US Postacute Care Market

U.S. Post-acute Care Market Size

The U.S. post-acute care market size was valued at USD 490.6 billion in 2025. The market is expected to reach from USD 513.9 billion in 2026 to USD 898.5 billion in 2035, growing at a CAGR of 6.4% during the forecast period, according to the latest report published by Global Market Insights Inc. The high market growth is attributed to the aging population and rising chronic disease burden, shift toward value-based care and cost containment, and favourable medicare coverage for post-acute services, among other contributing factors.

Post-acute care refers to a range of medical and supportive services that a patient may need after a hospital stay. These services are meant to help the patient recover, regain function, or manage a chronic condition. The care is basically rehabilitation, nursing care at the skilled level, home health, and long-term care services that are targeted at outcome improvement of the patients.

The market has increased from USD 434.6 billion in 2022 and reached USD 469.8 billion in 2024, with the historic growth rate of 4%. The market growth was driven by increasing hospital discharge volumes, expansion of home health and hospice utilization, improved survival rates after complex surgeries and critical illnesses, and broader availability of specialized post-acute services such as long-term acute care hospitals (LTACHs) and inpatient rehabilitation facilities (IRFs).

In the U.S., the rising volume of orthopedic, cardiovascular, and neurological surgeries has significantly increased demand for rehabilitation and recovery services. For instance, according to the data published by the National Center for Biotechnology Information (NCBI) indicates that approximately 1 million total hip and knee replacement procedures are performed annually, substantially driving the need for structured post-acute care.

Following such complex interventions, post-acute services play a critical role in restoring mobility, functional independence, and overall quality of life. In addition, the National Safety Council reported that more than 62 million injuries resulted from trauma and accidents in 2022, further strengthening demand for rehabilitation, skilled nursing, and long-term recovery services across post-acute care settings.

Furthermore, advancements in remote patient monitoring and telehealth technologies are strengthening home-based post-acute care delivery. Patients increasingly prefer receiving care in familiar home environments. This shift is expanding the addressable market for home health agencies and virtual rehabilitation providers.

U.S. Post-acute Care Market Trends

The U.S. market is growing considerably with the increased use of telehealth and remote monitoring, focus on reducing readmissions and improving quality scores, and integration across the care continuum, among other factors collectively driving industry growth.

• Further, there is a significant move from institutional post-acute care to home-based care as patients opt for a more personalized recovery at home. The use of technology and different workforce models are allowing more complex care to be carried out outside of facilities. This trend not only reduces costs but also is in line with patient satisfaction priorities.
  
• Post-acute providers are heavily invested in telehealth for virtual visits, therapy sessions, and remote patient monitoring. These digital instruments lead to improved access, patient engagement, and the early detection of complications. Telehealth is also helpful in transitions of care and lessening the chances of rehospitalizations which are not necessary.
  
• Moreover, the industry faces persistent workforce shortages, particularly for nurses, therapists, and home health aides. Providers are adopting flexible staffing, upskilling programs, and technology-assisted care to address capacity gaps. Staffing trends are shaping service availability and operational costs, thereby sustaining market growth.
  

U.S. Post-acute Care Market Analysis

The U.S. market was valued at USD 434.6 billion in 2022. The market size reached USD 469.8 billion in 2024, from USD 451.3 billion in 2023.

Based on the service, the U.S. market is segmented into skilled nursing facilities (SNF), home health agencies (HHA), long-term care hospitals (LTCHs), hospice care, inpatient rehabilitation facilities (IRF), and other services. The skilled nursing facilities (SNF) segment has asserted its dominance in the market by securing a significant market share of 30.4% in 2025 owing to high demand for intensive rehabilitation and round-the-clock skilled nursing care following complex surgeries, chronic disease management, and hospital discharges among the aging population. The segment is expected to exceed USD 249.6 billion by 2035, growing at a CAGR of 5.5% during the forecast period.

