The long-term care industry, including nursing homes, assisted living, home care, and hospice care, raked in $259 billion in revenue in 2011, according to health care market research publisher Kalorama Information.
Between 2006 and 2011, the industry grew 5.5% for a “healthy” growth rate that reflects positive demographics and industry performance.
The hospice and home care segments saw the strongest growth, while nursing care had the lowest growth because of its dependence on government funding, according to Kalorama Institute’s report.
Despite favorable demographics supporting the industry’s growth potential, it will face challenges concerning the ability of customers to pay for services.
No major expansion of state or federal long-term care benefits are expected in the next five years, according to Kalorama, due to ongoing budgetary pressures at both levels, and many states have already begun cutting their Medicaid funding.
“Most Americans erroneously believe that they will not require long term care of any kind and that, if they do, Medicare or their health insurance will pay for it,” said Bruce Carlson, publisher of Kalorama Information, in a statement. “However, Medicare does not cover most long term care services and it covers only very limited costs related to residential nursing care.”
The full report, The Long Term Care Market: Nursing Homes, Home Care, Hospice Care, and Assisted Living, can be accessed here.
Written by Alyssa Gerace