The U.S. post-acute care market offers a wide range of services and facilities for patients and elderly people who do not require intensive care but still need medical care, physical therapy, or rehabilitation services. These services include skilled nursing facilities, inpatient rehabilitation facilities, long-term acute care hospitals, and home health agencies. Post-acute care aims to optimize a patient's health, functional ability, and quality of life following a hospital stay. It helps reduce the risk of rehospitalization and improves overall health outcomes. The growing geriatric population prone to chronic diseases and the need for long-term care are key factors driving the demand for post-acute care services in the country.

The U.S. post-acute care market is estimated to be valued at US$614.2 billion in 2024 and is expected to exhibit a CAGR of 7.1% over the forecast period of 2024 to 2031.

Key Takeaways

Key players operating in U.S. post-acute care are Kindred Healthcare, Encompass Health Corporation, HCR ManorCare, Brookdale Senior Living, Genesis HealthCare, Amedisys, Inc., LHC Group, Inc., Select Medical Holdings Corporation, Vitas Healthcare, Post Acute Medical, LLC, SavaSeniorCare Administrative Services LLC, LifeCare Health Partners, Extendicare, Ensign Group, Inc., Sunrise Senior Living, LLC, and BayADA Home Health Care. These major players are focusing on mergers and acquisitions to expand their service offerings and geographical reach. 

The growing medical tourism and increasing demand for long-term care at home present significant growth opportunities for stakeholders. Many post-acute care providers are collaborating with hospitals and insurers to offer seamless care transitions and better control over readmission rates.

The U.S. post-acute care market actively pursuing international expansion strategies through collaborations with overseas partners. For instance, many US-based long-term care providers have entered partnerships to set up facilities in Asian and European countries with large aging populations. This will help them tap foreign markets with significant long-term potential.

Market Drivers

Rising geriatric population: The growing senior citizen demographic in the US that is more prone to chronic diseases and disabilities is a key driver as it increases the need for post-acute and long-term care services.

Preference for long-term care at home: Younger patients and their families increasingly prefer receiving post-acute care at home instead of institutional facilities to accelerate recovery in a familiar environment. This is propelling the home healthcare segment.

Market Restraints

High costs: The expense of post-acute care, especially at skilled nursing facilities, continues to weigh on consumers and insurers. Cost-cutting pressures on providers also threaten profit margins.

Staffing challenges: The post-acute care sector suffers from a severe shortage of trained caregivers and medical professionals. Attracting and retaining qualified staff is a major constraint for operators.

Segment Analysis

The U.S. post-acute care market is dominated by the skilled nursing facilities sub-segment, which accounts for nearly 45% of the total market share. Skilled nursing facilities provide short-term and long-term care to patients or residents who need skilled nursing or rehabilitation services but do not necessarily require hospitalization. These facilities offer 24x7 nursing and medical care, along with therapies like physical, occupational, and speech therapies that aid faster recovery for seniors who have undergone surgery, strokes, or chronic illnesses. This sub-segment is dominant owing to the growing geriatric population, which requires short- or long-term post-acute care along with rehabilitation therapies post-hospitalization or due to chronic conditions.

Global Analysis

Regionally, the Western United States dominates the U.S. Post-acute Care Market with more than 30% share owing to higher life expectancy and aging population in states like California and Washington. However, the Southern region is witnessing the fastest growth and is projected to expand at over 8% CAGR during the forecast period, driven by a growing shortage of beds in hospitals and a focus on reducing healthcare costs through transitioning patients to lower-level post-acute care facilities. Key states in the South driving this growth include Florida, Texas and North Carolina.

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