What Led to Transition from Health Care to Home Care in 2022?

The home health market size in 2021 was USD 198.9 billion and is projected to rise to USD 298.2 billion by 2026, at an 8.4% CAGR.

Home Healthcare Market

The home care industry is increasing in the USA and worldwide. The primary accelerator for this growth is the aging global population and rising life expectancy.

There were around 703 million people aged 65 years and above globally in 2019. However, this number may rise to 1.5 million by 2050. People aged 80 and above may triple, which may be 426 million by 2050.

-UN Department of Economic and Social Affairs

The industry is changing rapidly due to the increasing need for home care services. One of the biggest drivers behind this rise is the global pandemic- COVID-19. The pandemic forced people to stay in their homes, changing how they perceived health care. Owing to the dangers posed by the virus, families preferred home care over clinical care because seniors experienced quality care in the comforts of their own homes.

Gradually, home care became the new normal.

Families chose in-home care services because they juggled between busy work schedules, household chores, managing kids, and caring for their elderly. Living alone became risky due to aging factors, falls & injuries, and common ailments. The spread of the virus and its life-threatening disease made health care in hospitals difficult, making home care a preferable option.

It is safe to say that home care is the future of health in 2023 and beyond. Agencies are transitioning from health care to home care, especially post-pandemic.

Why? Here’s what sets off the revolutionary change, with technology only accelerating it.

From Health Care Facility to Home Care- What does 2023 Have in Store?

The primary aim of a patient entering a healthcare facility is to become well again and go home. While rising healthcare needs and costs are already pushing the elderly to seek home care, the global pandemic has created a catalyst for reimagining the future.

A team of physicians serving Medicare fee-for-service conducted a survey. It estimated that around $265 billion worth of care services for Medicare beneficiaries could shift from traditional facilities to homes by 2025, without a decrease in access or quality.


This number sheds light on a three to fourfold increase in the cost of care for this population.

In 2019, the number of people aged 60 years and older was 1 billion. This number will increase to 1.4 billion by 2030 and 2.1 billion by 2050.

World Health Organization

Care delivered in hospitals and clinics has become unsustainable. Thus, transitioning health care delivery from hospital to home has become an attractive approach. Patients today prefer aging in the comforts of their home environment.

What Prompted a Transition from Health Care to Home Care?

A number of pandemic-related factors caused a new approach to home care. Some of these opportunities are:

  • A Growth in Virtual Care:

    The year 2021 saw a tremendous increase in telehealth, which was 38 times higher than pre-pandemic. While the reimbursement parity future for telehealth is still unclear, home care providers and payers see these changing times as opportunities to evolve with regards to customer needs.

    A survey shows that 40% of customers said they expect to continue using telehealth. This represents an increase from 11 percent of consumers using telehealth prior to the COVID-19 pandemic.


    While coming to an end in 2021, the pandemic brought about a striking change in people’s approach to healthcare. Families wanted their elderly to visit healthcare facilities only to get necessary medical treatment allowing them to heal and age in their homes.

  • More Patients Are Evaluating their Options:

    As baby boomers age, more and more families and patients are considering their options for long-term care. COVID-19 has changed the scenario, and the elderly wish to receive care in the comforts of their home.

    95% of payers agree that treating members at home is much more cost-effective in the long term than treating them in a facility.

    KRC Research

    In-home caregivers visit the elderly to assist them with activities of daily living such as grooming, meal preparation, laundry, and medication reminders, among others. The elderly’s attitude towards home care is changing because it promotes their ability to stay healthy and independent while surrounded by their close family.

  • Availability of New Technologies:

    New technologies are making home care possible for the elderly and their families. In-home care is becoming popular, in part, due to home care software, which helps agencies who provide services for the elderly in their own home. Home care agencies are switching to an all-in-one home care software that provides clients with caregiver schedules, care plans, client history, on-the-go payments, and detailed feedback.

    The emergence of new technology is helping the elderly maintain sound health, especially when they need assistance with activities of daily living.

    Technology is indeed making their home care journey a pleasant one.

The Bottom Line

The global pandemic has created a catalyst for reimagining care at home. It improves care quality and client experience, making the potential for payers, healthcare facilities, investors, and technology companies.

The factors mentioned clearly show that the future of healthcare is indeed home care and how it will gain traction in 2023 and beyond!

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