The U.S. nursing care market was valued at USD 475.15 billion in 2023 and is expected to reach USD 692.19 billion by 2029, growing at a CAGR of 6.47%. The growing burden of various chronic diseases requires effective monitoring and care by healthcare professionals. Utilizing nursing care services improves patient outcomes, nurse & physician satisfaction, and patient satisfaction and community health. The U.S. nursing care market growth is on the rise due to multiple factors, including the rising baby boomers, the aging population, the increased healthcare expenditure, and the increased preference for independent living.
MARKET TRENDS AND OPPORTUNITIES
Adoption of Telehealth Services
Telehealth makes it easier for many people to receive the care they need, even living far from healthcare facilities. As such, nurses must be prepared to interpret data to assess patient needs, evaluate patients’ responses to treatment, and provide education about diagnoses and treatment plans. This requires a good understanding of remote technologies and the ability to provide care in virtual environments. Patients and providers have taken advantage of this to maintain relationships and care plans throughout the pandemic, and there’s no sign of that stopping. Several regulations increased the flexibility of Medicare reimbursement for telehealth visits, causing experts to estimate the evolution of telehealth may increase rapidly in 2023.
Rising Healthcare Collaborations
Various initiatives public and private institutions take to cope with the nursing shortage and increase the number of nursing professionals may drive the U.S. nursing care market over the forecast period. For instance, in November 2022, Chamberlain University, the nation's biggest nursing school, announced starting a home health specialty effort with funds from the American Nurses Foundation's Reimagining Nursing Initiative. Further, online nursing programs allow students to complete coursework and clinical requirements from the comfort of their own homes, making it easier for working professionals and others with busy schedules to earn a degree in nursing.
INSIGHTS BY SERVICE TYPE
The U.S. nursing care market by service type is segmented into skilled nursing, home healthcare, assisted living, and others. The skilled nursing segment held the most prominent share of the U.S. market in 2023. The segmental growth is due to the rise in the geriatric population, coupled with increasing chronic diseases and age-associated diseases creating new healthcare opportunities. The skilled nursing facilities vary from state to state; some states have over 1000 SNFs, others have fewer than 30, and the overall average of SNFs per state is 367. Also, it is observed that when compared to hospitals, skilled nursing facilities (SNFs) offer high-quality care services at a much lower cost, creating enormous demand among investors. Furthermore, hospital-based SNFs provide good quality care and better discharge outcomes owing to specialization and joint production. Joint production has the benefit of better communication among nursing home staff and hospitals through the health IT system.
INSIGHTS BY PAYMENT
The public expenditure payment segment dominated the U.S. nursing care market in 2023. Depending on the circumstances, Medicare provides reimbursement for home health services such as intermittent skilled nursing care, care provided by a home health aide, and therapy under either Part A or Part B. Furthermore, it is important for seniors and their families facing an imminent need for a nursing home to determine whether Medicare will cover at least a portion of the stay. It is observed that the Medicare program provides coverage for rehabilitation, but it does not cover long-term care. Also, it is observed that the State-based Long-Term Care Partnership Programs can help protect the assets of individuals using Medicaid coverage to pay for long-term care services.
INSIGHTS BY GENDER
The U.S. nursing care market by gender is segmented into female and male. The female segment held the most significant of the market in 2023. The rising aging population of women in the U.S. is one of the major factors that positively influenced women's preference for assisted living facilities. Further, even in their advanced years, women remain active but require assistance for their day-to-day tasks, and women outnumber men in experiencing brain-related illnesses associated with aging, such as dementia. Without specialized care, these conditions can significantly harm senior's well-being. Also, women tend to use healthcare services more frequently and proactively seek medical attention, potentially leading to earlier consideration of assisted living when the need arises.
The South region accounted for the largest U.S. nursing care market share, accounting for over 36% in 2023. In the Southern region, Florida has many nursing care facilities, which are approximately 800. Florida is home to the most aging population states in the U.S., accounting for 3,926,889 seniors aged 65 and above. This age group has better purchase power in the market, driving them to choose better-facilitated nursing homes. When considering retirement in the Southern U.S., St. Petersburg has remained a cherished choice for seniors over the years, owing to its status as a traditional retirement destination. Further, Florida and South Carolina are also the most popular retirement states. Also, the cost of living is reasonably low compared to other regions, and it is considered a moderately taxed region, making it even more opportunistic for seniors to retire.
The U.S. nursing care market has key market players that account for the major industry shares. Due to their high geographical presence, availability of expertise, and well-known brand image, they have a better market share in the region. Further, the number of mergers and acquisitions is high in the market. For instance, Ensign Group acquired 223 facilities in 10 years from 2012-2022 and added 18,443 operational beds and 5,000 senior living units to its subsidiaries. Most of the company's revenue is generated from skilled nursing. In addition, the vendors in the U.S. nursing care market are producing better innovative plans like luxury accommodations, customized living facilities, and more to attract customers.