United States Long Term Care Market By Service (Home Healthcare, Hospice & Palliative Care, Nursing Care, Assisted Living Facilities, Others), By Payer (Public, Private, Out-of-Pocket) By Region, Competition, Forecast and Opportunities, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 507.18 Billion
CAGR (2026-2031)	7.19%
Fastest Growing Segment	Home Healthcare
Largest Market	Midwest
Market Size (2031)	USD 769.29 Billion

Market Overview

The United States Long Term Care Market will grow from USD 507.18 Billion in 2025 to USD 769.29 Billion by 2031 at a 7.19% CAGR. Long-term care comprises a broad range of medical and personal services designed to assist individuals with chronic illnesses or disabilities in performing daily activities, delivered in settings ranging from private homes to institutional facilities. The primary driver supporting market growth is the rapidly aging population, particularly the Baby Boomer generation, combined with the rising prevalence of chronic conditions that necessitate prolonged assistance. These fundamental demographic and epidemiological factors create a sustained demand for care services that exists independently of temporary industry shifts.

However, a significant challenge impeding expansion is the persistent workforce shortage which severely limits provider capacity. High turnover and recruitment difficulties restrict the ability of facilities to accept new patients and meet this rising demand. According to the American Health Care Association, in 2025, the long term care profession remained below pre-pandemic workforce levels with a deficit of more than 100,000 employees. This labor scarcity forces providers to constrain admissions and hampers overall market growth potential despite the robust need for services.

Key Market Drivers

The rapid expansion of the geriatric and Baby Boomer population serves as the primary demographic engine propelling the United States Long Term Care Market. This shift represents a fundamental alteration in the nation's age structure, known as "Peak 65," where the volume of individuals entering retirement age creates immediate pressure on service capacity. As this cohort ages, the necessity for assistance transitions from occasional support to continuous care, significantly driving market revenue. According to the Retirement Income Institute, January 2024, in the 'Peak 65 Zone' report, roughly 4.1 million Americans will turn 65 this year, creating a historic surge of approximately 11,200 individuals reaching this milestone daily. This influx guarantees a sustained trajectory of demand for both home-based and institutional care solutions well into the next decade.

Simultaneously, the escalating prevalence of chronic and neurodegenerative diseases is necessitating higher acuity levels of specialized memory and dementia care services. The complexity of managing conditions such as Alzheimer’s requires distinct facility infrastructure and specialized staff training, driving the expansion of niche market segments. According to the Alzheimer's Association, March 2024, in the '2024 Alzheimer's Disease Facts and Figures' report, the national cost of caring for individuals living with Alzheimer's and other dementias is projected to reach $360 billion in 2024. This massive financial footprint underscores the critical need for professional care management. Furthermore, the economic burden of accessing these necessary services continues to rise; according to Genworth Financial, in 2024, the median annual cost for a semi-private room in a nursing home facility exceeded $104,000, highlighting the intense value growth within the care sector.

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Key Market Challenges

The persistent workforce shortage acts as a primary bottleneck for the United States Long Term Care Market, directly hampering its ability to capitalize on rising demand. Facilities operate under strict regulatory frameworks that mandate specific staff-to-patient ratios to ensure safety and quality of care. When providers face high turnover and an inability to fill vacancies, they are forced to voluntarily restrict new admissions to remain compliant with these regulations. This creates a situation where the market supply is artificially constrained by labor availability rather than physical infrastructure, leaving available beds empty despite long waiting lists.

This operational paralysis prevents the market from expanding in alignment with the aging population. High staff instability disrupts continuity and forces facilities to operate well below their potential occupancy to avoid regulatory penalties. According to the American Health Care Association, in 2025, the turnover rate for certified nursing assistants remained critically high at 42.34%. Such elevated turnover rates compel administrators to freeze resident intake, causing a direct loss of potential revenue and stagnating overall market growth potential regardless of the increasing number of seniors requiring care.

Key Market Trends

The Accelerated Shift Toward Aging-in-Place and Home-Based Care Services is reshaping the market as seniors increasingly prioritize independence over institutional living. This trend is fundamentally driven by consumer preference for staying in familiar environments, coupled with the cost-effectiveness of home care compared to skilled nursing facilities. Advancements in portable medical equipment and home modification services are enabling higher-acuity care to be delivered domestically, reducing the necessity for premature facility admission. The demand for these community-based solutions is evident in consumer sentiment; according to AARP, December 2024, in the 'Home and Community Preferences Survey', 75% of adults aged 50 and older expressed a desire to remain in their current homes as they age, signaling a massive redirection of revenue from traditional facilities to home health providers.

