7 Home Care Industry Predictions to Prepare for in 2023 and Beyond
The home care industry is growing at a rapid pace. According to the National Association for Home Care and Hospice, around 12 million Americans receive home care services in one form or the other. And the number is expected to grow in the coming years.
The home care market was valued at 301.09 billion in 2021, which is expected to reach a value of $813.17 billion by 2028 at a CAGR of 15.25% between 2022-2028.
We’re just one month away from the year 2022 ending, and the home care industry is preparing for what promises to be an interesting 2023. A recent industry report examined how the global pandemic affected the healthcare industry and how it is transitioning to home care.
While the demand for home care services skyrocketed during the pandemic, the industry couldn’t keep up with the rising demands. And a series of factors, such as increasing delivery costs and staffing challenges, are responsible. Home care giants expect the industry to grow and list some predictions to help agencies prepare themselves in the coming time.
Read on to know what these are:
- Home Care Services will get a Closer Look:
Home-based care is very appealing. Being cared for at home instead of a clinical setting comes with many benefits. Daily routines in housekeeping, meal times and prescription reminders alleviate stress, depression, feelings of isolation and help improve memory health and physical stability.
The result is a longer, happier and more productive life.
- Better Opportunities for Mergers & Acquisitions:
Many new organizations are eyeing the post-pandemic period as an ideal time for acquisitions. As the market prepares to benefit from the improving economy, companies are motivated to compete in the growing home health care sector.
Agencies can also plan on acquisitions to focus on their specializations and to get a competitive edge over others within their niche market.
- Continuation in Staffing Crisis:
Post pandemic, 1 in 5 employees have left healthcare. As a result, home care agencies must apply varied techniques to address the issue. Having the best application process to pick out the right people can fill skill gaps and establish better growth opportunities.
Home care agencies are targeting candidates by re-engaging past employees to return to their former roles to make the onboarding process more accessible. However, the turnover rate is also rising with the increase in home care services. Poor communication, lack of recognition, and challenging work hours make caregivers leave their jobs.
Studies show the home care industry’s client turnover rate escalated in 2021, hitting a 76% high.
Given this challenge, home care agencies must take steps to prevent caregiver turnover and retain them. While it may seem challenging to predict caregiver churn, agencies can use modern innovations to reach new heights of success. Using AI-based home care software, agency owners can predict caregiver retention, analyze individual performance, and minimize churn rates.
- Medicare Advantage will Reach New Heights:
Medicare Advantage encompasses additional benefits, which Original Medicare doesn’t. With Medicare Advantage, agencies can escalate the home care industry in a new direction, especially with the rise in home health.
There is renewed competition in the market to become a preferred provider, highlighting Medicare plans. Additionally, Medicare Advantage continues expanding to rural areas, making the home care market highly competitive.
- Increased Positivity Around Value-Based Care:
The coming year will see a significant change in the home care industry as clients pay agencies for the value provided instead of volume. Home care industry experts have made this a talking point for over a decade.
Paying for outcomes has become far superior to volume. The benefits of a value-based healthcare system extend to patients, providers, payers, suppliers, and society as a whole.
Patients spend less money to achieve better health. Providers achieve efficiencies and greater patient satisfaction. Payers control costs and reduce risk. Suppliers align prices with patient outcomes. Society becomes healthier while reducing overall healthcare spending.
- A Better Support, Payments, and Work-related Training for Caregivers:
Home care industry trends show that better training support and wage payments lead to better caregiver retention rates. Quality training makes in-home caregivers feel confident, allowing non-medical care providers to retain quality workers.
The management personnel use AI-based home care software to retain caregivers, enabling reduced caregiver churn rates. Additionally, technology and better incentives allow caregivers to maintain quality professionals, improving work for everyone in the industry.
- Venture Capital Feeding of a Varied Type:
Numerous new ventures have come up in the home care business to make easy money. Companies usually find themselves at a crossroads with skyrocketing interest rates and increasing costs.
To escape confusion, it is worth looking for venture capital firms to dictate investor-friendly terms to other organizations.
Different cultures dominate the home care agencies, making them difficult to scale. Also, the owners and agencies are overrun with existing duties, and expanding the home care business is not worth considering.
Venture capitalists offer financial backing for helping agencies scale, making venture capital investors provide supportive services like personalized in-home care and more.
Home agencies look forward to the latest trends and predictions to prepare themselves for 2023, significantly when the senior population is snowballing, and the industry is revolutionizing.
Home care experts at Caresmartz say that the agencies can expect technological innovations, staffing hurdles, customer segmentation, and more in 2023. The only tip for thriving in this changing market scenario is to keep up with the industry trends to remain competitive and successful.
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