Global Long Term Care Market Size

Long Term Care Market Analysis

The Long Term Care market is expected to register a CAGR of 5.6% over the forecast period.

The COVID-19 pandemic had a significant impact on nursing homes initially, with enormous outbreaks reported in long-term care facilities across the globe. It not only affected residents but also care workers and visitors. According to an article titled "COVID-19: Management in nursing homes", published by Mark Yurkofsky and MDJoseph G Ouslander in September 2022, due to the significant percentage of older people and those with underlying chronic diseases, COVID-19 had a disproportionately adverse impact on nursing home (NH) populations during the initial phase of the outbreak. The high resident-to-healthcare personnel (HCP) ratios, the enclosed environment, the use of resident common spaces, and the difficulties faced by dementia patients who find it difficult to adhere to social distance and universal masking policies impacted the health of the patients. However, nursing home and long-term care services started resuming with proper COVID-19 guidelines in the latter phase of the outbreak. As per the 2022 report, Long Term Care News, in early 2021, the Agency for Health Care Administration (AHCA) executives predicted that a 1% increase in occupancy each month would put nursing homes back on firm ground. Furthermore, as per the article published in 2021 titled "Challenges and Futures of Long-Term Care Industry after COVID-19 Pandemic", the study showed that, after the COVID-19, there are many additional new options that can offer adequate and reasonably priced care for possible elderly or dependents who may need residential care. Governments modified their norms regarding long-term care facilities in order to accommodate people and help the settings financially. Additionally, home-and community-based care is likely to take over as the major form of care in the long-term care sector in the post-pandemic phase. Thus, due to the aforementioned factors, COVID-19 had a significant impact on the long term care market.

In addition, favorable long-term care insurance plans, increasing adoption of long term care homes by the older population, and technological advancements in the field of long-term care are boosting the market's growth.

For instance, the article published in 2021 titled "The future of long-term care requires investment in both facility- and home-based services" stated that the Dutch, Norwegian, and Swedish systems are prioritizing Home & Community Based Services (HCBS) for nursing care homes. Public spending on long-term care as a share of GDP in the Netherlands (3.7%), Norway (3.3%), and Sweden (3.2%) far exceeds the United States (0.5%).

Furthermore, technological advancements in the field of long-term care are anticipated to uplift market growth. For instance, as per the June 2022 update, American HealthTech, an EHR provider for the long-term care and post-acute care sector, collaborated with Brown University, Exponent Inc., and MatrixCare to collect and use nursing home residents' electronic medical records and associated data, such as lab results, to create comprehensive resident EHRs to help providers monitor their residents' needs and outcomes. According to the Agency for Health Care Administration (AHCA), the health records system is anticipated to assist public health reporting and enable researchers to produce real-world evidence on various therapies and care techniques for the elderly and people with disabilities in nursing homes. Hence, this initiative is likely to provide an uplift to the market and thereby boost the market's growth.

Thus, due to the aforementioned factors, the long-term care market is expected to witness significant growth over the forecast period. However, the high cost associated with nursing services and a lack of awareness of long-term care services restrains the market's growth.