US Home Healthcare Sector: Resurgence After a Period of Contraction

The US home healthcare market is characterized by high fragmentation and competition, mostly comprising small-scale local providers. Major players such as Amedisys, Addus, Aveanna, Brookdale Senior Living, and The Pennant Group (public and private) dominate the landscape. This sector's growth is propelled by an aging population, escalating healthcare costs, and an increasing age dependency ratio. While the growing senior population pushes up healthcare costs, providing care in home settings can reduce expense. Reimbursement trends are shifting toward value based models and facilitating enhanced patient outcomes. Despite challenges like shrinking margins, the sector rebounded in 2023 post COVID-induced disruptions, driven by technological advancements and demographic factors. This resurgence after a period of contraction reflects the sector's resilience and potential for continued growth.