Forecast Period | 2025-2029 |
Market Size (2023) | USD 30.04 Billion |
CAGR (2024-2029) | 7.37% |
Fastest Growing Segment | Home Hospice Care |
Largest Market | Mid-West |
Market Size (2029) | USD 46.54 Billion |
Market Overview
The United State Hospice Market was valued at USD 30.04
billion in 2023 and is anticipated to project robust growth in the forecast
period with a CAGR of 7.37% through 2029.
Hospice is a specialized form of healthcare that prioritizes comprehensive care, comfort, and support for individuals nearing the end of life due to terminal illnesses. The primary objective of hospice care is to enhance the quality of life for both patients and their families during this difficult period. It addresses not only the physical needs of patients but also their emotional, psychological, and spiritual well-being.
As the annual mortality rate in the United States rises—largely due to an aging population and the prevalence of chronic conditions such as cancer and cardiovascular disease—the demand for hospice services is expected to increase. Hospice professionals engage with patients and families to facilitate informed decision-making regarding end-of-life care preferences. This includes advance care planning, discussing medical interventions, and honoring personal wishes.
For instance, the Centers for Medicare & Medicaid Services (CMS) announced its Fiscal Year 2023 Hospice Payment Update in July 2022, which included an increase of $825 million (3.8%) in hospice payments compared to 2022. Beyond Medicare and Medicaid, hospice care is also covered by various private insurance companies, charities, and nonprofit organizations.
Hospice care can be provided by independent hospice organizations or through hospice programs affiliated with hospitals, nursing homes, clinics, or healthcare systems, delivering services either at the patient’s home or in dedicated hospice facilities.
Key Market Drivers
Palliative Care Integration is Driving the Demand
of the Market
Palliative care integration in hospice refers to
the incorporation of palliative care principles and practices into the broader
framework of hospice services. Palliative care is an approach that focuses on
providing comprehensive care to patients with serious illnesses, aiming to
improve their quality of life by addressing physical, emotional, psychosocial,
and spiritual needs. Integrating palliative care into hospice enhances the
holistic and patient-centered approach to end-of-life care. Palliative care in
hospice ensures that patients receive comprehensive support tailored to their
specific needs. This can include pain and symptom management, emotional and
psychological support, and assistance with end-of-life decision-making.
Integrating palliative care principles early in the hospice journey allows
patients to benefit from these services well before they transition to the
final stages of life. This can improve patient comfort and quality of life over
an extended period. Palliative care emphasizes effective pain and symptom
management to alleviate suffering and enhance the patient's comfort. This focus
aligns with the goals of hospice care to provide relief from distressing
symptoms. Palliative care encourages open and honest communication between
patients, families, and healthcare providers.
This ensures that patient
preferences, values, and goals are understood and respected throughout the
end-of-life process. Palliative care addresses the emotional and psychological
needs of patients and their families. Integrating these aspects into hospice
services can help patients and families cope with the challenges of serious
illness and grief. Palliative care recognizes the importance of involving
family members in the care process. In hospice, integrating palliative care
principles ensures that families are supported emotionally and practically
during their loved one's end-of-life journey. Palliative care integration
emphasizes coordination among various healthcare providers involved in a
patient's care. This collaboration ensures a seamless transition from curative
treatments to comfort-focused hospice care. Palliative care promotes shared
decision-making, involving patients and families in discussions about treatment
options, care goals, and advance care planning. This collaborative approach
aligns with the patient-centered focus of hospice. Integrating palliative care
principles extends bereavement support to families even after the patient's
death. This ongoing support helps families navigate the grieving process. The
integration of palliative care within hospice ultimately enhances the quality
of life for patients and families. It aims to help patients achieve their
goals, manage symptoms, and experience meaningful moments during their
end-of-life journey. Palliative care integration in hospice recognizes that
patients may benefit from palliative care services well before entering the
final stages of life. This factor will help in the growth of United States
Hospice Market.
