Hospice Market by Service, End-user, and Geography - Forecast and Analysis 2023-2027

Hospice Market Forecast 2023-2027

The hospice market is estimated to grow by USD 89.07 billion, at a CAGR of 4.11% between 2022 and 2027. In 2017 the market size was valued at USD 346.7 billion. The market growth is being driven by the rising number of elderly individuals. The prevalence of diseases among the aging population worldwide is a significant factor contributing to this growth. The largest number of older people, around 260 million, is in Eastern and South-Eastern Asia, followed by Europe and North America with over 200 million people in the age group of 65 years and above. According to the Organization for Economic Co-operation and Development (OECD), older adults are more likely to suffer from multi-morbidity, with 58% of those aged 65 years and above reporting two or more chronic diseases, and in some countries, such as Portugal, Hungary, Poland, and Germany, this figure exceeds 70%. On the other hand, only 24% of those under 65 years old have two or more chronic diseases. The leading causes of death among the elderly include heart disease, cancer, and chronic respiratory disease. Therefore, the increasing number of older people globally is driving the market and is expected to continue to fuel growth in the future.

Hospice market: Overview

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The market caters to elderly individuals and geriatric populations facing chronic and life-limiting illnesses such as Alzheimer's disease and end-stage dementia. It addresses challenges related to effective treatment, infections, and hospitalizations through collaborative care models involving healthcare providers and workers. This sector plays a crucial role in ensuring quality reporting and compliance with regulations set by organizations like the CDC and CMS, offering general inpatient care and specialized treatment regimens while providing support during the appeals process and assisting patients with diagnosis and communication difficulties.

Market Dynamics and Customer Landscape

Hospice care is a specialized medical approach that focuses on providing comfort and support to patients with terminal illnesses and their families. The market is witnessing significant growth due to the increasing prevalence of chronic diseases and an aging population. Assisted living facilities, CDCC (Community-Based Care Coordination), and CMS (Centers for Medicare & Medicaid Services) are key players in the market. The use of technology, such as telehealth and electronic health records, is facilitating the delivery of these services. The facilties offer a range of services including palliative care, counseling, and support for patients and their families. Models like the Collaborative Care Model and the Comprehensive Care Model are being adopted to improve the quality of hospice care. The market is expected to continue growing due to the increasing demand for end-of-life care and the focus on improving patient outcomes. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.

Significant Market Trends

Increased incidence of life-threatening diseases is a major trend in the market. The CDC defines lifestyle diseases as diseases caused by unhealthy habits such as smoking, consumption of alcohol, and lack of exercise. Major lifestyle diseases include stroke, heart attack, obesity, diabetes, hypertension, and liver cirrhosis. Chronic diseases such as stroke, heart disease, diabetes, and chronic respiratory diseases were the leading causes of death in 2020.

Furthermore, the incidence of chronic non-communicable diseases has increased in the last 50 years, thereby posing a threat to the younger population as well. With appropriate treatment and medical care, these chronic diseases can be cured, or their severity can be reduced. Moreover, the increase in the prevalence of lifestyle diseases drives the admission rates in healthcare facilities. To meet the high demand for healthcare facilities, manufacturers and suppliers are introducing advanced products and increasing market penetration through efficient distribution networks. Therefore, all the factors will drive the growth of the market during the forecast period.

Major Market Challenge

The lack of skilled nursing staff is a major challenge impeding the market. The industry is facing a shortage of primary care physicians and caretakers, especially in the field of geriatrics. There is a lack of trained nurses available at care centers, and a significant number of nurses tend to take on management-level roles for better career opportunities. Moreover, the culture of working in isolation is quite common in the industry, keeping nurses task-oriented rather than patient-oriented. This depletes the quality of the solutions provided to residents in these facilities.

Furthermore, prospective employees like medical students prefer to opt for non-primary care medical specialties owing to better monetary benefits, and it is difficult to entice them to choose careers in primary care. Physician extenders, such as nurse practitioners and physician assistants, help to fill the gap and play a significant role in caring for residents in these care centers, by collaborating with and under the supervision of a physician. Hence, the lack of skilled staff can hinder the image of these and turn away prospective new residents, thereby reducing the industry's revenue. Therefore, such factors will negatively impact the market growth during the forecast period. 

Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market research and growth strategies.

Global Customer Landscape

Market Segmentation

The market encompasses both in-home and inpatient hospice care services for patients with incurable or life-threatening diseases, such as lung disease, Parkinson's disease, and others. It includes interdisciplinary collaboration among registered or licensed nurses, speech, physical, and occupational therapists, dieticians, case managers, nutritionists, audiologists, and personal caregivers. These programs offer medical treatment, pain treatment, and palliative care, utilizing medical equipment and technology. These settings include the home, hospice inpatient facilities, hospital-based hospice units, and skilled nursing facilities. Inpatient respite care and reimbursement systems through Medicare, NHPCO, and other sources are available. Patient epidemiology includes pediatric patients, and patient satisfaction is high due to the personalized care and routine home care options, including telehealth services and telemedicine. Hospital-based hospice units provide inpatient care for patients requiring intensive medical treatment. These programs offer a range of services, including medical treatment, pain treatment, and palliative care, utilizing medical equipment and technology. These services have gained widespread awareness and offer significant cost savings compared to traditional nursing homes.

By Service

The market share growth by the nursing services segment will be significant during the market forecast period. Nursing services can be availed at nursing homes, care centers, and home care. The nursing services can be provided by a Certified Hospice and Palliative Licensed Nurse (CHPLN). These focus on providing medical, psychological, and spiritual care to terminally ill patients. These patients have less time to live and include those who are expected to survive six months or less than that. 

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The nursing services segment was valued at USD 170.28 billion in 2017 and continued to grow until 2021. Patients with cancer, AIDS, heart disease, kidney failure, liver diseases, and others can avail of nursing hospice services. Nursing services include supervising patients needing care, managing complex pain and other symptoms, comforting the patient by providing psychological counseling, spiritual care, physical, occupational, dietary, and speech therapies, and ongoing grief counseling for the patient, as well as his/her family and friends. In the US, terminally ill patients who are eligible for these can avail of Medicare benefits. Medicare is health insurance for US citizens who are 65 years or older, and it is covered by the United States Department of Health and Human Services. The Medicare benefit includes two 90-day benefit periods followed by an unlimited number of 60-day benefit periods. These patients receive care as long as the doctor and the hospice medical director certify that the patient is terminally ill. These benefits cover resources and support for the family of the patient, medical and nursing, counseling, and bereavement services. Therefore, such factors will contribute to the growth of the market during the forecast period.

Key Regions for the Market

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North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and drivers that shape the market during the forecast period.

The market in North America is driven by the significant presence of chronic diseases such as cancer, end-stage renal diseases, respiratory failure, and chronic kidney disease. Elderly individuals with end-stage dementia and mental impairment also require hospice care. These programs offer effective treatment and palliative care for patients facing difficulty in communicating and experiencing loss of awareness. These expenses are primarily covered by Medicare, Medicaid, and VA benefits. Chronic diseases like Alzheimer's disease, congestive heart failure, and heart disease necessitate organized home care and collaborative care models. Geriatric populations, particularly older adults, require continuous home care for managing pain and symptoms. CDC, CMS, and healthcare providers implement quality reporting and treatment regimens to ensure effective care. Digital health solutions and electronic health records facilitate efficient care delivery in hospice settings. Hospitalizations due to infections are minimized through it. Healthcare workers provide essential support to patients and their families during the hospice journey.

