The Growing Need for Home Healthcare

Due to modern medical advances and better health education and awareness, people are living longer and more productive lives. Nevertheless, advancing age brings with it inevitable health challenges. In their pursuit to grow old gracefully, the elderly are continually seeking ways to maintain their independence and avoid the costly and often depressing entry into a nursing home. As a result, the market for home healthcare services has emerged as an alternative to nursing home care or extended hospital stays. The home healthcare industry provides a simple, graceful, and cost-effective solution and is one of the fastest growing segments in healthcare, driven by a variety of demographic, social, and economic factors.

A key demand driver for home healthcare and nursing services is the continued aging of the U.S. population. The U.S. is at the front-end of a significant demographic evolution as the Baby Boom generation ages. In 1994, approximately one in every eight people in the U.S. was age 65 or older; by 2030, nearly one in every five people will be age 65 or older. According to the latest census data in 2000, there were 35 million people in the U.S. over the age of 65, but this number is expected to roughly double to 73 million by 2030. More importantly, the number of people age 85 or older will grow at an even faster rate. In the 2000 census, there were approximately 4 million people in the U.S. over the age of 85, but this number is expected to grow to over 9 million by 2030, a 126% increase. To provide a basis for comparison, the general population under the age of 65 is projected to grow only 7% during this same time period. Because of improved health care, medicines, and technology, average life spans for men and women are increasing.

Another key factor driving the need for home healthcare and nursing services to this population demographic is that people in this age bracket often live alone and require assistance with everyday tasks, or simply desire companionship and social interaction. According to data compiled by the U.S. Census Bureau, 14% of men between the ages of 65 and 74 and 20% of men between 75 and 84 lived alone. These statistics are even more dramatic for women. Nearly 31% of women between the ages of 65 and 74 and 47% of women between 75 and 85 lived alone¹. In addition, many of the people in this demographic also have some degree of disability. A person with a disability is someone who has difficulty in performing functional tasks or activities of daily living (“ADL”), such as bathing, cooking, dressing, shopping, housework, or getting around outside the home. Data from the 2000 Census Supplementary Survey indicates that 13% of people 50 and older have at least some limitation in mobility or self-care. Moreover, in the population 65 and older, the disability rate increases to 20% and for those 85 and older, the disability rate is 56%. The probability of experiencing disabilities also remains extremely high. By some estimates the probability of a 65-year old becoming disabled with respect to at least two ADLs or of being cognitively impaired is 44% for men and 72% for women.  Given the preponderance of women in this age group, this represents an average of 68% for all people age 65 and older².