The U.S. Post-acute Care Market Poised to Surpass $350 Billion by 2025 Driven by Rising Incidences of Chronic Conditions
The U.S. post-acute care market consists of skilled nursing facilities, home health agencies, long-term care hospitals and inpatient rehabilitation facilities that provide medical care services after hospitalization for illnesses, injuries, surgical procedures or other conditions. Post-acute care aims to maximize a patient’s function and quality of life through comprehensive evaluation and individualized treatment with the goal of returning them to their prior living situation. The growing prevalence of chronic illnesses like diabetes, cardiovascular diseases, cancer and cognitive impairments has fueled demand for these specialized services from an aging population in need of long-term management and support.
The Global U.S. Post-acute Care Market is estimated to be valued at US$ 407.89 billion in 2025 and is expected to exhibit a CAGR of 7.3% over the forecast period 2025 to 2032.Key TakeawaysKey players operating in the U.S. Post-acute Care Market are Kindred Healthcare, Amedisys Inc., LHC Group and Encompass Health Corp.
U.S. Post-acute Care Market Demand is major providers handle a significant share of post-hospital treatment through their nationwide networks of clinics, hospitals and home health agencies. The demand for post-acute services has grown exponentially due to the surging geriatric patient pool, shorten hospitalization times and shift towards non-acute care facilities for continued recovery and convalescence. Technological innovations centered around telehealth, remote patient monitoring and digital therapies have allowed post-acute care to be delivered more effectively outside of traditional brick-and-mortar settings.
Market Trends
The increasing shift towards value-based care is driving greater collaboration between acute care providers and post-acute networks to improve coordination, reduce unnecessary readmissions and rein in costs. Government efforts to shift the payment paradigm also incentivizes this transition to alternative payment models. The COVID-19 pandemic further accelerated the adoption of telehealth and digital innovations, transforming post-hospital care delivery through virtual consultations, remote patient monitoring and digital therapeutics. These trends are expected to permanently change the post-acute landscape going forward.
Market Opportunities
Growing focus on wellness, preventative care and population health management is opening up opportunities for new bundled payment programs and integrated care models between different provider settings. Telehealth and remote patient monitoring present a major opportunity to expand access to post-acute services in rural/underserved areas. Investment in digital health solutions centered around chronic disease management, medication adherence, remote therapy and virtual specialty care can help address ongoing care needs more cost-effectively.
Impact of COVID-19 on the U.S. Post-acute Care Market
The COVID-19 pandemic has had a major impact on the U.S. post-acute care market. During the initial months of the pandemic in 2020, occupancy rates in skilled nursing facilities declined sharply as patients deferred elective procedures and rehab admissions due to virus concerns. This led to steep revenue losses for post-acute care providers at a time when costs were rising to cope with the pandemic. Various restrictions were also placed on visitations to limit virus spread, which impacted mental health and recovery outcomes for patients. However, since mid-2020 some sectors have started recovering faster than expected. The demand for long-term care surged due to needs of recovering COVID-19 patients with long-term health issues. Rehab facilities witnessed higher demand for respiratory therapy and recovery services. To manage the virus risk, providers upgraded facilities with advanced ventilation and isolation systems. Telehealth saw rapid uptake for remote consultations and care transitions. Looking ahead, the focus is on workforce retention, expansion of home-based and telehealth options, and value-based payment models to improve quality and financial sustainability in the post-pandemic environment.
Geographical Regions with High Post-acute Care Spending
In terms of value, the Middle Atlantic and Pacific divisions of the United States account for the highest post-acute care spending. Within these divisions, states like New York, California, Pennsylvania and New Jersey have the highest Medicaid spending on post-acute care annually. This is due to factors like their large elderly population bases, higher health costs, and concentration of major hospitals and long-term care facilities that generate significant rehab demand. The density of healthcare infrastructure also makes these regions major providers and recipients of post-acute care services in the country.Fastest Growing Region for Post-acute Care The South Atlantic division has emerged as the fastest growing region in the U.S. for post-acute care in recent years. States such as Florida, Georgia and North Carolina within this division have seen a sharp rise in spending driven by their expanding elderly demographics. Warmer weather also makes these locations popular for retirement communities with higherlong-term care needs. Meanwhile, health systems in the South Atlantic are increasingly focused on comprehensive care models and network development with post-acute partners to manage high-cost populations and transitions. This positions the region well for continued growth.
Get more insights on, U.S. Post-acute Care Market
Get This Report in English Language: U.S. Post-acute Care Market
Get This Report in Japanese Language: 米国のポストアキュートケア市場
Get This Report in Korean Language: 미국 급성기 이후 치료 시장
About Author:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)
