The home medical assistance market - United Kingdom

The global home health care market is influenced by an aging population and increasing access to healthcare services, particularly in developing countries. In the UK, over 15 million people required home care in 2020, with the majority of care being provided at home rather than in care homes or hospitals. The sector, facing a surge in demand especially for elderly and specialized medical care, has been significantly impacted by the Covid-19 pandemic, leading to higher mortality rates among recipients and caregivers, and exacerbating recruitment challenges. In response to budget constraints and the pursuit of efficiency, the market is moving towards innovations such as telemedicine and integrated care models. The market structure sees a division between public and private investments, with public sector dominating the home care provision. Despite the growth in the number of home care jobs, the sector struggles with competitive pay and recruitment, further stressed by factors like Brexit. Financial analysis reveals that for-profit providers generally fare better in terms of revenue and profitability compared to not-for-profit organizations. Overall, the market is under pressure to meet growing demands with quality services amidst staffing shortages and regulatory changes.

The UK Home Health Care Market: Rising Demand Amidst Aging Population and Challenges

In the UK, an aging population is driving an increasing demand for home health care services. According to the Office of National Statistics, the number of people aged 85 and over is projected to grow by roughly 35%, from between 1 and 2 million between 2015 and 2025. This demographic shift is anticipated to substantially elevate the need for home health care, which involves licensed healthcare professionals providing support within the home. Despite this growth in demand, challenges such as funding cuts and staffing shortages due to budget constraints and Brexit implications are putting pressure on the ability to deliver quality care services. The home health care market in the UK was valued at around £16.6 billion per year, with the care home sector being a major component. It's important to note that the services considered are medical in nature, as opposed to non-medical support tasks. A significant portion of the market is geared towards the elderly, but it caters to individuals with long-term illnesses, disabilities, and recent hospital discharges as well. Local authorities play a substantial role in purchasing these services, but funding issues have led to market instability.

National Health Service strategies emphasize the importance of aging in place and providing care close to home. Globally, the home care market is also on the rise, valued at US $282 billion and expected to grow annually at 7.9% through 2027. Aging populations worldwide and better access to healthcare in developing regions fuel this growth. Despite the challenges posed by the Covid-19 crisis, which led to heightened death rates among care recipients and frontline caregivers, the market has shown resilience. Recruitment difficulties, exacerbated by the pandemic and Brexit, remain a concern, with a high percentage of home care providers indicating the increased complexity of hiring staff. The UK has witnessed a shift in the age distribution of adults receiving long-term care, with a slight decline in beneficiaries aged over 65 and a steady number under 65 receiving support, indicating a greater proportional demand for home care among younger adults. With the population aged over 65 expected to increase by nearly 30% from 2020 to 2035, the demand for elderly care is predicted to rise annually by more than 2% from 2027 to 2030. In terms of supply, the number of jobs in home care services exhibited an 8% growth from 2019-20 to 2020-21, reflecting.

Key Players Shaping the UK Home Health Care Market Landscape The UK home health care market is composed of a variety of actors, each playing a critical role in shaping and delivering care to the population. This market has seen a dynamic interaction between public sector entities, private companies, non-profit organizations, and innovative startups that together create a diverse and complex ecosystem.

• Local Authorities: Often the cornerstone of home health care markets, local authorities are significant purchasers of care services. They manage the public-sector demand for home care and are crucial in shaping the market due to their statutory duties under the Care Act 2014. They are responsible for ensuring that there is an adequate supply of quality services to meet local needs.
• National Health Service (NHS): The NHS is essential in promoting policies that support aging in place and providing care as close to home as possible. The NHS has been seen as the backbone of the UK's health care, working hand in hand with home health care providers to optimize patient outcomes and manage costs.
• Private Service Providers: A multitude of private service providers caters to those not eligible for local authority home care. These providers can vary greatly in size and approach but are united in providing a range of services from personal care to specialized medical care at home. Private clients can directly engage these providers to receive personalized home care services.
• Non-Profit Organizations (NPOs): NPOs often contribute to the care sector by offering services driven by mission rather than profit. They play an essential role in providing care, especially to vulnerable populations, where affordability is a pressing concern. Non-profit providers may have more challenges generating revenue compared to their for-profit counterparts but are critical in filling gaps left by the private sector.
• Innovative Health Tech Companies: With the rise of digital health solutions, companies offering technology-driven services such as telemedicine, telehealth, and remote telecare are revolutionizing the home health care market. These innovators improve efficiency, accessibility, and quality of care through advanced technologies that enable remote monitoring and virtual consultations.
• Saga, Care UK, and Housing 21: As three of the largest home care providers historically, their exit from the publicly funded home care market signifies the challenges and the evolving nature of the industry. These major players represent the shifts and economic pressures that the market is subject to, often leading to a reevaluation of their business models and strategies.

Inforamtion

• Number of pages : ~ 40 pages
• Format : Digital and PDF versions
• Last update : 20/01/2022

Summary and extracts

List of charts presented in this market study

• Size of the home health care market
• Distribution of people receiving or requiring care
• Total number of home care hours purchased
• 5 main components of the UK healthcare market
• Home Care Vacancy Rate
• Recruitment process for home care workers
• Deaths of home care recipients in England
• COVID-19 mortality rates for providers
• Number of adults receiving long-term care from local authorities
• Evolution of the British population
• Breakdown of local authority expenditure (total expenditure £7.9 billion)
• Projected increase in demand for care for adults aged 18 to 64
• Projected increase in state-funded care costs for adults
• Number of adults receiving long-term medical support
• Number of jobs in home care services
• Home care providers in the UK per million population
• Revenues and profitability of home care service providers
• Planned expenditures for the care of persons age 65 and over
• UK home care market
• Key figures for home care and nursing homes registered with the Care Quality Commission
• Care Quality Commission (CQC) Ranking by Service Type
• Breakdown of UK local authority spending on long-term medical support
• UK Homecare Association's minimum homecare price