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Is The Home Health Care Sector Facing Massive and Accelerated Consolidation?

The pace of Home Health Care industry consolidation is likely to speed up as large companies snap up smaller players to increase their scale and achieve infrastructure/resource efficiency

The industry is focused on driving bottom-line profitability within a new era of regulatory requirements and limited reimbursements

Increased Amounts of Low Reimbursement Rates Will Be A Core Driver of Accelerated Consolation

CMS estimates that the latest reimbursement rates will result in Medicare paying out a total of $85 million more to Home Health agencies in 2025 vs. 2024 —only a 0.5% increase year over year— not nearly enough to offset inflation, wage increases and technology investments which are all driving up the cost of care

The Importance Of New Technology And Data Drive Efficiency

Faced with increasing financial challenges, Home Health agencies are leveraging new technologies to expand the services they offer and help them scale up:

  • Improved data collection and analysis enabling companies to better meet regulatory reporting requirements
  • Enhanced ability to monitor, assess, and evaluate patients, thereby providing more complex in-home treatments for higher acuity patients
  • Better market-demand predictions to effectively align their hiring volumes to meet anticipated patient demand
  • Identifying, recruiting, and training future caregiver employees

Employee Turnover

The median turnover rate for professional caregivers has continued to rise. With nearly four out of five caregivers leaving their jobs within the first year, replacing these providers is becoming increasingly difficult and more expensive as home healthcare demand is expected to reach an 8% CGAR rate over the next 5 years

Rellevate’s Pay Any-Day Technology Platform helps cash-strapped employees by giving them the ability to receive a portion of their wages whenever they need

Pay Any-Day is one of the fastest growing employee benefits in the U.S. today and is proven to help drive:

  • 36% increase in employee retention
  • 75% Increase in hiring dynamics
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