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Home Healthcare Industry Analysis

Autor:   •  April 8, 2012  •  Case Study  •  728 Words (3 Pages)  •  1,106 Views

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The Home Health Care industry is a vital part of healthcare as a whole. It is considered to be a fragmented industry according to Darrell Johnson, who is the President and CEO of FRANdata. He states, “The 50 largest brands control less than a quarter of the market share. This is an important finding for investors because it means that any brand with the right leadership and resources put behind it can become the market leader.” Both small and large companies can successfully serve their markets within the home health care market.

Over the past 5 years, the home health industry has proven to be an industry that is thriving and full of opportunity and growth for its companies. Due to the nation’s economy situation and new health care reform, many people have explored ways to cut back on healthcare expenses. This cut back has promoted those in need of health care assistance to avoid hospitals because of the enormous bills and venture into a more affordable option such as the home health care option. In 2009, the National Association for Home Care and Hospice reported that the average Medicare charges for a hospital visit was $6,200 per day versus $135 per home care visit. The U.S Department of Labor reports that the home health care service is one of the largest growing sectors of the U.S. economy. During the last 5 years, the industry had an average annual revenue growth of 5%. These statistics are in lieu of health care reform in which the Centers for Medicare and Medicaid reduced payments to home health care agencies by 2.75% in each calendar year between 2008 and 2010.

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Strategic Map of the Home Health Care Industry

Gentiva Health Services seems to present the best strategy in the home health industry. They have strategized to incorporate more franchises into their business which will accommodate the aging population of our country while other firms are downsizing. Their specialty programs are developed to enhance the growth of Medicare.

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