The Home Healthcare Industry has Many Changes & Challenges Ahead

Michelle Seitzer

No doubt about it: The home healthcare industry is booming right along with the baby boomers.

The economic downturn, healthcare reform legislation, the changing preferences of seniors in America (or perhaps, the greater availability of long-term care services in settings other than nursing homes),  all have contributed to tremendous growth in this sector. (You can read about Home Care: Then & Now at Throw in the huge numbers of boomers and seniors in need of services over the next few decades, and I’d say the future of home healthcare looks bright.

Bright future fo the home health industryYet there are still many challenges facing the industry. In this article from HealthcareIT News, Frank Morgan, managing director at RBC Capital Markets in Nashville, believes that post-acute care providers and other healthcare companies with “predictable volumes” will do well. But, he says, “On the negative side, home healthcare still faces formidable challenges this year.”

The industry’s rapid growth, increasing demand for services, and great diversity (home care spans a huge continuum of care options, from skilled medical care to non-medical companion services to hospice care, with many variations in between) undoubtedly creates complex challenges and rich opportunities.

Regulating home healthcare agencies

Challenges like how to appropriately regulate home care agencies are certainly at the top of the list.  That’s because they are difficult to standardize given that some agencies provide only skilled medical services, others provide non-medical care, and some offer both. How to create and implement regulations that would be both protective of those receiving care, yet not overly restrictive for those providing it, will be a difficult balance to strike.

Yet regulations should not be the only reason that providers seek standards for quality care. Many agencies have already established a standard of excellence that they should continue to follow, regardless of new legislation or pending regulatory changes. Others could benefit from this level of accountability, but in the meantime, should consider implementing their own quality control measures to ensure that their agency stays afloat. As consumers become more aware of what sets apart those companies who provide superior home care, this self-enforcement will be crucial for longevity.

The means for reimbursement, both in terms of how the consumer pays the bill and how the agency can bill for services rendered, is also likely to change in the coming years, although as the home care industry grows and more legislation in support of aging-in-place services is passed, there is a real hope that this will be a change for the better.

Strategic planning  for home health agencies

Among these challenges, existing home health agencies have the great advantage of staying ahead of the curve as these winds of change begin to blow. Veteran providers should maximize their enviable position by studying current consumers more closely, getting a better sense of what they want and need, and establishing a commendable training program for current and future caregivers.

Professional training, though often seen as cost-prohibitive in terms of time and resources, should be a top priority for all home care agencies moving forward. Home care agencies often advertise themselves as equipped to meet a diverse array of needs, yet many of their caregivers are inexperienced in dealing with the challenges that some illnesses and injuries may present (i.e. various forms/stages of dementia, end-of-life needs, etc.). Home care agency owners and operators should seek creative means for integrating the vast universe of online and in-community resources available to them, rather than viewing training as a series of one-day workshops, week-long in-service sessions, or lunch and learn seminars.

Baby boomers will have an effect on the home healthcare industry

Consider also the assertive nature of baby boomers, who are known to be quite the opposite in demeanor as the “silent generation” preceding them (read more about Baby Boomers: The Transformation Nation at our site), and you have an industry that will be driven by the demands of the very market that will be depending on its positive growth and long-term stability. Not to mention that a majority of boomers are, or will be, caught between caring for parents, children, and grandchildren (or all of the above), and may prevail themselves of the benefits that respite care via a home health agency might offer.

Home healthcare industry changesAlso, not all boomers are in the best of health, apart from or before, after or during these intense caregiving experiences that many find themselves in. Consequently, the need for home care services (maybe PT after a knee replacement surgery, or light housekeeping help during chemo treatments) is likely to increase. Home care providers would do well to market to/educate the public about these specific needs, as many boomers are not even aware of what services are available to them and not just to their senior parents.

With the threat of dementia always looming – impacting boomers and seniors in equally devastating ways – the need for tailored home care services to meet these needs (and prevent the inevitable: caregiver burnout) will certainly grow. Again, specialized training in all aspects of dementia care will serve providers well to keep ahead of the competition.

Clearly we should expect many changes – positive and negative, exciting and disappointing – to this exploding industry in the coming years. There will be victories and defeats for businesses and for consumers. Sometimes, these extreme pressures force an industry out. That will not be the case here.

In some cases, assisted living communities and other congregate living settings are integrating home care services into their roster of amenities, as per the 2011 Top 10 Senior Housing Trends.

Yes, changes are in store, but you can bet that home care is not going anywhere, as AARP studies affirm that well over 90 percent of 50+ Americans prefer to stay in their homes as they age. And, if you ask the baby boomers/seniors utilizing or considering the services, that’s a comforting thing. Ask the executives, business owners and employees of the home healthcare industry, and they will agree, although they’re likely prepared for a wild ride.

Who knows what the future of home healthcare will look like, but it is nonetheless the industry to watch in the years to come.



Michelle SeitzerToday’s guest post comes from’s Michelle Seitzer. Before settling down as a full-time freelance writer, Michelle spent 10 years serving in various roles at assisted living communities in Pennsylvania and Maryland, then worked for several years as a public policy coordinator for the Alzheimer’s Association’s PA Chapters. She has blogged for since November 2008, and is the co-moderator of the first #ElderCareChat on Twitter, held every other Wednesday at 1pm EST. Follow her on Twitter and Facebook.



When you need proven expertise and performance

Leave a Reply

Your email address will not be published. Required fields are marked *

I accept the Privacy Policy

9 thoughts on “The Home Healthcare Industry has Many Changes & Challenges Ahead

  1. One other thing to add to this great article is the ever-increasing level of taxation and regulation of employers in general and home care employers in particular. Government treats employers as if they were cash dispensing ATMs, not only the Federal government but also some states, particularly California, New York, and some others. In California, labor laws have created a perverse environment that makes it much, much more lucrative AND EASY for employees to set up their employers for false unemployment and workers comp claims or class-action litigation than to actually work for a living.

    1. Excellent observations, Tim, although they are unfortunate ones. I do believe there is a need for fair and balanced (easier said than done) taxation and regulation, or some level or standard of accountability for employers — particularly those providing care services. But these guidelines, stipulations and endless expenses usually end up as a burden on those who truly want to provide quality care.

      Labor laws need reform too, as you suggest, but that process is equally onerous. Employees with integrity are not always readily available either.

      I’d be interested in hearing your ideas on how best to solve/approach some of these issues. We all need to be engaging in dialogue about them more frequently, in order to spur action and advocate for something better than what we have. Would you agree?

      I really appreciate your comments, Tim, and thank you for reading the article.

  2. Thanks for the comment, Michael. Yes, it’s harder for working family caregivers to make adequate time for caregiving. Home health will continue to be a growing/in-demand resource, I’m sure.

  3. I would like to start my own Non-medical Homecare Agency. What do I need to do to start my own Home Healthcare Agency?

    1. The steps needed and the requirements and regulations to be addressed to start a Home Healthcare Agency typically depend on the kind of services to be planned and the location/State of the service area. Please contact us directly to review the circumstances and your outcome expectations. The Fox Group, LLC at 909-931-7600 extension 103.