Simultaneously, the Adoption of Artificial Intelligence for Predictive Health Analytics and Care Planning is revolutionizing clinical operations by enhancing decision-making and operational efficiency. Long-term care providers are integrating machine learning algorithms to analyze resident data, allowing for the early detection of health deterioration and the reduction of hospital readmissions. This technological shift is also streamlining administrative burdens, such as regulatory reporting and staff scheduling, which is critical given the sector's labor constraints. Despite these benefits, the uptake remains gradual compared to other healthcare sectors; according to Skilled Nursing News, December 2025, in the 'Nursing Homes Lag Other Health Care Settings in AI Adoption' article, the adoption rate of artificial intelligence in nursing facilities grew from 3.1 percent in 2023 to only 4.5% in 2025, highlighting substantial room for future growth in digital modernization.

Segmental Insights

Home healthcare has emerged as the fastest-growing segment in the United States long-term care market, primarily driven by the increasing preference among the geriatric population to age in place. This expansion is further accelerated by initiatives from the Centers for Medicare & Medicaid Services that incentivize cost-effective community-based care models over institutional settings to reduce hospital readmissions. Additionally, the substantial expense of traditional nursing facilities has prompted a shift toward home-based services as a financially sustainable alternative. Consequently, this sector is expanding rapidly as it aligns regulatory support with patient demand for independence.

Regional Insights

The Midwest region maintains a leading position in the United States Long Term Care Market, primarily driven by its extensive and well-established infrastructure of skilled nursing and assisted living facilities. This market dominance is anchored by a rapidly aging demographic and a higher prevalence of chronic conditions within the region, which creates sustained demand for continuous medical supervision. Furthermore, supportive reimbursement frameworks managed by the Centers for Medicare & Medicaid Services ensure service accessibility and financial viability for providers. Consequently, the combination of high capacity and consistent public funding solidifies the Midwest as a pivotal hub in the national sector.

Recent Developments

• In August 2025, UnitedHealth Group finalized its acquisition of Amedisys, a prominent provider of home health, hospice, and palliative care, following a settlement with the Department of Justice. The transaction, valued at approximately $101 per share or $3.3 billion, involved the divestiture of certain care centers to resolve antitrust concerns. This strategic combination integrated the home health and hospice capabilities of Amedisys into the Optum subsidiary of UnitedHealth Group. The merger was designed to expand the delivery of value-based care in home settings, aiming to improve patient outcomes and reduce costs across the long-term care continuum.
• In November 2024, Encompass Health announced the opening of a 61-bed inpatient rehabilitation hospital in Houston, Texas, which served as the company’s first facility constructed entirely using prefabricated modules. This innovative construction method, executed in collaboration with a specialized manufacturing partner, was utilized to shorten the development timeline and enhance quality control. The hospital was equipped to provide comprehensive physical, occupational, and speech therapies for patients recovering from debilitating conditions such as strokes and neurological disorders. This opening represented a significant advancement in the company's strategy to efficiently expand its network of rehabilitation facilities.
• In October 2024, PointClickCare announced the launch of two new workforce management solutions designed to address staffing challenges within the senior care industry. Developed in partnership with Apploi, a recruitment software provider, these products aimed to streamline the hiring and onboarding processes while optimizing staff scheduling for long-term care providers. The integrated solutions allowed organizations to track applicants more effectively and manage labor budgets through a unified system. This initiative underscored the technology company's commitment to supporting skilled nursing and assisted living facilities in maintaining adequate staffing levels and ensuring high-quality resident care.
• In September 2024, Brookdale Senior Living entered into definitive agreements to acquire three portfolios comprising 41 senior housing communities for a total purchase price of $610 million. These transactions included 2,789 units previously operated by the company under triple-net lease structures. By transitioning these properties from leased to owned assets, the company aimed to enhance its portfolio management flexibility and improve long-term cash flow. The acquired portfolios consisted of independent living, assisted living, memory care, and skilled nursing units, reinforcing the company's position as a leading operator in the senior living sector.

Key Market Players

• Brookdale Senior Living, Inc.
• Knight Health Holdings, LLC
• Almost Family, Inc.
• Atria Senior Living Group
• Sunrise Senior Living, LLC
• Extendicare, Inc.
• Sonida Senior Living
• Diversicare Healthcare Services Inc.
• Genesis HealthCare
• Home Instead, Inc.

By Service	By Payer	By Region
Home Healthcare Hospice & Palliative Care Nursing Care Assisted Living Facilities Others	Public Private Out-of-Pocket	Northeast Midwest South West

Report Scope:

In this report, the United States Long Term Care Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• United States Long Term Care Market, By Service:

• Home Healthcare
• Hospice & Palliative Care
• Nursing Care
• Assisted Living Facilities
• Others

• United States Long Term Care Market, By Payer:

• Public
• Private
• Out-of-Pocket

• United States Long Term Care Market, By Region:

• Northeast
• Midwest
• South
• West