On the other hand, the inpatient rehabilitation facilities (IRF) segment is expected to grow with a CAGR of 7.8%. The growth of this segment is driven by rising demand for intensive, multidisciplinary rehabilitation for complex neurological, orthopedic, and cardiovascular conditions, along with favorable reimbursement for high-acuity rehab care.

• The skilled nursing facilities (SNF) segment continues to dominate the market. The growing elderly population in the U.S. has a higher incidence of mobility limitations, cognitive disorders, and chronic illnesses. Many of these patients require 24/7 medical supervision, rehabilitation, and assistance with daily activities. SNFs are well positioned to manage these complex post-hospital recovery needs.
  
• Hospitals increasingly discharge patients earlier to optimize bed capacity and reduce treatment costs. SNFs provide an intermediate level of care for patients who are not ready for home discharge. This transition role significantly boosts referral volumes to skilled nursing facilities.
  
• The home health agencies (HHA) segment held a revenue of USD 106.9 billion in 2025, with projections indicating a steady expansion at 6.3% CAGR from 2026 to 2035. The segment is driven by the strong shift toward home-based recovery to reduce hospital length of stay, rising patient preference for care in familiar settings, and payer emphasis on lowering overall episode-of-care costs while maintaining outcomes.
  
• The long-term care hospitals (LTCHs) segment accounted for significant revenue in 2025 and is anticipated to grow at a CAGR of 7.4% over the forecast period. The segment is driven by earlier discharges from acute hospitals, rising ICU bed constraints, and the need for specialized facilities capable of managing long-stay, high-acuity cases under bundled and episode-based payment models.
  

Based on age group, the U.S. post-acute care market is segmented into elderly (65 years & older), adult (45-64 years), and other age groups. The elderly (65 years & older) segment dominated the market in 2025, accounting for USD 204.4 billion and is anticipated to grow at a CAGR of 6.2% during the forecast period.

• The U.S. population aged 65 years and over is increasing substantially, mainly due to the longer life expectancy and the baby boomer generation getting older. This group of people is more likely to have chronic diseases, undergo surgeries, and have limited mobility. As a result of their increasing numbers, the demand for post-acute care services is rising directly.
  
• Older adults experience higher hospitalization rates and undergo more surgeries, including orthopedic, cardiac, and neurological procedures. Post-acute care facilitates recovery, prevents complications, and aids functional independence. This trend ensures a consistent referral flow from hospitals to post-acute facilities.
  
• The adult (45-64 years) segment accounted for significant revenue in 2025 and is anticipated to grow at a CAGR of 6.9% over the forecast period. The segment is propelled by the awareness and the implementation of preventive and rehabilitative care, the increase in elective surgeries, and the demand for quick recovery methods to be able to continue working and maintain the quality of life.
  

Based on condition, the U.S. post-acute care market is classified into neurological disorders, brain injury, amputations, spinal cord injury, wound management, and other conditions. The neurological disorders segment dominated the market with a revenue share of 26.5% in 2025 and is expected to reach USD 252.9 billion within the forecast period.

• Neurologica patients often need a combination of physical, occupational, and speech therapy to regain mobility, cognitive function, and skills necessary for daily living. These types of therapies are available in post-acute care facilities and inpatient rehabilitation centres that offer structured, multidisciplinary programs tailored to these requirements.
  
  
• In addition, better acute treatment for strokes, traumatic brain injuries, and neurosurgeries has led to an increase in survival rates. As a result, more patients are in need of post-acute care in order to regain functional independence, thus making rehabilitation services a vital part of the care continuum.
  
• The brain injury segment accounted for significant revenue in 2025 and is anticipated to grow at a CAGR of 6% over the forecast period. The segment is driven by growing survivor rates from strokes and accidents, rising demand for personalized cognitive and physical rehabilitation, and expanded coverage for post-acute neurorehabilitation services.
  
