Transitional Care Management (TCM) Services Market Size

Transitional Care Management Services Market Size

The transitional care management services market size was valued at around USD 265.5 billion in 2024 and is estimated to grow at 16.5% CAGR from 2025 to 2034. Transitional care management services comprise structured healthcare services for patients moving from inpatient hospitals, skilled nursing facilities, or other healthcare settings to community-based or home environments. These services maintain care continuity, reduce hospital readmissions, and improve patient outcomes.

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The increasing prevalence of chronic diseases drives the transitional care management (TCM) services market growth. Conditions such as cardiovascular diseases, diabetes, and COPD require continuous care and effective transitions between healthcare settings to prevent complications. According to the World Health Organization, non-communicable diseases (NCDs) account for 74% of global deaths, with cardiovascular diseases causing 17.9 million deaths annually. This highlights the need for TCM services to manage chronic conditions, reduce healthcare costs, and improve patient outcomes. The growing burden of chronic diseases increases demand for coordinated care models through TCM services.
 

The focus on reducing hospital readmissions further strengthens the TCM market. Programs like Medicare's Hospital Readmissions Reduction Program (HRRP) encourage healthcare providers to implement TCM services to minimize unnecessary readmissions, which represented approximately 20% of all Medicare hospitalizations in 2022. TCM services help lower readmission rates, reduce healthcare costs, and enhance care quality through coordinated follow-ups, medication management, and patient education.