Rise in the Frequency of Terminal Illness Will
Drive the Demand of the Market
Terminal illnesses are medical conditions that have
progressed to a point where they are considered incurable and expected to
result in the patient's death. These illnesses typically have a poor prognosis,
meaning that the disease has advanced to a stage where curative treatments are
unlikely to be effective. As the number of individuals with terminal illnesses
rises, the overall patient population that could benefit from hospice care
would increase. This could lead to higher demand for hospice services to accommodate
these patients and their families. Patients diagnosed with terminal illnesses
are generally given a limited life expectancy, often estimated to be a period
of six months or less. Terminal illnesses are diseases for which there are no
known curative treatments. Medical interventions may focus on symptom
management and improving the patient's quality of life. This illness usually
reaches an advanced stage where the disease has progressed significantly. This
progression may involve the spread of the illness to other parts of the body or
the failure of multiple organ systems.
Patients with terminal illnesses are
typically expected to live for a relatively short period, often six months or
less. However, these estimates can vary widely based on the specific disease,
individual patient factors, and available medical treatments. Examples of
terminal illnesses include advanced stages of certain cancers, end-stage heart
failure, advanced respiratory diseases, late-stage neurodegenerative diseases
like amyotrophic lateral sclerosis (ALS), and some advanced stages of chronic
diseases such as HIV/AIDS. The Centers for Disease Control and Prevention
(CDC) reported in November 2022 that approximately 6% of adults in the United
States have chronic diseases, while approximately 4% of adults have two chronic
diseases or more. Healthcare providers and systems would need to allocate
resources to meet the growing demand for hospice services. This might involve
increasing the number of hospice facilities, home-based care teams, and trained
healthcare professionals specializing in end-of-life care. As the prevalence of
terminal illnesses rises, there could be greater awareness within communities
about the availability and benefits of hospice care. This could lead to more
informed decisions and increased utilization of hospice services. The rise in
demand for hospice services could draw more attention from policymakers and
healthcare organizations. This could result in further support, funding, and
regulatory measures to ensure quality end-of-life care. This factor will
accelerate the demand of United States Hospice Market.
Rising Geriatric Population Has Increased the Demand
of the Market
The rising geriatric population is a significant
driver of the increasing demand for hospice services. As the elderly population
grows, so does the need for specialized end-of-life care and support. With
advanced age comes an increased risk of developing chronic and terminal
illnesses such as cancer, heart disease, and neurodegenerative disorders. These
conditions often require palliative and hospice care to manage symptoms and
enhance the patient's quality of life. Older adults often have multiple medical
conditions and complex healthcare needs. The prevalence of individuals aged
65 and over in the United States is projected to increase. The market is
projected to expand due to the increasing prevalence of cancer, Alzheimer's
disease, kidney disease, respiratory disease, and cardiovascular disease among
the elderly. Hospice care is well-equipped to provide comprehensive,
interdisciplinary care that addresses the diverse physical, emotional, and
psychosocial needs of elderly patients.
Many seniors prefer to receive
end-of-life care in the comfort of their own homes. The rising geriatric
population drives the demand for home-based hospice services that cater to this
preference. Advances in medical treatments and technology have extended the
life expectancy of older adults. However, these treatments may not always provide
a cure, and hospice care becomes crucial to ensure a comfortable and dignified
end-of-life experience. As individuals age, the emphasis often shifts from
curative treatments to focusing on the quality of life. Hospice care aligns
with this goal by prioritizing symptom management, emotional support, and
patient comfort. Hospice care respects the dignity, autonomy, and personal
preferences of elderly patients. This approach resonates with the desires of
many seniors to have a say in their care and maintain control over their final
stages of life.
