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In-Home Care Expands: Personal Care, Nursing, and Therapies Drive Market Momentum
The home health sector continues to show strong growth, with key service areas expanding at high single-digit to low double-digit rates year over year. Notably, personal care services, including unskilled support for daily living, are experiencing robust demand, driven by an aging population and preference for in-home support.
Concurrently, there is robust and sustained growth across skilled nursing, home infusion services, and home-based therapies, including physical, occupational, and speech therapy, driven by increasing demand for cost-effective, patient-centered care in alternative settings.
All of these trends reflect a bigger shift in healthcare, moving care out of facilities and into the home—making Home Health one of the most attractive areas for investment within the broader healthcare landscape.
Key Drivers and Constraints in Home Health
The growth of the home health sector is propelled by a confluence of demographic, clinical, and economic factors. Chief among them is the rapid expansion of the 65+ population, the fastest-growing age group in the US, which is driving sustained demand for both skilled and non-skilled in-home services. This population prefers to receive care at home over institutional settings, boosting demand for both skilled and unskilled in-home services.
Advancements in clinical protocols have also played a critical role, particularly in home infusion, where improved safety standards and technology have made it feasible to administer complex therapies outside of a hospital setting.
On the constraint side, workforce availability remains a critical challenge. Demand for in-home caregivers and skilled clinicians is outpacing supply, putting pressure on staffing models and limiting the ability of some providers to scale.
Investor Interest and Behavior in Home Health
Investor demand in the home health sector remains strong, with particular emphasis on scalable, cost-effective care models that align with both patient preferences and payer incentives. Personal care services—which assist with essential activities of daily living such as bathing, grooming, and meal preparation—are attracting increased investor interest due to their recurring revenue profile and critical role in comprehensive, long-term care strategies. Notably, franchise-based models are coming to market with greater frequency, giving investors clear ways to grow. They offer solid financials, geographic expansion opportunities, and operational playbooks that can be scaled across regions.
Home infusion is a top focus for investors due to its fast growth and lower cost compared to hospital care. As payers push for cheaper care settings, it offers a safe and efficient way to treat patients at home while keeping costs down.
H2 Outlook: Home Health Investment Opportunities
In the second half of the year, investor interest in Home Health is expected to remain strong, with a clear focus on two high-opportunity segments. First, personal care services, particularly unskilled care models, are attracting growing attention, with franchise-based businesses leading the way. A recent example is the sale of US personal care services provider Synergy HomeCare Franchising, which signals momentum for future deal activity in the space. These models offer scalability, recurring revenue, and rising demand tied to aging demographics and patient preference for in-home support.
Second, home and ambulatory infusion providers, especially those that own and operate their own pharmacies, are likely to see increased investor activity. These businesses benefit from both clinical control and vertical integration, enabling better margins and stronger payer relationships. As payers continue steering patients toward lower-cost care settings, these platforms are well-positioned to capture growth and deliver strong ROI.
Representative Recent Home Health Experience:
Stax has helped a variety of clients across the home health ecosystem through various stages of the deal lifecycle. Our Healthcare vertical has worked for 30+ years to deliver PE investors actionable insights to help drive value creation and create growth opportunities that lead to successful exits. To learn more about our Healthcare expertise, visit our Insights page or click here to contact us directly.
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