This document provides an overview of the elderly healthcare industry, with a focus on the growing home health care sector. It notes that the home health care industry is currently in a growth phase and is expected to experience significant expansion driven by an aging population, rising healthcare costs, and a desire for seniors to age in place. The global home health care market was valued at $244 billion in 2015 and is projected to grow at a 7.8% annual rate due to these factors. The expanding elderly population and movement towards advanced home healthcare technologies are fueling growth in the North American home health software and services market at a rate of 13-15% per year.

1. Elderly Healthcare
with a focus on home health care
Industry Report & Forecast
Lawrence Del Altman, Madison Gore,
Nysia Fulmore & Geena Toscano

2. Industry Overview

3. History of Elderly
Healthcare ● Picked up in the 1960’s & 1970’s
● Bigger need due to:
○ Government support--Medicare
○ Advent of the National Institute on aging
○ Number of older Americans (Baby
Boomers 40’s-50’s)
○ Improved life expectancy
● As they reach 65 the population is
projected to reach 87.3 million

5. ● US revenues for elder care service providers are
expected to grow 6.3 percent per year,
approaching $400 billion in 2018.
● Home health care services will remain the
second largest segment and the fastest
growing revenue reached $75 Billion in 2014.
● Skilled nursing facilities will see the slowest
gains. Growth in nonprofit providers will
outpace the dominant for-profit segment.
Market Leader

6. Products & Services
● First popular for younger family members to take care of senior family members rather than
nursing homes or health care services
○ Difficult to burden families with that responsibility
● 90% of seniors expressed a desire to remain in their homes as long as possible
● Innovation: Advances in home healthcare technology
○ Wearable sensors, wireless communications & alert systems
● Popular today: Home Health Care
● It is less stressful, affordable & more convenient for seniors

7. Home Health Care Industry Lifecycle
● Growth phase =
sales begin to take
off rapidly
● Growth in senior
population
● Best time to be a
part of the industry
We are
here!

9. Current Market Size
● Global home healthcare
market size was valued at
USD 244.4 billion (2015)
● Expected to grow at a
CAGR of 7.8% over the
forecast period
● Rising treatment cost is a
huge concern
● Organizations are striving
to curb increasing health
cost

10. USA vs. Global Market Size
The expanding aging population, growing burden to cut healthcare cost, moving trends
towards adopting advanced technologies, and OASIS documentation are driving the North
American home healthcare software and services market.
Home Healthcare Software and
Services Market
CAGR % (2013-2018)
13%-15%
12%-14%
2%-14%
5%-18%
12%-14%
13%-15%
13%-15%
12%-14%

11. Driving Forces &
Trends
Growing geriatric population is one of the key
driver for the lucrative growth of market. As per
the World Health Organization’s estimates, the
geriatric population is anticipated to be more than
double from 7.0% to 16.0% in 2050. These,
demographic group is prone to chronic diseases
which require long term care and approximately
70.0% patients in these settings are geriatric.
Hence, home healthcare offers best possible
alternative providing affordable quality care.

12. Hospital Visit $3,250 per day
Home Care $50 per day
$3,200 difference per day
KEY SUCCESS FACTORS

13. Major Threats & Disruptions
● If Trump repeals the Affordable Care Act
● Medicare issued more rate cuts in home
health care than any other health sector
● No increases in reimbursements since 2009
● Future policy changes to Medicare & Medicaid
○ Significantly cut funding
○ Not reimbursed → patients will not receive
services → loss of income

15. Competitive Rivalry
Threat of New Entrants
Buyer Power
Threat of Substitutes
Supplier Power
HIGH
HIGH
HIGH
LOW
LOW

16. ● Reduction of
reimbursements
● Competition
○ Better practices
● Hiring nurses & aids to
service more people
● Nurses w/ palliative
training
● Agencies can acquire
similar businesses
● High insurance costs
● Quality of care
○ Not regulated
● Low operating costs
● High demand w/ aging
population
● Reimbursements from
○ Insurance companies
○ Publicly funded
healthcare systems

17. Capital Requirements
The establishment and maintenance of hospitals and other
such settings are capital intensive in nature and entail
large investments in terms of capital and operational
expenses. Therefore, providers with the help of mergers
and acquisitions are now entering the rapidly growing
home healthcare market in an attempt to capitalize on the
available opportunities and contain costs. Moreover, these
companies engage extensively in strategic initiatives to
enhance regional presence. For example, in 2014, National
Nursing & Rehab acquired Home Health Services to
expand its reach into the Texas metropolitan area.
Non-Medical $78,000 - $102,000 (initial investment)
Medical $78,000 - $130,000 (initial investment)

18. Customers
Specialist MD
Primary Care MD
Wellness Center
Insurance Company
Distribution
Channels

19. Sources
● http://web.a.ebscohost.com.login.library.coastal.edu:2048/ehost/pdfviewer/pdfviewer?vid=29&sid=41454a7c-9a09-439c-8ce2-3a529
ef7bde0%40sessionmgr4009
● https://www.franchisehelp.com/industry-reports/senior-care-industry-report/
● http://cdn2.hubspot.net/hub/236457/file-669783136-pdf/Home_Care_Providers_in_the_US_IBIS_Report.pdf?t=1397590185000
● https://www.cnbc.com/2015/10/12/top-vcs-target-7-trillion-senior-care-market.html
● http://bi.galegroup.com/global/article/GALE|LEMMQC901014406/a0af58a37c5efdcc0fec72404b0c3a3c?u=coastcui_kimbel
● http://smallbusiness.chron.com/swot-analysis-assisted-living-company-79057.html
● http://www.merckmanuals.com/home/older-people%E2%80%99s-health-issues/provision-of-care-to-older-people/set tings-for-care
● http://www.grandviewresearch.com/industry-analysis/home-healthcare-industry
● http://icd-10online.com/wp-content/uploads/2016/08/EL-Home-Health-White-Paper-web.pdf
● http://www.prnewswire.com/news-releases/home-healthcare-market---global-industry-analysis-size-share-trends-and-forecast-
2014-a-2022-300435421.html