U.S. Home Healthcare Services Market Growth Outlook | Meticulous Research®

Market Overview

The U.S. home healthcare services market is expanding rapidly, reflecting the growing importance of affordable, high-quality care delivered outside hospital walls. Valued at USD 111.2 billion in 2024, the market is expected to reach USD 120.1 billion in 2025 and continue climbing to nearly USD 317.9 billion by 2035. This growth, driven by a CAGR of 10.2% between 2025 and 2035, highlights a fundamental shift in how Americans access healthcare.

One of the main drivers of this change is the aging population. By 2050, more than 88 million Americans will be 65 years or older. This demographic trend is fueling demand for services such as skilled nursing, rehabilitation, and chronic disease management delivered in the comfort of patients' homes. At the same time, both Medicare and Medicaid increasingly support home healthcare, recognizing its cost efficiency compared to institutional care.

In September 2024, for example, the Centers for Medicare & Medicaid Services (CMS) announced new reimbursement rates for home healthcare under the Patient-Driven Groupings Model. The 2025 update included a 3.2% inflation adjustment, encouraging greater adoption of home-based services, particularly in skilled nursing and therapy. Such policy moves are reshaping the industry and pushing providers to scale their offerings.

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Technology Transforming Home Healthcare

The U.S. home healthcare industry is also undergoing a technological revolution. Digital health platforms, remote patient monitoring, and artificial intelligence are now central to care delivery. These tools help providers manage more complex cases, reduce hospital readmissions, and improve patient outcomes. Telehealth integration, in particular, has become a critical component, allowing patients to consult with physicians and specialists without leaving their homes.

For providers, technology investments are not just about improving care; they are also key to operational efficiency. Companies that deploy AI-driven care coordination tools can manage larger patient populations without compromising on quality. This shift is making home healthcare a sustainable model for both patients and payers.

Skilled Nursing Services Driving Market Growth

Skilled nursing services represent the largest share of the U.S. home healthcare market, accounting for about 40% of revenues in 2024. Their role is expected to grow even further during the forecast period. Services such as wound care, medication management, chronic disease monitoring, and post-acute recovery are increasingly in demand.

The growing prevalence of chronic illnesses explains this trend. Currently, more than 190 million Americans live with at least one chronic condition, and many require ongoing medical attention. Skilled nurses, supported by remote monitoring tools, are uniquely positioned to deliver this care at home. Medicare data further confirms that patients receiving skilled home healthcare have significantly lower readmission rates, underlining the effectiveness of this approach.

Major players such as Amedisys, Optum Home Health, and BrightSpring Health Services are expanding their skilled nursing capacity through acquisitions and partnerships. By integrating telehealth and monitoring platforms, they are able to improve efficiency and extend their reach, even in underserved regions.

Regional Insights: Southeast Leads Growth

The Southeast region is expected to see the fastest growth in the U.S. home healthcare services market over the next decade. Florida, Texas, and North Carolina are at the center of this expansion due to rapidly aging populations and supportive policies. Florida, for instance, already has more than 4.6 million residents aged 65 and older, accounting for 21% of its population in 2025. The state's high Medicare Advantage enrollment and Medicaid waiver programs encourage home and community-based services.

Texas is investing heavily in rural access and telehealth, bridging the gap for patients in less accessible areas. North Carolina, meanwhile, is promoting community care models to reduce hospital reliance. California and New York are also key growth markets, with California's Silicon Valley driving innovation in digital health platforms and New York integrating home healthcare into managed long-term care systems.

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Why is Home Healthcare Becoming the Preferred Choice for Patients and Providers?

Home healthcare offers a unique combination of affordability, convenience, and effectiveness. For patients, receiving care at home reduces stress, lowers infection risks, and provides comfort during recovery. For healthcare systems and payers, home care is significantly less expensive than hospital or nursing facility stays. Medicare and Medicaid programs increasingly support home healthcare because it delivers better outcomes at lower costs, particularly for patients with chronic conditions or post-acute needs. This alignment of patient satisfaction and financial efficiency is why the sector continues to gain momentum.

Challenges Facing the Industry

Despite its strong growth, the U.S. home healthcare services market faces notable challenges. Workforce shortages remain a major issue, especially in skilled nursing and therapy roles. Turnover rates hover around 70% annually, putting pressure on providers to recruit, train, and retain qualified staff. Regulatory complexity, including CMS reporting requirements and state licensing variations, adds to operational hurdles. Reimbursement pressures from managed care organizations further strain provider margins.

However, many of these challenges are being addressed through innovation. AI-driven tools and remote monitoring platforms help reduce staff burdens and improve care efficiency. At the same time, value-based care models create opportunities for providers to link reimbursements to outcomes, rewarding high-quality care instead of volume.

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Competitive Landscape and Future Outlook

The market is highly competitive, with major players such as Amedisys, Optum (LHC Group), BrightSpring Health Services, BAYADA Home Healthcare, AccentCare, Enhabit Home Health & Hospice, and Addus HomeCare leading the industry. These companies are investing in acquisitions, workforce development, and digital platforms to strengthen their market positions. Partnerships with health systems, technology companies, and Medicare Advantage plans are also becoming increasingly common, allowing for integrated care models that combine clinical expertise with advanced digital tools.

Looking ahead, the U.S. home healthcare services market is poised for sustained growth. With demographic shifts, supportive government policies, and rapid technological adoption, the industry is set to play a central role in the country's healthcare system. By 2035, home healthcare will not only be a cost-saving alternative to institutional care but also a mainstream solution for managing chronic conditions, supporting aging populations, and delivering personalized, patient-centered care.

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