Change is the new norm for the global health care sector and Senior care Industry. As providers, payers, governments, and other stakeholders strive to deliver effective, efficient, and equitable care, they do so in an ecosystem that is undergoing a dramatic and fundamental shift in business, clinical, and operating models.
Senior care industry is being powered by aging and growing populations, the increase of chronic diseases, intensified focus on health care quality, growing financial and quality regulations, empowered consumers and innovative treatments and technologies.
All of which is leading to rising costs and an increase in spending levels for care provision, infrastructure improvements, and technology innovations.
Population aging is accelerating rapidly worldwide. Increased life expectancy — up from an estimated 72.3 years in 2014 to 73.3 years in 2019 — will bring the number of people aged 65+ worldwide to over 604 million, or 10.8 percent of the total global population
The older population, persons 65 years or older—numbered 46.2 million in 2014. They represented 14.5% of the U.S. population, about one in every seven Americans. By 2060, there will be about 98 million older persons, more than twice their number in 2014.
Aging population demonstrates a growing market for business and reports indicate that this population is growing. This shows that senior care and home health care business has future potential for years to come.
Health care providers and payers, both public and private, are seeking to address the cost curve with innovative approaches to managing the health of a population. Providers are responsible for the full spectrum of health needs for a population.
Growing Senior Care Industry
Senior care industry is a growing industry. All the below mentioned indicators shows that this industry that will continue to grow. The major segment of customers is considered senior individuals. The statistics also show market gaps and opportunities.
- As of now, annually 8,357,100 people receive support from the 5 main long-term care service, home health agencies (4,742,500), nursing homes (1,383,700), hospices (1,244,500), residential care communities (713,300) and adult day service centers (273,200).
- By 2050, the number of individuals using paid long-term care services in any setting (e.g., at home, residential care such as assisted living, or skilled nursing facilities) will likely double from the 13 million using services in 2000, to 27 million people. This estimate is influenced by growth in the population of older people in need of care.
- Of the older population with long-term care needs in the community, about 30% (1.5 million persons) have substantial long-term care needs (three or more ADL limitations). Of these, about 25% are 85 and older and 70% report they are in fair to poor health.
- Among the population aged 65+, 69% will develop disabilities before they die, and 35% will eventually enter a nursing home.
- 3 million Family caregivers provide personal assistance to adults (aged 15+) with a disability or chronic illness.
- 82 to 7.22million people (family, friends and neighbors) provide care to a person (65+) who needs assistance with everyday activities.
- 9 million Informal caregivers provide care to someone aged 50+ with dementia.
Reasons behind the growth of Senior care industry & health tourism industry
The biggest reasons behind encouragement and immense growth of the health tourism industry are:
- High cost of treatment in home country and high quality low cost treatment offered by health tourism destination
- Long waiting lists in home country and opportunity to get medical treatment within a week at health tourism destination
- To make use of highly sophisticated equipment’s and technology provided by the health tourism destination
- To reduce stress and rejuvenate body, mind and soul by taking alternative forms of medicines which have no side effects
- Taking the advantage of tourism while treatment as the patients can forget about their illness and can relax in a health tourism destination
- Ease and affordability of international travel and favorable exchange rates
- Better hospitality services provided by the health tourism destination
- Patients feel like they are at home even if they are treated for a serious disease
- Availability of the services of highly skilled doctors and high standards of care
Reasons behind the growth of home care industry
Home care industry is seeing such accelerating growth, including:
- Increase in need. Millions of people are reaching an age where they will need some sort of home care, increasing the expense of the industry. With so many people in need, the industry will respond by growing to accommodate the demand.
- Many people are realizing that home care is a much more affordable route to providing people with the assistance they need. This is especially true when compared with such things as assisted living facilities and nursing homes.
- Rather than taking the elderly or sick out of the home for appointments, the home care industry can bring many of those to the person. This provides a convenient route to getting people the assistance they need.
Those interested in working in the home care field can take comfort in knowing that the industry is seeing a lot of growth, so jobs will be plentiful. Home care agencies will also grow as they will be able to hire additional people to meet the growing demand for care.
While most people associate increasing health care costs with negative situations — such as administrative waste, rising insurance premiums, expensive care for chronic diseases — increasing costs can also signal positive developments such as amazing new medical treatments and innovative technologies that may one-day cure diseases that were formerly incurable.