Home Health Care Services Industry Overview

Excerpt from Home Health Care Services Report

Companies in this industry provide a range of skilled nursing and other health care services as well as personal care services to patients in their homes. Major companies include AMEDYSIS, Apria Healthcare Group, Gentiva Health Services, and Lincare Holdings (in the US), Nestor Healthcare Group (the UK); and LVL Médical Groupe (France).

Competitive Landscape

Developments in portable medical technologies, patients' preference for in-home care, and demographics are driving growth in home care services. The profitability of individual companies depends on effective marketing and efficient operations. Large companies have some economies of scale in sales and marketing. Small companies can compete successfully by serving a local market. The industry is highly fragmented: the 50 largest companies generate less than 25 percent of revenue.

Products, Operations & Technology

The home health care industry includes medical and skilled nursing services; medical equipment, supplies, and medication services; personal care (such as bathing and transportation); therapeutic services (like physical and respiratory therapy); and psychosocial services (including counseling and spiritual care). Services include traditional home care (about 50 percent of industry revenue), home hospice care (21 percent), and home nursing care (12 percent). Companies treat patients who have a short-term need for care, such as after a hospital stay, as well as those with conditions like chronic obstructive pulmonary disease (COPD) who require long-term treatment. Heart disease, diabetes, and cerebral vascular disease are among the most prevalent admission diagnoses for home health care patients. Some 70 percent of patients are age 65 and older.