Learn about trends in the Home Health Care Services and where to find more information about how to open your own Home Health Care Business. Don’t forget you can receive free or low-cost training and free professional business advice, from your local Small Business Development Center!
View our related business reports here: Assisted Living Facility Business and Medical Practice Business
Get a free Home Health Care Service business plan template on our Business Plans page.
Home Health Care Services Forecast
The home health care service industry has been experiencing a steady surge in demand, largely driven by demographic and societal shifts. Recent statistics show that the population aged 65 and over has increased by 9.4%, contributing significantly to the growing need for personalized, accessible care solutions. At the same time, there is a clear shift in patient preferences, with more individuals choosing to receive medical and supportive care in the comfort of their own homes rather than in institutional settings such as hospitals or nursing facilities. This trend, often referred to as aging in place, reflects a growing desire for patient independence. However, despite this growth, the industry faces notable challenges, including workforce shortages in 43 states and complex coverage structures. As a result, providers must balance increasing demand with the need to sustain high-quality care delivery amid these operational hurdles.
Looking ahead, advancements in technology are reshaping home health care services. Telehealth, remote patient monitoring, and AI-driven tools are becoming integral to care delivery. This has allowed providers to enhance efficiency and empower patients to take an active role in their treatment. Additionally, the shift toward value-based care places greater emphasis on quality outcomes rather than service volume, encouraging more personalized and effective care models. Moving forward, agencies that strategically invest in advanced technologies and adapt to regulatory and workforce challenges will be well-positioned for sustainable growth.
Here are some additional business resources specific to the industry:
- National Alliance for Home Care – Resources
- American Medical Association – Health Care spending
- Medicare – Coverage details
Home Health Care Services Overview & Trends
NAICS Code: 621610, SIC Code: 8082
Home health care services continue to grow as more consumers choose in-home services over traditional health care models for convenience and affordability. Ongoing industry consolidation has increased the range of specialized services available to patients, which has lead to a predicted growth of 5.5% in employment within the industry.
This home health care services summary is from First Research which also sells a full version of this 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 Amedisys, Apria, CenterWell Home Health, and Lincare (all based in the US), along with Cera Care (UK), LVL Médical (France), and SE Health (Canada).
- Expenditures on home health services vary significantly from country to country, according to the Organisation for Economic Co-operation and Development (OECD). Most Europe countries spend a significant amount for outpatient care, which include home-based curative and rehabilitative care and ancillary services. Funding sources include private pay, taxation (in those countries with nationalized health care systems), compulsory or voluntary insurance, and charitable contributions or funding from nongovernmental organizations.
- The US home health care industry includes about 34,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $85 billion.
- Competitive Landscape: Health reform efforts are driving down reimbursement for medical services, including home health care, and payments are increasingly based on whether providers meet quality standards. At the same time, care is being pushed into lower-cost settings, giving home health agencies an advantage as they provide an alternative to costly nursing home and hospital care. Populations are aging in nations around the globe, and elderly residents increasingly prefer to stay in their homes.”
Home Health Care Technology
Technology is becoming an increasingly important segment of the home health care industry. According to a study by the U.S. Center for Disease Control and Prevention (CDC), the prevalence of chronic diseases has risen over the past two decades and is projected to continue increasing. As a result, home health care technologies are playing a greater role in disease management. For example, glucose monitoring devices are now commonly used to help individuals manage diabetes, a condition that affects nearly 29.2% of Americans aged 65 and older. Here is information on new technology additions to home health care industry:
- Advance tools & digital technologies for home care – American Hospital Association
- Recent Trends in Technology – list of techs to assist patients and caregivers.
- Aging in place with Assistive Technology – survey responses on the benefits of health tech.
- How Technology Is Streamlining Care Operations – examines the impact of various technologies on home health care services.
For more information on technology, visit our AI for small business Guide.
Home Health Care Customer Demographics
Major customer segments for Home Care Providers are reported by IBIS, which offers full versions of the report for purchase here.
- The Home Care Providers market is segmented by industry revenue.
- Medicare is the largest contributor at 38.8% of industry revenue and covers about 3.5 million beneficiaries on an annual basis.
- Private Insurance payers account for 21.8% of the industry’s revenue, where reimbursements include payments received from commercial health plans.
- Following closely behind private insurance, Medicaid accounts for 21.7% of the industry’s revenue. This has primarily served low-income seniors and individuals with disabilities who need assistance with daily activities and non-medical home care.
- Other sources of revenue include grants and donations, government programs and workers’ compensation payments, which account for 19.6% of the industry’s revenue.
- Out-of-pocket payments make up the remaining 5.1% of the industry’s revenue.