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Key Market Challenges
Ethical Dilemmas
Ethical dilemmas are a significant challenge in
hospice care. The complex nature of end-of-life care, coupled with the diverse
needs and values of patients, families, and healthcare providers, can give rise
to ethical considerations that require careful navigation and decision-making. Balancing
effective pain management with the potential risks of over-sedation can be
challenging. Healthcare providers must make decisions that prioritize relieving
a patient's pain while also maintaining their comfort and consciousness. Deciding
when and how to withhold or withdraw life-sustaining treatments can be
ethically complex. Patients, families, and healthcare providers may have
differing perspectives on when to transition from curative care to palliative
or hospice care. Determining whether to provide or withhold artificial
nutrition and hydration can be ethically fraught. Ensuring patient comfort
while respecting their autonomy and values is a delicate balance. Deciding when
further medical interventions are futile and when to shift the focus to comfort
care can be ethically challenging. Providers must consider the likelihood of
treatment success and the patient's overall well-being. Ethical dilemmas can
arise when patients are unable to provide informed consent due to their
condition. Healthcare providers must consider what treatments align with the
patient's known wishes or best interests. In locations where assisted suicide
or euthanasia is legally permissible, healthcare providers may face ethical
dilemmas about participating in these practices or ensuring that patients'
wishes are respected. Communicating terminal diagnoses and prognosis to
patients can be difficult. Healthcare providers must balance the patient's
right to know with their emotional well-being. Ethical dilemmas can arise when
patients have not clearly expressed their wishes in advance care directives.
Healthcare providers must make decisions based on the patient's best interests.
Public Perception and Stigma
Public perception and stigma are challenges that
the hospice industry faces. Despite the important role that hospice care plays
in providing comfort and support to individuals at the end of their lives,
there are still misunderstandings and misconceptions that can lead to
hesitation or resistance when considering hospice services. Many people
associate hospice with death and dying, which can evoke fear and discomfort.
Misconceptions about hospice, such as believing it's only for the last few days
of life or that it hastens death, can deter individuals from seeking the care
they could benefit from. Some individuals and families may perceive entering
hospice care as "giving up" on fighting the illness. This stigma can
prevent timely access to hospice services, potentially leading to unnecessary
suffering and a lower quality of life. Cultural or religious beliefs may impact
how individuals view end-of-life care and death. Stigmas or taboos around
discussing death openly may hinder open conversations about hospice options and
advance care planning. Many people are not familiar with the concept of hospice
care or its benefits. A lack of understanding about the holistic nature of
hospice services can contribute to apprehension and reluctance. Hospice is
often associated with the end of life, and some individuals might believe that
choosing hospice means giving up hope. Educating the public about how hospice
focuses on improving the quality of life can help address this perception.
Negative perceptions and stigmas can lead individuals to delay seeking hospice
care until the very end of life. This delay can impact the effectiveness of
symptom management and emotional support. Stigma around discussing death and
dying may make it difficult for families to openly cope with their grief and
loss. This can hinder the healing process and prevent individuals from seeking
bereavement support.
Key Market Trends
Specialized Programs
Hospice care has evolved
to address the diverse needs of patients and their families, leading to the
development of specialized programs that cater to specific populations and
circumstances. These specialized programs enhance the quality of care and support
provided during the end-of-life journey. Pediatric
hospice is designed to provide specialized care for children with terminal
illnesses. It focuses on addressing the unique medical, emotional, and
psychosocial needs of pediatric patients and their families. Perinatal hospice supports families facing a
terminal diagnosis for their unborn child. It provides emotional support,
medical guidance, and counseling to help families navigate this difficult
journey. These programs offer
specialized care for military veterans at the end of life. They often include
services that recognize and honor veterans' military service and provide
tailored support. Specialized
programs address the unique challenges of providing hospice care to patients
with dementia and Alzheimer's disease. These programs focus on symptom
management, communication strategies, and supporting families. Some hospices offer holistic and integrative
care that includes complementary therapies such as music therapy, art therapy,
and mindfulness practices to enhance the patient's well-being. These programs focus on supporting patients
who are transitioning from curative treatments to hospice care. They provide a
smooth transition and help patients and families adjust to the change in care
goals.