Key Market Company Overview

Companies are implementing various market growth and forecasting strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• Key Offering- Accent Care: The company focuses on providing personal care services, home health, hospice and palliative care, and care management. The key offerings of the company include these services. 
• Key Offering- Amedisys Inc: The company offers these services that provide quality of life and dignity at home when there is a life-limiting illness. The segment focuses on providing compassionate healthcare to help our patients recover from surgery or illness, live with chronic diseases, and prevent avoidable hospital readmissions.
• Key Offering- Bookdale Senior Inc: The company offers these services that can be provided in any place a patient calls home, including nursing homes and assisted living facilities. The segment is primarily designed for middle to upper-income seniors who desire a change in lifestyle within a residential environment to live life to the fullest.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:

• Caritas Internationalis
• Chemed Corp.
• COVENANT HEALTH AND COMMUNITY SERVICES INC.
• Crossroads-Hospice and Palliative Care
• Dierksen-Hospice
• FC Compassus LLC
• Golden Living Centers
• Intrepid USA Healthcare Services
• LHC GROUP Inc.
• LifePoint Health Inc.
• National Association for Home Care and Hospice
• Oklahoma Palliative and Hospice-Care
• PeaceHealth
• ProMedica Health Systems Inc.
• PruittHealth Corp.
• Samaritan Health Services
• The Ensign Group Inc.

Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.

Market Analyst Overview

Hospice care is an essential segment of the healthcare industry, focusing on providing palliative care and support to patients with chronic or life-limiting illnesses. The market is experiencing significant growth due to an aging population, increasing prevalence of chronic diseases, and a shift towards value-based care. The market is segmented into various categories, including hospice services, hospice pharmacy, hospice technology, and hospice education and training. Hospice providers are leveraging advanced technologies, such as telehealth and electronic health records, to improve patient care and outcomes. Additionally, the use of chronic disease management programs and hospice diagnostics is gaining popularity. The market is also witnessing regulatory changes, such as the Patient-Driven Groupings Model, which aims to improve patient care and reduce healthcare costs. Overall, the hospice market is expected to continue its growth trajectory, driven by the increasing demand for quality end-of-life care.

The market caters to individuals facing chronic and life-limiting illnesses, offering specialized care tailored to their unique needs. Diagnosis plays a pivotal role in determining the appropriate level of care, especially for individuals with incurable diseases. Hospice services encompass various settings, including in-home hospice care and general inpatient care facilities, ensuring patients receive comfort and support during their end-of-life journey. Advanced medical technology enhances the quality of care provided, enabling healthcare professionals to manage symptoms effectively and improve patients' overall well-being. Additionally, the appeals process ensures that patients and their families have access to the necessary resources and support throughout their hospice experience. As the demand for compassionate end-of-life care grows, the global market continues to evolve to meet the needs of individuals and their families.

Segment Overview

The market research report forecasts market growth by revenue at global, regional & country levels and provides market trends and analysis and growth opportunities from 2017 to 2027. 

• Service Outlook 
  • Nursing services
  • Medical supply services
  • Physician services
  • Other services
• End-user Outlook 
  • Home settings
  • Hospitals
  • Specialty nursing homes
  • Hospice-care centers
• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • Asia
    • China
    • India
    • Vietnam
    • Others
  • Rest of World
    • Saudi Arabia
    • South Africa
    • Chile
    • Others

Market Scope
Report Coverage	Details
Page number	166
Base year	2022
Historic period	2017-2021
Market forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 4.11%
Market growth 2023-2027	USD 89.07 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	3.54
Regional analysis	North America, Europe, Asia, and Rest of World (ROW)
Performing market contribution	North America at 32%
Key countries	US, Canada, UK, Germany, and China
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	AccentCare Inc., Amedisys Inc., Brookdale Senior Living Inc., Caritas Internationalis, Chemed Corp., COVENANT HEALTH AND COMMUNITY SERVICES INC., Crossroads Hospice and Palliative Care, Dierksen Hospice, FC Compassus LLC, Golden Living Centers, Intrepid USA Healthcare Services, LHC GROUP Inc., LifePoint Health Inc., National Association for Home Care and Hospice, Oklahoma Palliative and Hospice-Care, PeaceHealth, ProMedica Health Systems Inc., PruittHealth Corp., Samaritan Health Services, and The Ensign Group Inc.
Market dynamics	Parent market analysis, Market forecasting,  Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market growth analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2027
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behavior
• Growth of the market industry across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the growth of market vendors

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