Rewind to the suture: Healthcare is coming home.
The Pandemic highlighted the brightest areas and most urgent needs in America's healthcare system. One hand, we have witnessed Americas innovation power, with notable contributions from U.S.-based companies and scientists to vaccines and treatment.
However, the pandemic highlighted the distribution and cost inefficiencies of our healthcare system. It now accounts for almost a fifth of our GDP, but is still behind many developed countries in terms of clinical outcomes.
These problems are often caused by a lack in alignment between payment models and incentive models. While hospitals account for a third of healthcare costs, at-home models are more cost-effective and affordable. A majority of providers charge a fee for services, rather than preventive care.
All these factors make healthcare in the country inefficient, reactive and transactional. It is possible to improve outcomes and reduce costs by moving the care from the hospital back home.
In-home healthcare currently accounts for 3% of the overall healthcare market. It is expected to grow to 10% within the next decade, according to our forecasts.
Home care is not a new concept. Over 40% of doctor-patient encounters were held in the home in the 1930s. However, this number dropped to 1% in the 1980s due to changes in technology and health economics that have led to the hospital-dominant model today.
The 50-year shift resulted in consolidated costs and centralized access to specialized diagnostics, treatments, and centers of excellence. This shift also led to a shift from reactive to proactive care, ending the long-term relationship between provider and patient. Today, patients often get their diagnosis from and are treated by individual doctors. These siloed treatment often occur only after the patient requires emergency care. This results in worse outcomes and higher costs.
In-home care is a great option. In-home care currently accounts for 3% of the overall healthcare market. It is expected to grow to 10% within the next decade. This will lead to a better patient experience, improved clinical outcomes, and lower healthcare costs.
In-home healthcare strategies must leverage the latest technology and value-based care strategies in order to make these improvements. The window of opportunity to make positive changes is now,
Five factors that are driving change
Five significant innovations in care delivery have been made over the past few years.