U.S. Home Healthcare Services Market: Size & Forecast by Service Type (Skilled Nursing, Rehabilitation, Aide Services), Payer (Medicare, Medicaid, Commercial), Patient Group & Region – Forecast and Analysis to 2035

The U.S. home healthcare services market was valued at USD 111.2 billion in 2024 and is estimated to reach USD 120.1 billion in 2025, growing at a CAGR of 10.2% from 2025 to 2035, reaching USD 317.9 billion by 2035.

U.S. Home Healthcare Services Market

The U.S. home healthcare services industry continues to expand rapidly as healthcare providers, payers, and patients increasingly recognize the cost-effectiveness and clinical benefits of home-based care delivery. With an aging population of over 88 million Americans expected to be 65+ by 2050, the demand for skilled nursing, rehabilitation, and specialized home healthcare services is driving unprecedented market growth. Medicare and Medicaid reimbursement policies increasingly favor home healthcare as a cost-effective alternative to institutional care.

For instance, In September 2024, the Centers for Medicare & Medicaid Services (CMS) announced updated reimbursement rates for home healthcare services under the Patient-Driven Groupings Model (PDGM), applying a 3.2% market basket inflation factor for 2025. This policy change is expected to drive further adoption of home healthcare services across skilled nursing, therapy, and chronic care management segments.

The industry is experiencing significant technological transformation through remote patient monitoring, artificial intelligence-driven care coordination, and telehealth integration. Leading home healthcare providers are investing heavily in digital health platforms to improve patient outcomes, reduce readmission rates, and enhance operational efficiency. These technological advances are enabling providers to serve more complex patient populations while maintaining high-quality care standards and achieving better financial performance.

U.S. Home Healthcare Services Market Trends

Skilled Nursing Services Segment Projected to Showcase the Largest Growth During the Forecast Period

Skilled nursing services are projected to show significant growth during the forecast period, representing approximately 40% of the total home healthcare services market in the U.S. These services include wound care management, medication administration, chronic disease monitoring, and post-acute care following hospital discharge. The complexity of care provided in home settings continues to increase as healthcare systems push for earlier hospital discharges and value-based care models emphasize outcomes over volume.

The growth in skilled nursing services is attributed to rising chronic disease prevalence, with over 190 million Americans living with at least one chronic condition. This demographic requires ongoing medical supervision and clinical intervention that skilled nurses can effectively provide in the home setting. Medicare data shows that beneficiaries receiving skilled home health services have significantly lower readmission rates compared to those without home healthcare support.

Major home healthcare providers such as Amedisys, Optum Home Health, and BrightSpring Health Services are actively expanding and restructuring their service capabilities through mergers, acquisitions, and divestitures in 2024 and 2025 to meet growing demand for skilled nursing and home healthcare services. The integration of telehealth platforms and remote monitoring technologies is enabling skilled nurses to manage larger patient caseloads while maintaining clinical quality and safety standards.

Southeast Region to Exhibit the Highest Growth During the Forecast Period

The Southeast region is estimated to witness significant growth during the forecast period, driven by rapid aging population, Medicare Advantage penetration, and favorable regulatory environments. States like Florida, Texas, and North Carolina are experiencing unprecedented demand for home healthcare services as retiree populations continue to grow and healthcare systems prioritize community-based care models.

Florida leads the region with approximately 4.6 million residents aged 65 and older, representing about 21% of the state's population in 2025. The state's home healthcare market is mainly driven by Medicare Advantage plan growth and state Medicaid waiver programs that prioritize home and community-based services. Texas follows closely with significant investments in rural home healthcare access and telehealth infrastructure.

U.S. Home Healthcare Services Market Analysis

The U.S. home healthcare services industry faces significant workforce shortages, particularly in nursing and therapy disciplines, with turnover rates averaging around 70% annually, posing ongoing challenges to care delivery and access. Regulatory compliance requirements under CMS quality reporting programs and state licensing variations create operational complexity and increased administrative costs. Reimbursement rate pressures from Medicare and Medicaid managed care organizations continue to impact provider margins, requiring operational efficiency improvements and technology investments.

Despite these constraints, the market offers substantial growth opportunities through value-based care contracts, technology-enabled service delivery, and expansion into underserved geographic markets. The adoption of remote patient monitoring and artificial intelligence is helping providers manage larger patient populations while improving clinical outcomes and reducing costs. Government initiatives supporting aging-in-place policies and Medicare Advantage growth provide sustainable reimbursement pathways for innovative service delivery models.

