Post-acute Care Market Analysis

Post-acute Care Market Analysis

To get key market trends

  Download Free Sample

The market by service is categorized into skilled nursing facilities (SNF), inpatient rehabilitation facilities (IRF), long-term care hospitals (LTCHs), hospice care, home health agencies (HHA), and other services. The skilled nursing facilities segment dominates the market, with a revenue of around USD 245.2 billion in 2023.
 

• As the population ages, there is an increasing demand for rehabilitation and long-term care services provided by SNFs. Hospitals often discharge patients to SNFs for continued care, rehabilitation, and recovery, driving demand for SNF services. SNFs rely heavily on Medicare and Medicaid reimbursements, which influence their operational capacity and financial stability.
   
• The adoption of advanced medical technologies and therapies in SNFs improves patient outcomes and attracts more referrals from hospitals. The rising prevalence of chronic illnesses necessitates ongoing care and management, which SNFs are equipped to provide.
   

The post-acute care market by age is categorized into elderly (65 years & older), adults (45-64 years), and other age groups. The elderly (65 years & older) segment dominates the market, with a revenue of around USD 285.6 billion in 2023.
 

• Elderly individuals typically have higher healthcare needs due to age-related conditions, chronic illnesses, and post-surgical care requirements, leading to increased utilization of post-acute care services. Aging often correlates with the development of chronic diseases such as diabetes, cardiovascular conditions, and arthritis, necessitating ongoing medical rehabilitation services provided by post-acute care facilities.
   
• Moreover, most older adults suffer from at least two chronic conditions and subsequently cope with multiple chronic conditions. European Union data suggests that around 35% of the adult population in Europe suffered from multiple chronic conditions in 2021. This growing demand for post-acute care providers to manage affected patients and families while connecting them with appropriate community resources and services will anchor the industry's dynamics.
   
• Additionally, Medicare, a primary payer for post-acute care services for individuals aged 65 and older, significantly influences market dynamics. Medicare covers services in skilled nursing facilities (SNFs), inpatient rehabilitation facilities (IRFs), and home health agencies (HHAs), supporting elderly patients' access to these services.
   

The post-acute care market by condition is categorized into amputations, wound management, brain injury, spinal cord injury, neurological disorders, and other conditions. The neurological disorders segment held the leading share of the market, with a revenue of around USD 175.3 billion in 2023.
 

• Neurological disorders such as stroke, traumatic brain injury (TBI), multiple sclerosis (MS), Parkinson's disease, and others are prevalent in the population, leading to substantial demand for post-acute care services.
   
• Patients with neurological disorders often require specialized rehabilitation programs to regain functional abilities, manage symptoms, and improve their quality of life. This includes physical therapy, occupational therapy, speech-language pathology, and cognitive rehabilitation, commonly provided in post-acute care settings.
   
• Moreover, many neurological disorders require long-term management and support beyond acute care settings, driving ongoing demand for post-acute care services such as skilled nursing facilities (SNFs), inpatient rehabilitation facilities (IRFs), and home health agencies (HHAs).
   
• Advances in rehabilitation technologies, including robotic-assisted therapy, virtual reality (VR) rehabilitation, and neurostimulation techniques, enhance treatment outcomes and attract patients seeking advanced care options.
   

In 2023, North America's post-acute care market generated revenues of USD 332.6 billion and is poised for significant growth in the coming years.
 

• North America's aging population is driving the demand for post-acute care services. After hospital stays or due to chronic conditions, elderly individuals often seek specialized care and rehabilitation. Medicare and Medicaid reimbursement policies play a pivotal role in shaping the market. These government programs cover a significant portion of costs for services from skilled nursing facilities (SNFs), inpatient rehabilitation facilities (IRFs), and home health agencies (HHAs), thereby influencing market dynamics. According to the U.S. Census Bureau, the population aged 65 and older is projected to reach 80 million by 2040.
   
• Furthermore, the rising burden of chronic diseases, combined with supportive reimbursement policies, has led to increased hospitalization rates in the region. Favorable regulations further enhance patient care by providing easy access to various treatment alternatives. The expanding number of post-acute care service providers, addressing the growing geriatric disease burden, will shape the regional market outlook. The Centers for Disease Control and Prevention (CDC) reported that 6 in 10 adults in the U.S. have a chronic disease.
   

In 2023, Germany's post-acute care market is set for notable growth in the coming years.
 

• Germany's aging demographic is fueling the demand for post-acute care services, with the elderly often needing specialized care post-hospitalization or for chronic conditions. The Federal Statistical Office of Germany projects that by 2030, nearly 29% of the German population will be aged 65 and older.
   
• Market dynamics are heavily influenced by government policies and insurance coverage, which cover a significant portion of costs at skilled nursing facilities (SNFs), inpatient rehabilitation facilities (IRFs), and home health agencies (HHAs). In 2023, Germany's statutory health insurance covered approximately 90% of the population.
   
• Moreover, the rising prevalence of chronic diseases, bolstered by supportive reimbursement policies, has resulted in increased hospitalization rates, further propelling the market. The Robert Koch Institute reported that around 40% of adults in Germany suffer from at least one chronic disease.
   

China is projected to experience the highest growth in the coming years.
 

• China's swiftly aging population is amplifying the demand for post-acute care services, with a notable number of elderly individuals seeking specialized care and rehabilitation. According to the National Bureau of Statistics of China, the population aged 65 and older is expected to reach 300 million by 2035.
   
• Government initiatives and healthcare reforms are playing a crucial role in shaping the market, evident from the increased funding and support directed towards post-acute care facilities. Additionally, the ongoing expansion of healthcare infrastructure is further fueling the market's growth. In 2023, the Chinese government allocated approximately USD 1.4 trillion for healthcare reforms.
   

Latin America's post-acute care market is on track to hit USD 57.7 billion by the close of 2032.
 

• The region is grappling with a rising burden of chronic diseases, including diabetes, cardiovascular issues, and respiratory conditions, all of which necessitate ongoing management and rehabilitation. This surge in chronic conditions amplifies the demand for comprehensive post-acute care services, spanning skilled nursing, physical therapy, and home health care. The Pan American Health Organization (PAHO) reported that chronic diseases account for 75% of all deaths in Latin America.
   
• Medical tourism is thriving in countries like Mexico, Brazil, and Costa Rica, attracting patients with their blend of affordable yet high-quality healthcare services. This trend is evident in post-acute care, where patients from North America and beyond are increasingly turning to Latin America for cost-effective rehabilitation and recovery services following surgeries and medical procedures. According to the Medical Tourism Association, Latin America saw a 20% increase in medical tourists in 2023.