|By Marketwired .||
|January 2, 2013 04:08 AM EST||
Revenues for the elder care services industry (skilled nursing, home health care, social services, continuing care, and assisted living) are expected to grow 5.2 percent per year through 2016 to $319.5 billion. Advances will be driven largely by demographic changes in light of increasing life expectancy, which is contributing to the rising number of individuals in the older population segments. Growth will be further boosted by the large, post-World War II "baby boom" generation entering its retirement years. Gains will also be spurred by a recovery in the economy and the housing market, enabling older adults to more easily finance their care. Further growth will be restrained by continuing efforts at the state and federal levels to curb Medicaid and Medicare expenditures, often by either limiting reimbursements or by directing patients to less expensive forms of care. Elder care service providers compete functionally with Informal caregivers, typically family members; however, a growing number of older adults either do not have family members who are able to care for them or simply prefer using professional care. These and other trends are presented in Elder Care Services, a new study from The Freedonia Group, Inc., a Cleveland-based industry market research firm.
In 2011, skilled nursing facilities accounted for the largest share of elder care service revenues with 43 percent. However, home and community based services (e.g., home health care, social services, assisted living) are projected to achieve faster growth. Advances for home and community based services will be driven by continued state and federal efforts to shift Medicaid payments away from skilled nursing to more cost effective community based services. Additionally, many older adults prefer to age in place, remaining in their homes as long as possible. Continuing care revenues will grow strongly, benefiting from a rebound in the housing market as many older adults sell their homes to pay for the steep entry fees of continuing care facilities. For-profit entities accounted for 66 percent of elder care service revenues in 2011, benefiting from their dominance in the large skilled nursing segment and leading position in the home health and assisted living markets as the chain and franchise business models develop. Nonprofits (e.g., charitable organizations and government related agencies) account for the larger share of revenue in the continuing care and social services markets.
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About Freedonia Group Inc
The Freedonia Group is a leading international industrial research company publishing more than 100 studies annually. Since 1985 we have provided research to customers ranging in size from global conglomerates to one-person consulting firms. More than 90% of the industrial companies in the Fortune 500 use Freedonia Group research to help with their strategic planning. Each study includes product and market analyses and forecasts, in-depth discussions of important industry trends, market share information and profiles of the leading industry players.
MarketResearch.com is the leading provider of global market intelligence products and services. With research reports from more than 720 top consulting and advisory firms, MarketResearch.com offers instant online access to the world's most extensive database of expert insights on global industries, companies, products, and trends. Moreover, MarketResearch.com's Research Specialists have in-depth knowledge of the publishers and the various types of reports in their respective industries and are ready to provide research assistance. For more information, call Cindy Frei at 240.747.3014 or visit http://www.marketresearch.com.
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