Home Health Sector Due Diligence
Medicare defines home health care as medically necessary, part-time or intermittent, skilled care (nursing, physical therapy, continuing occupational therapy, and speech-language therapy) that is provided under the care of a physician. Clinical care provided in the home is supported by home medical equipment (HME) service companies, which deliver, install, and assess appropriateness of equipment in the home, as well as personal care services which focus on routine daily activities.
The home health and related medical equipment service sector has seen dramatic growth in recent years, due to demographic factors such as the aging population of baby boomers and increasing chronic health conditions among the elderly. This upswing has been amplified by the trend in favor of value-based purchasing, along with consumer preferences for care in the home.
The domestic home health market is projected to outpace growth of all other health-care types, including hospital and physician care. According to projections issued by the Office of the Actuary in the Center for Medicare & Medicaid Services, this rise will average 7% annually through 2028. The U.S. Department of Labor is forecasting a 36% growth rate in home health employment by the year 2028, adding an estimated 1 million jobs in the process—a projection that could easily be outpaced, given demographic and coverage trends.
Contacts
- Related Industries