Market Overview

Elder Care Services in the US by Service, Provider, Payment Source and Region: Forecast to 2021 - Revenues are Projected to Reach $388 Billion in 2021 -


The "Elder
Care Services in the US by Service, Provider, Payment Source and Region,
4th Edition"
report has been added to's

This industry study presents historical demand data (2006, 2011 and
2016) and forecasts for 2021 by service (skilled nursing, home
healthcare, social services, continuing care retirement communities,
assisted living), provider (for-profit, nonprofit), payment source
(Medicaid, out-of-pocket, Medicare, private insurance), and region.

The study also evaluates company market share and analyzes industry
competitors, including:

  • Amedisys
  • Brookdale Senior Living
  • Genesis HealthCare
  • HCR ManorCare
  • Kindred Healthcare
  • Life Care Centers of America
  • SavaSeniorCare
  • Sunrise Senior Living

Baby Boomers & Their Desire to Age in Place Will Shape Elder
Care Market

US elder care revenues are projected to reach $388 billion in 2021.
Gains will be supported by a variety of factors, including:

  • an aging population, particularly as the large baby boomer demographic
    advances into age cohorts that require a greater level of care
  • increasing cost of care
  • continued desire among older adults to age in place and contract for
    the professional services that enable them to do so
  • reduced stigma attached to receiving care, especially among males

Key Findings

Consumer Concerns Regarding Aging Will Continue to Shape Elder Care

Several consumer preferences and concerns are helping to shape the elder
care market:

  • The majority of consumers prefer to age in place, propelling gains in
    home-based services (e.g., home healthcare and social services).
  • Many consumers are concerned about relying on and burdening their
    families as they age, which drives them to utilize professional care
  • Concerns regarding accumulated financial resources and long-term
    access to Medicare and Medicaid differ across age groups and further
    impact expectations for elder care services.

Assisted Living, Social Services Supported by Lower Cost of
Assistance with ADLs

Skilled nursing will remain the largest elder care service segment, but
gains will be below the market average. The high cost of this
care-intensive service, coupled with the need to uproot older adults
from their homes, will continue to draw customers to community-based
options. This will benefit the smaller social services and assisted
living segments, which will see the fastest gains through 2021. Although
care is limited to socialization and help with the activities of daily
living (ADLs), these services are favored because:

  • they have lower costs relative to skilled nursing
  • they provide levels of care that are tailored to an individual's needs
  • they offer greater independence for older adults but still provide the
    care needed to keep them safe

The relatively limited, though growing, coverage for assisted living and
social services will restrain gains for these segments.

Out-of-Pocket and Private Insurance Payments to See Fastest Growth
as Cost of Care Rises

Government payment sources are vital to this industry, with Medicaid and
Medicare together paying for over half of market revenues in 2016. Both
have seen limited gains due to reduced reimbursement rates, but expanded
coverage via the ACA supported growth.

Payments from private insurance and out-of-pocket will see above average
growth, driven by rising interest in community-based services that have
limited coverage from government funding sources.

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