U.S. Post-acute Care Market Size

U.S. Post-acute Care Market Size

The U.S. post-acute care market size was valued at around USD 472.9 billion in 2024 and is expected to exhibit growth at a CAGR of 6.3% from 2025 to 2034. One of the primary factors is the aging population, which is increasing demand for post-acute care services as more elderly patients require medical rehabilitation services, long-term care, and specialized recovery solutions.

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Advances in healthcare have also enabled better survival rates for serious illnesses and surgeries, leading to a greater need for follow-up care. Additionally, healthcare policies and regulations, particularly from Medicare and Medicaid, are supporting the development of cost-effective care models to reduce hospital readmissions, which is further fueling the demand for post-acute care settings.
 

Technological advancements are transforming the post-acute care landscape, particularly with telehealth, which was valued at USD 71.9 billion in 2022, and remote patient monitoring devices, allowing more effective and accessible care outside traditional settings. Home-based care, for example, has become increasingly popular due to patient preference and advancements in home healthcare technology, positioning it as a convenient and cost-efficient option compared to institutional care.
 

Moreover, the emphasis on quality care outcomes has led to value-based care models that prioritize efficient, patient-centered care, reducing healthcare costs by preventing complications. With an increased focus on preventive healthcare and wellness programs, providers across the post-acute care sector are adopting innovative approaches to improve patient outcomes. The growth of chronic diseases, such as diabetes and heart condition, also contributes to higher demand for rehabilitative services that require ongoing care beyond initial treatment. Together, these factors make post-acute care essential in the evolving healthcare landscape, supporting its projected growth across diverse service segments.
 

Post-acute care refers to a range of medical and support services provided to individuals recovering from a severe illness, injury, or surgery. This type of care typically follows a hospital stay and focuses on recovery, rehabilitation, and the management of chronic conditions to help patients regain independence. Post-acute care services include skilled nursing facilities, inpatient rehabilitation, long-term acute care hospitals, home health care, and hospice. These services are essential for managing complex needs outside traditional hospital settings, promoting improved patient outcomes, and reducing hospital readmission rates through personalized, ongoing care.