• The amputations segment accounted for significant revenue in 2025 and is anticipated to grow at a CAGR of 7.5% over the forecast period. The segment is driven by advancements in prosthetic technology, higher awareness of post-surgical rehabilitation programs, and an increasing number of patients seeking comprehensive home- and facility-based recovery services.
  

Northeast Post-acute Care Market

Northeast dominated the U.S. post-acute care market with the highest market share of 26.8% in 2025.

• The Northeast is characterized by a substantially larger percentage of people aged 65 and over, in comparison with other U.S. regions. This age group is more likely to have chronic diseases, require care after surgery, and have limited mobility. As a result, the need for skilled nursing, rehabilitation, and home healthcare services is always high in this region, which in turn, is sustaining an increase in post-acute care facilities.
  
• The Northeast is home to several leading hospitals, academic medical centres, and specialized clinics. This advanced healthcare infrastructure facilitates early hospital discharges and seamless referrals to post-acute care providers. Strong hospital-post-acute integration drives higher utilization of skilled nursing facilities, inpatient rehab centres, and home healthcare services.
  

South Atlantic Post-acute Care Market

South Atlantic post-acute care market accounted for USD 101.3 billion in 2025 and is anticipated to show lucrative growth over the forecast period.

• The South Atlantic region, including states like Florida, Georgia, and the Carolinas, is experiencing rapid population growth, particularly among retirees. This influx of elderly residents increases demand for post-acute services such as skilled nursing, home health care, and rehabilitation. Seasonal migration patterns also drive fluctuating but substantial post-acute care utilization.
  
• Further, there is significant growth in home-based post-acute care and hospice services in this region, driven by patient preference for aging in place. Providers are investing in home healthcare infrastructure and telehealth capabilities. This expansion is supported by both market demand and insurance reimbursement for home-based recovery.
  

Mountain States Post-acute Care Market

The Mountain States post-acute care market is anticipated to grow at the highest CAGR of 8.3% during the analysis timeframe.

• Hospital systems in the Mountain States are partnering with local post-acute providers to ensure smooth transitions and reduce readmissions. Care coordination programs, bundled payment models, and patient monitoring initiatives encourage referrals to skilled nursing and rehab centers. This integration strengthens the regional post-acute ecosystem.
  
• Moreover, certain Mountain States, such as Colorado and Utah, have experienced economic expansion, enabling investments in healthcare infrastructure. New SNFs, rehabilitation centers, and home health agencies are being established. This investment improves access, service quality, and overall market capacity for post-acute care.
  

U.S. Post-acute Care Market Share

The U.S. market is fragmented, comprising a mix of large, integrated healthcare systems, regional hospital networks, and independent post-acute care providers. Key segments include skilled nursing facilities (SNFs), inpatient rehabilitation facilities (IRFs), long-term acute care hospitals (LTACHs), and home healthcare agencies. Major players such as Genesis HealthCare, Encompass Health, Kindred Healthcare, and Select Medical dominate in scale and geographic coverage, often leveraging hospital partnerships and integrated care networks to secure patient referrals.

Smaller regional providers compete by offering specialized services, personalized care, or strong presence in underserved areas. Increasing consolidation through mergers, acquisitions, and joint ventures is also shaping the competitive dynamics, as providers aim to expand service offerings and geographic reach while navigating reimbursement and regulatory pressures.

Competition in the market is increasingly influenced by quality outcomes, patient satisfaction, and value-based reimbursement models. Providers are investing in technology-driven care coordination, telehealth, and remote monitoring to improve efficiency and reduce hospital readmissions. Differentiation strategies include specialized rehabilitation programs (orthopedic, neurological, cardiac), advanced home healthcare services, and partnerships with hospitals for bundled payment programs.

Additionally, the emergence of home- and community-based care is challenging traditional institutional post-acute providers, forcing them to innovate and diversify service delivery. Regulatory changes, reimbursement policies, and the emphasis on integrated care pathways continue to be key factors shaping competition and strategic positioning in the U.S. market.