Based on service type, the home healthcare services market is segmented into skilled nursing services, rehabilitation services, home health aide services, medical social services, hospice and palliative care services, specialized services, and technology-enabled services. The skilled nursing services segment held a market share of over 40% in 2024 and is expected to grow at the highest CAGR from 2025-2035.

Based on payer type, the market is segmented into Medicare, Medicaid, commercial insurance, private pay, and other payers. The Medicare segment is expected to grow at a higher CAGR through 2035, driven by demographic trends and policy support for home-based care.

Based on patient demographics, the market serves geriatric patients (65+ years), adult patients (18-64 years), and pediatric patients (0-17 years). The geriatric segment dominates with over 65% market share, reflecting the aging U.S. population and chronic disease prevalence in older adults.

Regional Market Analysis

Florida leads the U.S. home healthcare services market with significant Medicare Advantage penetration and state policy support for aging-in-place initiatives. The state's regulatory environment favors home healthcare expansion, with streamlined licensing processes and telehealth-friendly policies driving provider growth and innovation.

Texas continues to expand its home healthcare infrastructure to serve diverse urban and rural populations. The state's Medicaid managed care programs increasingly prioritize home and community-based services, creating opportunities for specialized providers serving low-income populations and individuals with disabilities.

California demonstrates strong growth in technology-enabled home healthcare services, with Silicon Valley companies developing innovative care delivery platforms. The state's large Medicare Advantage population and progressive healthcare policies support advanced home healthcare models including hospital-at-home programs and AI-driven care coordination.

New York focuses on integrating home healthcare with managed long-term care programs and dual-eligible special needs plans. The state's emphasis on social determinants of health and health equity creates opportunities for comprehensive home healthcare models serving diverse patient populations.

U.S. Home Healthcare Services Market Share

Major players like Amedisys, Optum (LHC Group), BrightSpring Health Services, BAYADA Home Healthcare, AccentCare Inc., and Enhabit Home Health & Hospice compete strongly in the U.S. home healthcare services industry. These companies focus on strategic acquisitions, technology investments, and value-based care partnerships to strengthen their market positions and expand service capabilities. As demand grows for comprehensive home healthcare across Medicare, Medicaid, and commercial populations, companies invest heavily in workforce development, clinical quality programs, and operational efficiency initiatives.

Leading providers are forming strategic partnerships with health systems, Medicare Advantage plans, and technology companies to create integrated care delivery models. These collaborations enable better care coordination, improved patient outcomes, and sustainable financial performance under value-based payment arrangements. The market is also witnessing increased private equity investment in home healthcare platforms that can scale operations and integrate advanced technologies.

U.S. Home Healthcare Services Market Companies

Major players operating in the U.S. home healthcare services industry include:

• Amedisys, Inc. - Leading provider with over 519 care centers (locations) across 38 states and the District of Columbia
• Optum (LHC Group) - Integrated health services with comprehensive home healthcare capabilities
• BrightSpring Health Services - Specialized in complex care and chronic condition management
• Enhabit Home Health & Hospice - Post-acute care leader expanding home healthcare services
• AccentCare, Inc. - Regional provider focused on clinical excellence and technology integration
• Addus HomeCare Corporation - Personal care and chronic condition management specialist
• Bayada Home Health Care - Private company with national reach and specialized service lines
• Elara Caring - Technology-enabled provider serving diverse patient populations
• Gentiva - Medicare Advantage integrated home healthcare model

U.S. Home Healthcare Services Industry Segmentation

The U.S. home healthcare services market includes skilled nursing, rehabilitation therapy, personal care, medical social services, and specialized clinical services delivered in patients' homes. The report excludes institutional care settings and focuses exclusively on home-based service delivery models.

The home healthcare services market is segmented by service type, payer type, patient demographics, service model, and geography (Northeast, Southeast, Midwest, and West regions). By service type, the market includes skilled nursing services, rehabilitation services, home health aide services, medical social services, hospice and palliative care services, specialized services, and technology-enabled services. By payer type, the market covers Medicare, Medicaid, commercial insurance, private pay, and other payers. The report provides comprehensive market analysis and forecasts for each segment.

For each segment, market size is provided in terms of value (USD million) and growth projections through 2030.

U.S. Home Healthcare Services Market Report Summary