Segmental Insights
Type Insights
In 2023, the United State Hospice
Market was dominated by the routine home care segment and is
predicted to continue expanding over the coming years. There are a few
reasons for this, like good payment rules, better comfort, regular visits from
licensed nurses, doctors, and assistants, and so on. Plus, they get to benefit
from a company, family help, ongoing care and more. Most of the money in RHC
comes from the company. Medicare is spending more and more money on RHC.
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Regional Insights
The Midwest region has established itself as the
leader in the United State Hospice market. For instance, VITAS Healthcare subsidiary Chemed
Corporation opened two new in-patient hospice facilities in Florida in February
2022. The new hospice facilities are expected to provide services to an
additional 900 patients per year. The Midwest has a large population of aging individuals, which is a primary demographic for hospice care. As the population ages, the demand for hospice services increases, leading to significant growth opportunities for hospice providers in the region. Many of the earliest and most innovative hospice programs in the U.S. were established in the Midwest. These pioneering institutions laid the groundwork for the development and expansion of hospice care in the region.
Recent Developments
- In June 2024, the Indiana-based Center for Hospice Care (CHC) launched a new palliative care program, branded as Kaleidoscope. This program is tailored to deliver comprehensive, interdisciplinary palliative care directly to patients in their homes. The care model integrates services from nurse practitioners, palliative care nurses, community health workers, spiritual care providers, and volunteers.
- In November 2023, The Pennant Group Inc. completed the acquisition of Guardian Hospice and Guardian Hospice of Oklahoma.
- In March 2023, VITAS Healthcare collaborated with WellSky to enhance its operations by adopting the WellSky Hospice & Palliative solution, driving innovation and efficiency within its services.
- In 2023, WorldView
collaborated with the Care Coordinations team to develop a solution to
revolutionize home health and hospice care provision through the
integration of automation and patient involvement. The integration aims to simplify communication between providers about their patients, allowing them to quickly engage with one another and discuss the plan of care and next steps.
Key Market Players
- Kindred
Healthcare Inc. (Knight Health Holdings, Inc.)
- Amedisys Inc.
- LHC
Group, INC.
- Brookdale
Senior Living, Inc
- Chemed
Corporation
- Crossroads
Hospice LLC
- Seasons
Hospice & Palliative Care
- Accentcare,
Inc.
- Heart To
Heart Hospice
- Oklahoma
Palliative & Hospice Care
|
By Type
|
By Location
|
By Diagnosis
|
By Region
|
|
•
Routine Home Care
•
Continuous Home Care
•
Inpatient Respite Care
•
General Inpatient Care
|
•
Hospice Center
•
Hospital
•
Home Hospice Care
•
Skilled Nursing Facility
|
•
Dementia
•
Circulatory/Heart
•
Cancer
•
Respiratory
•
Stroke
•
Chronic Kidney Disease
•
Others
|
• South
• Midwest
• West
• Northeast
|
Report Scope:
In this report, the United State Hospice Market has
been segmented into the following categories, in addition to the industry
trends which have also been detailed below:
o Routine Home Care
o Continuous Home Care
o Inpatient Respite Care
o General Inpatient Care
- Hospice
Market, By
Location:
o Hospice Center
o Hospital
o Home Hospice Care
o Skilled Nursing Facility
- Hospice Market, By Diagnosis:
o Dementia
o Circulatory/Heart
o Cancer
o Respiratory
o Stroke
o Chronic Kidney Disease
o Others
- Hospice Market, By Region:
o South
o
Midwest
o
West
o
Northeast
Competitive Landscape
Company Profiles: Detailed analysis of the major companies
present in the United States Hospice Market.
Available Customizations:
United States Hospice Market report with the given market
data, Tech Sci Research offers customizations according to a company's specific
needs. The following customization options are available for the report:
Company Information
- Detailed analysis and
profiling of additional market players (up to five).
United State Hospice Market is an upcoming report
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