant growth. There will be a rising demand for specialist care, geriatric care in specialist facilities along with a demand for home care nurses and attendants. The Bureau of Labor Statistics states that demand for home health and personal healthcare aides, which include personal care assistants and home health aides, nurses, and therapists will give rise to more than 4 million jobs in the home healthcare sector. This will outpace the jobs creation in the related healthcare sector.
The healthcare market’s major growth will be seen in the gadgets and services sector. The major part, that is, nearly 80 percent of the growth in healthcare, was seen in healthcare service provision in 2019.
The equipment segment saw the maximum growth in the therapeutic segment in 2019. An aging population suffering from chronic ailments like respiratory distress, renal incontinence, or similar diseases, need home care, and related devices to ease the situation. Homecare traditionally proves less costly in the long term for the government and other paying agencies than a long stay in a care home or hospital. Hence, equipment demand for making that stay easier also rises.
According to the University of California, SF, around 750,000 patients per year in the U.S., and 2 million patients globally are affected by the end-stage renal disease (ESRD). Cardiovascular diseases, diabetes, and similar ailments that need monitoring also will see a demand.
Studies say the advancement in telemedicine and the increasing use of technology to keep track of ailments through connected devices like smartphones and the Internet of Things (IoT) will also fuel the growth of therapeutic devices and related home service gadgets and personnel. This will enable the provision of sensitive, low-cost, rapid, and connected diagnostics.
Another factor feeling growth is the value-based homecare coverage provided by almost all governments. In the U.S., Medicare reimbursements are highly favorable in providing value-based healthcare for improved patient outcomes at a low cost. Thus, in-home care is a preferred choice for treatment. Medicare spending accounts for more than 40% of home health expenditures.
Medicaid payments are divided into three main categories: the traditional home health benefit (mandatory), the personal healthcare option, or one can opt for home and community-based waivers. Collectively, these three home healthcare service categories hold a small share of total Medicaid, according to reports.
In Europe, the government provides partial payments to cover for home care. One is free to choose the type of provider and healthcare. Their healthcare also has social care factored into it; hence the payment is made under different categories and eligibility.
Germany has the largest healthcare market share in Europe. The increasing market share of healthcare services is because of increasing expenditure on quality healthcare service at home.
The Asia Pacific region will witness a high growth rate in the next five years, due to a growing aging population and availability of personnel at economical costs. Lifestyle diseases like cardio vascular and diabetes are expected to grow with lifestyle changes. Japan will witness the highest growth with its aging population reaching 40 percent of the total population by 2030.
The Covid-19 virus has changed the way people now approach personal healthcare. Many health experts insist that the virus is here to stay and seeing the vulnerability of an aging population to the virus and added fear of comorbidities, which lower recovery chances; the demand for home care is bound to increase in this scenario.
The aging population will not opt to go to hospitals or care homes where the chances of contracting the disease are high and recovery chances very low.
Considering the risks involved in caring for such patients and the higher need for distancing and PPE, there is surely going to be a higher demand for home care aides, personnel, and gadgets.