The U.S. home healthcare sector is on track for rapid expansion, with market value projected to grow from $115.13 billion in 2024 to $210.25 billion by 2033, according to a new report from Renub Research. Analysts noted that the 6.92% compound annual growth rate (CAGR) represents a significant shift in how Americans receive medical care.
Aging population fuels demand for home-based services
The report points to the country’s aging population as the primary driver of growth. Older adults are living longer with chronic conditions, such as cardiovascular disease, diabetes, arthritis, and respiratory disorders. For many families, home-based services have become a preferred alternative to institutional care, as they offer more affordable and personalized support.
The demographic shift is reshaping hospital strategies. Rising inpatient costs and pressure to reduce readmissions are prompting health systems to strengthen chronic disease management.
Home-based care, supported by telehealth, connected devices, and continuous remote monitoring, offers a scalable, tech-enabled alternative that enables clinicians to detect problems earlier and intervene sooner.
Hospitals facing staffing shortages and higher patient volumes are increasingly turning to home health agencies to manage post-acute care. The model can free up hospital beds, lower operating expenses, and align with value-based care goals. However, it requires close coordination among caregivers, agencies, and insurers to ensure continuity when transitioning patients from hospital to home.
Workforce shortages, regulatory barriers challenge expansion
Despite strong demand, the sector faces significant obstacles. The national shortage of skilled home healthcare workers has led to burnout, turnover, and inconsistent care quality. For hospitals, these gaps complicate discharge planning for patients with complex medical needs.
Regulatory inconsistencies also add strain. Fragmented state and federal requirements, along with slow reimbursement cycles, pose difficulties for smaller agencies and might reduce patient access. Health systems must navigate these variations when forming partnerships or designing post-acute care pathways.
Home care becomes a central part of U.S. healthcare
Industry analysts predict that growth will likely continue as hospitals, clinics, and insurers contend with rising costs and increasing patient demand. As technology improves and patient preferences evolve, home-based care is becoming an integral component of the nation’s healthcare infrastructure.
Many providers expect the home to serve as a major frontline for delivering essential medical services in the coming decade.
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Macayan, D. (2025, December 3). U.S. home healthcare market to hit $210Bn by 2033: Renub Research. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/u-s-home-healthcare-2033/
Golinkin, W. (2024, November 19). Healthcare Is Heading Home, and That’s a Good Thing! Forbes. Retrieved from https://www.forbes.com/sites/forbesbooksauthors/2024/11/19/healthcare-is-heading-home-and-thats-a-good-thing/