Additional information on home health care demographics can be found from a variety of trade associations and publications, including:
- Fact Sheet: Aging in the United States – PRB
- Facing Financial Ruin as Costs Soar for Elder Care – KFF News
- Most Older Adults Cannot Afford In-Home or Assisted Living Care – Harvard
Home Health Care Business Startup Costs
Starting a home health care service requires a solid understanding of the startup costs involved in order to develop a sound financial plan.
According to a cost breakdown from Small Business Chron, the following is the cost to start a home health care service:
- “Ultimately, be prepared to spend a minimum of $15,000 to $20,000 in start-up costs just to get through accreditation. This number goes up the longer your licensure period is extended. Aside from labor costs and registration costs, you must obtain the proper insurance policies. These include general liability, professional liability and potentially workers’ compensation. If you transport patients, you also need commercial auto policies. Insurance costs vary from state to state but could be anywhere from $1,000 to $5,000 annually.”
Additional home health care startup cost information can be found at:
- How to Start a Home Healthcare Agency Business from Profitable Venture
- “Obtaining proper license would cost $1,500
- Setting up your entity would cost $1,500
- Uniforms for your staff would cost $2,000
- Insurance coverage would cost $3,000
- Hiring and training of caregivers would cost $3,000
- Marketing for clients would cost $2,000″
- Home Care Business Startup Costs from Entrepreneur Magazine:
- Total Startup costs: $2,000 – $10,000
- Franchises available? No
- Senior Home Care Agency Business Startup Costs from Entrepreneur Magazine:
- Total Startup costs: $2,000 – $10,000
- Franchises available? Yes
Home Health Care Services Business Plans
The following are sample home health care business plans for reference. For additional business plan samples, visit our Business Plans Guide.
- Home Healthcare Agency Business Plan – Profitable Venture
- Non-Medical Home Care Business Plan – Profitable Venture
- Home Health Care Services Business Plan – BPlans
- Home Healthcare Business Plan – Business Plan Template
Home Health Care Services Business Associations
Trade associations often are excellent sources of information on an industry. Here are some relevant home health care industry associations:
- National Association for Home Care
- Home Care Association of America
- American Association for Homecare
- Research Institute for Home Care
- National Association of Health Care Assistants
- Aging Life Care Association
- American Society on Aging
- American Geriatrics Society
- American Association of Retired Persons
Home Health Care Business Regulations
This section is intended to provide a general awareness of home health care business regulations and agencies to consider when starting your business. Check with your state and municipality for rules and regulations that may impact the business in your area.
- U.S. Department of Health and Human Services – The HIPAA Privacy Rule
- U.S. Centers for Medicare & Medicaid Services – Hospice Regulations & Notices
- Occupational Safety and Health Administration – Overview & Resources
Home Health Care Services Business Publications
- Home Care Magazine
- Home Health Care News
- Modern Health Care
- Provider Magazine
- Health Tech Magazine
- Hospice News
- Home Health Care Management & Practice
For resources to help market your home health care start up, visit our Digital Marketing Guide, Social Media Marketing Guide, and our Website Design Guide.
Home Health Care Employment Trends
Understanding trends in your industry is important when opening a home health care service. A critical component as a home health service grows is hiring qualified help. The following are insights from the Bureau of Labor Statistics Occupational Outlook Handbook into Home Health and Personal Care Aides. A more specific breakdown of other home health related occupations is available from the Bureau of Labor Statistics.
- “Pay: The median annual wage for home health and personal care aides was $34,900 in May 2024. The median wage is the wage at which half the workers in an occupation earned more than that amount, and half earned less. The lowest 10 percent earned less than $25,600, and the highest 10 percent earned more than $44,190. Most aides work full-time, although part-time work is common. They may work evening and weekend hours, depending on their clients’ needs. Work schedules may vary.
- Work Environment: Many home health and personal care aides work in clients’ homes; others work in group homes or care communities. Some aides work with only one client, while others work with groups of clients. They sometimes stay with one client on a long-term basis or for a specific purpose, such as hospice care. They may work with other aides in shifts so that the client always has an aide.
- Job Outlook: Employment of home health and personal care aides is projected to grow 17 percent from 2024 to 2034, much faster than the average for all occupations. About 765,800 openings for home health and personal care aides are projected each year, on average, over the decade. Many of those openings are expected to result from the need to replace workers who transfer to different occupations or exit the labor force, such as to retire.”
Additional Small Business Resources
Already in business or thinking about starting your own small business? Check out our various small business resources:
- View more business reports here: Small Business Snapshots
- View small business help topics here: Small Business Information Center
- View industry-specific research here: Market Research Links
- View business plans samples here: Sample Business Plans
Remember, you can also receive free professional business advice and free or low-cost business training from your local Small Business Development Center!
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