Long Term Care Market Analysis

Long Term Care Market Analysis

The community based services segment was valued at USD 328 billion in 2020 owing to high affordability and increased public spending for the community based services. Community-based organizations including the area agencies on aging (AAAs) and the centers for independent living (CILs) offer community based services. These organizations provide cost-effective and proven clinical resources meeting the medical & non-medical requirements of elder adults and people with disabilities. AAAs and other community-based institutions usually source their funding from national policies including the Older Americans Act. Additionally, the steady increase in healthcare expenditure by Medicaid and Medicare services have increased the funding for community based services.

The 75 to 84 segment captured 37% of the long term care market share in 2020 led by the rapidly aging population base and the high incidence of disabling conditions among the elderly population.

The female segment dominated more than 60% of revenue share in 2020 impelled by the growing prevalence of chronic conditions such as hypertension, breast cancer, diabetes, and other diseases among women. By the end of 2020, approximately 7.8 million women were suffering due to breast cancer in the past 5 years, making it the most prevalent cancer in the world. Breast cancer is responsible for impacting the highest number of disability-adjusted life years (DALYs) among women than other cancers. Thus, the soaring prevalence of cancer and significant loss of disability-adjusted life years (DALYs) to promote the need for long term care among women.

The public segment size was USD 403 billion in 2020 propelled by the rising public funding and adoption of favourable policies by the authorities for long term care services. According to the OECD, the combined public health and long-term care expenditure accounted for around 6% in 2006-10 and is projected to reach 9.5% in 2060. Mandatory public long term care insurance systems exist in countries such as Republic of Korea, Germany, Japan, Luxembourg, and the Netherlands. Moreover, increasing awareness regarding elderly care services and usage of supportive legislation in emerging economies is set to benefit the industry revenue.
 

U.S. long term care market will reach USD 598 billion by 2027. This significant growth is attributed to several factors such as substantial target population, high expenditure on healthcare & LTC, and rise in incidence of chronic ailments across the country. According to the American Action Forum, by 2030, approximately 24 million Americans are estimated to require LTC, indicating two-fold increase as compared to current demand. The amount and complexity of care for every individual is also set to increase with soaring number of chronic conditions. Furthermore, projections suggest that by 2030, the LTC costs are expected to more than double and may reach USD 2.5 trillion. Presence of public health reimbursement services provided by Medicare and Medicaid services is predicted to drive the industry progression. Medicaid and Medicare services provides funding to community-based organizations, elder care centers, and nursing homes.