U.S. Post-acute Care Market Companies

A few of the prominent players operating in the U.S. post-acute care industry include:

• Alden Network
• Amedisys
• AMITA Health
• Athena Health Care Systems
• Bella Vista Health Center
• Benchmark Senior Living
• Brookdale Senior Living
• CareCentrix
• Covenant Care
• Encompass Health
• Evernorth Health
• Genesis Healthcare
• Kindred Healthcare
• LHC Group
• Lincoln Square Post-Acute Care
• naviHealth
• PAC Leaders
• Peninsula Post-Acute
• Vineyard Post Acute
• VITAS Healthcare
  
• Alden Network

It offers highly specialized rehabilitation programs with integrated therapy services, ensuring faster and more effective patient recovery. Strong clinical expertise and multidisciplinary care teams differentiate its post-acute offerings.

• Amedisys

Focuses on home health and hospice services with robust remote monitoring and telehealth capabilities, enabling personalized care in patients’ homes. Its scalable home-based model supports high patient satisfaction and cost-effective care.

• Brookdale Senior Living

Combines a large national footprint with diverse senior care services, offering seamless transitions across home, community, and facility-based U.S. post-acute care. Advanced care coordination and specialized rehabilitation programs enhance patient outcomes.

Post-acute Care Industry News:

• In October 2025, Clinware announced the launch of its AI-powered admissions and clinical workflow optimization platform, supported by USD 4.25 million in private funding, targeting skilled nursing facilities and the broader post-acute care continuum. The platform leverages predictive analytics and automation to accelerate admissions, optimize reimbursement, and reduce administrative workload. This development is expected to enhance operational efficiency and allow providers to focus more on delivering high-quality patient care.
  
• In February 2024, TeamHealth launched TeamACO, an accountable care organization tailored to address the healthcare needs of more than 17,000 post-acute care patients. The initiative emphasizes improved care coordination, reduced complications, and better clinical outcomes across post-acute settings. This development strengthens value-based care adoption and enhances continuity of care within the U.S. market.
  

The U.S. post-acute care market research report includes an in-depth coverage of the industry with estimates and forecast in terms of revenue in USD Billion from 2022 – 2035 for the following segments:

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Market, By Service

• Skilled nursing facilities (SNF)
• Home health agencies (HHA)
• Long-term care hospitals (LTCHs)
• Hospice care
• Inpatient rehabilitation facilities (IRF)
• Other services

Market, By Age Group

• Elderly (65 years & older)
• Adult (45-64 years)
• Other age groups

Market, By Condition

• Neurological disorders
• Brain injury
• Amputations
• Spinal cord injury
• Wound management
• Other conditions

The above information is provided for the following zones and states:

• East North Central
  • Illinois
  • Indiana
  • Michigan
  • Ohio
  • Wisconsin
• West South Central
  • Arkansas
  • Louisiana
  • Oklahoma
  • Texas
• South Atlantic
  • Delaware
  • Florida
  • Georgia
  • Maryland
  • North Carolina
  • South Carolina
  • Virginia
  • West Virginia
  • Washington, D.C.
• Northeast
  • Connecticut
  • Maine
  • Massachusetts
  • New Hampshire
  • Rhode Island
  • Vermont
  • New Jersey
  • New York
  • Pennsylvania
• East South Central
  • Alabama
  • Kentucky
  • Mississippi
  • Tennessee
• West North Central
  • Iowa
  • Kansas
  • Minnesota
  • Missouri
  • Nebraska
  • North Dakota
  • South Dakota
• Pacific Central
  • Alaska
  • California
  • Hawaii
  • Oregon
  • Washington
• Mountain States
  • Arizona
  • Colorado
  • Utah
  • Nevada
  • New Mexico
  • Idaho
  • Montana
  • Wyoming