Emerging Trends in Home Health and Home Care for 2024
Continued market growth, labor shortages, and diversification at the forefront of what we expect to see in 2024
THE VBP Blog
January 18, 2024 – The home health and home care industry is changing, and these changes are being driven by evolving societal needs, technological advancements, and a shifting healthcare model. While our last blog in this mini-series broke down the importance of in-home care, this blog aims to explore in more detail two key trends: the anticipated growth in the sector and the rise of patient empowerment. As we explore these pivotal trends that we expect to see in home care and home health care in 2024, we’ll uncover the potential impact on the industry and those it serves, and how value-based payments can help.
Anticipated Growth in Home Health and Home Care
The home health and home care industries are poised for significant growth in 2024. In fact, the home health care industry in the U.S. is expected to grow from $94 billion in 2022 to $153 billion by 2029.
This growth is being driven by several key factors. Demographically, an aging population will create a higher demand for in-home care services. By 2030, 76 million Americans will be over the age of 65 and account for 20% of the population. And there’s an increasing preference for aging in place, with over 77% of adults preferring to age at home. That reflects a broader cultural shift towards valuing autonomy and personalized care in one’s own environment. Seniors want to maintain their independence and quality of life at home for as long as possible, and that is completely understandable.
Technological advancements are another reason for continued growth in the home care and home health sectors. Innovations in telehealth, remote monitoring, and medical devices are making it possible to deliver more complex and effective care at home. This has led to an influx of hospital at home programs as technologies improve accessibility, making it easier for individuals to receive the services they need without the inconvenience or stress of frequent hospital visits. It also allows providers to monitor individuals more closely and respond promptly to any changes in their condition.
While the “typical” home health user used to be someone recovering from a knee or hip surgery, that has changed with technological advances. Providers are now able to care for sicker and more medically complex individuals, allowing them the opportunity to recover or live comfortably at home. According to a recent Home Health Chartbook from the Research Institute for Home Care, over 76% of Medicare home health users have three or more chronic conditions. Almost 25% need assistance with two or more activities of daily living, and over 37% present with a serious mental illness. Technology has allowed this shift to occur safely, which benefits consumers in many ways.
Economic and policy factors will also play a crucial role in the growth of home health and home care in 2024. Increasing healthcare costs are prompting a necessity for more cost-effective care models, which can be driven by value-based payment models. Home health and home care have emerged as viable solutions as these models have been shown to reduce healthcare spending by minimizing the need for expensive hospital stays and long-term care facilities. Additionally, policy changes and increased funding for home-based care are making these services more accessible to a broader range of consumers, including those who might not have previously been able to afford them. The Home Health Value-Based Purchasing (HHVBP) Model was also expanded nationwide in 2021 after years of success reducing healthcare costs while improving health outcomes. This model is estimated to generate over $6 billion in Medicare savings in 10 years and is proof that incentivizing providers to focus on patient outcomes and quality of care over quantity of services provided can not only improve health outcomes, but also significantly reduce costs. This is important when we consider how inflation and other factors have driven up healthcare costs in recent years.
While it’s clear that the expansion of at-home care will benefit consumers, there could be an added benefit that is not clear on the surface. The escalating demand for home care services may heighten competition among providers. As more organizations vie for their share of the growing market, providers will be compelled to differentiate themselves and this can lead to higher levels of innovation. Providers will need to adopt advanced technologies, develop unique care models, and enhance their service offerings to stand out amongst their peers and deliver the outcomes necessary to obtain maximum payments through VBP models. This competitive environment should improve quality of care and foster a culture of continuous improvement that will provide more sophisticated, efficient, and personalized care options.
Rise of Patient Empowerment in At-Home Care
In 2024 we know we are going to witness a growth in home health and home care. But we also expect to see an unprecedented rise in patient empowerment within the at-home care sector. This will be a great movement as empowered consumers are more involved in their care decisions, which can lead to improved health outcomes and satisfaction. However, it’s important to note that this shift is not just a change in behavior. This is a massive transformation in the healthcare delivery model and can make it more patient-centered and collaborative. So, why are we expecting to see more consumer empowerment in 2024? Let’s explore in more detail!
One of main reasons for the increase in empowerment is the development and expansion of health technology apps and platforms. These tools provide individuals with easy access to their health information, allowing them to monitor their conditions, track progress, and even adjust their care plans in real-time. Think patient portals, but with more functionality and interactive features. One example of this is telehealth apps that enable virtual consultations. This reduces the need for physical visits while ensuring continuous care. How many times do we put off going to the doctor for lack of convenience or availability? New health technology platforms and apps remove this barrier and allow individuals to take the reins on their care from the comfort of home. Another example is wearable devices that monitor vital signs and activity levels. This provides individuals with immediate feedback about their health and encourages proactive management of their conditions if they notice any issues.
It is important to note that providers will need to adjust to this. As individuals advocate for themselves and become more active participants in their care, treatments will need to become more tailored to their individual needs. This doesn’t just stop at the door of one doctor. Care will need to be whole-person and address both medical and non-medical health related needs. That means better collaboration amongst providers and leaning into technological advances that allow for the sharing of information. And what’s great about this is that it falls completely in line with value-based payment models. These models don’t just look at the quantity of services provided, they factor in things like patient outcomes and satisfaction. A more empowered consumer that a provider involves in their care plan is one that will see better outcomes and have higher satisfaction with the care they receive. It’s a win-win for consumers and providers alike.
This is also why integrated care models will become another factor that contributes to patient empowerment in 2024. These models emphasize a holistic approach to health by coordinating across different healthcare providers and services. People, especially those with chronic conditions, benefit from a care team that collaboratively addresses their diverse health needs. This places the consumer at the center of the decision-making process, which is why those in integrated care settings often experience better health outcomes and report being more satisfied with the care they receive.
As we move into 2024, the ability of providers to adapt to this trend and support people in taking an active role in their care will be crucial. Empowered consumers are better equipped to manage their health, leading to improved outcomes and a more efficient and effective healthcare system.
Advocates Perspective
The expected growth in the home health and home care sectors and the rise of patient empowerment are not just trends. They are crucial for creating a more responsive, efficient, and patient-centered approach to at-home care. These trends signify that home care and home health care are not just about convenience but about providing a holistic, integrated, and personalized healthcare experience where individuals are most comfortable. This is something that aligns perfectly with the goals of value-based payment models. However, for this to occur, stakeholders need to embrace change and invest in technologies that facilitate care at home, adopt models that support consumer involvement, and continuously strive for quality improvement and innovation. As the industry navigates these changes, it’s also crucial to remain committed to the principles of equity, quality, and compassion. The future of home health and home care is bright, but we need to ensure that it’s not only effective and efficient but also equitable and tailored to the needs of consumers.
Onward!
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About the Author
Fady Sahhar brings over 30 years of senior management experience working with major multinational companies including Sara Lee, Mobil Oil, Tenneco Packaging, Pactiv, Progressive Insurance, Transitions Optical, PPG Industries and Essilor (France).
His corporate responsibilities included new product development, strategic planning, marketing management, and global sales. He has developed a number of global communications networks, launched products in over 45 countries, and managed a number of branded patented products.
About the Co-Author
Mandy Sahhar provides experience in digital marketing, event management, and business development. Her background has allowed her to get in on the ground floor of marketing efforts including website design, content marketing, and trade show planning. Through her modern approach, she focuses on bringing businesses into the new digital age of marketing through unique approaches and focused content creation. With a passion for communications, she can bring a fresh perspective to an ever-changing industry. Mandy has an MBA with a marketing concentration from Canisius College.