The U.S. hospice market size was estimated at USD 30.69 billion in 2024 and is projected to hit around USD 48.21 billion by 2034, growing at a CAGR of 4.62% during the forecast period from 2025 to 2034.
The growth of the market is attributed to the rising prevalence of chronic diseases among rapidly growing geriatric populations. In addition, increasing need for quality healthcare services at home along with growing Medicare reimbursement for hospice care is expected to further drive the market growth over the forecast period.
The geriatric population is predicted to grow considerably in the future as life expectancy increases. However, this growing population leads to a higher prevalence of chronic conditions such as cancer, dementia, and cardiovascular diseases. These conditions often necessitate specialized end-of-life care, which is effectively provided by hospice services. For instance, according to the National Hospice and Palliative Care Organization (NHPCO), in 2021, about 47.8% of Medicare hospice patients were aged 75 and above. However, the 85 and older age category has climbed the highest since 60.8%.
The number of hospice centers in the U.S. has been steadily increasing over the years. According to the Biennial Overview of Post-acute and Long-term Care in the United States, as of 2020, there were approximately 5,200 hospice care agencies operating in the U.S. In 2022, this number amplified to 5,899 Medicare-certified hospice agencies. This growth is largely attributed to the aging population and an increasing prevalence of chronic diseases, which drive demand for hospice services. Moreover, the market is experiencing a significant shift towards home-based care, driven by technological advancements and evolving patient preferences. Remote patient monitoring tools and telehealth services enable healthcare providers to deliver effective care without requiring patients to leave their homes. These innovations improve care quality and reduce hospital stay costs, making home-based hospice care an attractive option for many families.
Furthermore, the growing awareness of end-of-life care options, particularly hospice care, has significantly influenced its utilization in the U.S. This trend is driven by several factors, including public perceptions, healthcare system dynamics, and the evolving reform for hospice care. As awareness of hospice benefits increases, healthcare providers are more expected to recommend hospice services to patients and families. Organizations such as the National Hospice and Palliative Care Organization (NHPCO) are organizing awareness campaigns that focus on educating both patients and healthcare providers. For instance, the Palliative Care Awareness Campaign initiative provides resources to empower patients and caregivers, emphasizing the importance of integrating palliative care early in treatment rather than associating it solely with end-of-life scenarios. Thus, as awareness continues to increase, it is expected that hospice care will become an even more integral part of end-of-life planning for many Americans.
| State | Hospice Beneficiaries | Hospice Utilization |
| Utah | 15,127 | 59.62% |
| Florida | 150,305 | 55.98% |
| Rhode Island | 6,529 | 55.15% |
| Wisconsin | 36,903 | 54.32% |
| Iowa | 20,030 | 54.25% |
| Arizona | 45,761 | 54.09% |
| Delaware | 6,657 | 54.03% |
| Ohio | 78,331 | 52.88% |
| Texas | 145,161 | 52.24% |
The U.S. Hospice industry experiences a moderate degree of innovation. Companies are engaged in developing innovative models and programs to enhance patient care. For instance, the National Partnership for Hospice Innovation (NPHI) launched an Innovation Lab in May 2019, to study the best practices among nonprofit hospices and promote innovative care models. This includes developing home-based primary care programs for patients who are not yet in hospice but require significant support due to chronic illnesses.
The industry is experiencing a high level of merger and acquisition activities undertaken by several key players. This strategy enables companies to increase their capabilities, expand their service portfolios, and improve their competencies. For instance, in June 2023, Amedisys and Optum announced their merger, combining two organizations committed to deliver compassionate, value-based, and comprehensive care to patients and their families.
The U.S. hospice industry is growing, coupled with continuous changes in regulatory framework. Key regulatory changes include 36-month ownership rule, special focus program, increased quality reporting requirements, and launch of new measurement tools. Furthermore, state hospice care regulations, which are normally found in administrative codes, cover standards for hospices contracting with state Medicaid programs as well as patient guidelines.
Published by Ajit Bansod
