Medtech companies have their eye on the growing hospital-at-home market, which is driven largely by the rising elderly population, the prevalence of chronic diseases and favorable reimbursement policies.
There have been hiccups but some of the largest health systems have leaned into providing hospital-level care at home. Other systems, meanwhile, are establishing smaller programs that don't involve acute-level care and are less costly to scale.
Related: Providers see hospital-at-home growth potential in cancer care
The desire to safely provide care for patients at home is creating a ripe opportunity for companies like Masimo, Cardinal Health, Medline Industries and McKesson, despite some uncertainty.
The global home healthcare market was valued at $257 billion in 2023 and is projected to reach nearly $531 billion by 2032, according to a Vantage Market Research report published in September. North America made up the largest share of the market in 2023, accounting for 43.2% of its overall revenue.
Interest in providing acute-level care in the home took hold during the COVID-19 pandemic when understaffed hospitals were filled with sick patients. The Centers for Medicare and Medicaid Services launched its Acute Hospital Care at Home initiative in November 2020, which allows Medicare-certified hospitals to receive reimbursement for delivering in patient-level acute care in people's homes at the same rate as if the care was provided in hospitals. The initiative was extended through March 31, but Congress must pass legislation to keep it going.
Rob Schlissberg, president of Cardinal Health at-Home Solutions, said he believes the waiver will be extended. “There's not many things that everybody agrees on,” he said. “This seems like one.”
An attractive opportunity
Executives from patient monitoring company Masimo spoke at this year’s J.P. Morgan Healthcare Conference about the company’s plans to focus on the hospital-at-home market.
It plans to offer products that monitor patients recovering at home after being discharged from a hospital and those with chronic illnesses, said Michelle Brennan, then-interim CEO.
The company sells a wearable device called Radius VSM that can monitor oxygen saturation in the blood, blood pressure, heart rate and more as well as detect arrhythmia. Bilal Muhsin, chief operating officer, said during the presentation that the company intends to sell it to providers for home use.
“The challenge at home is a big challenge for these post-operative patients, and technology that can measure with the same accuracy you have in hospitals for these patients at home is going to be really important to those outcomes,” he said.
Cardinal Health is boosting its investment in the space through its planned acquisition of Advanced Diabetes Supply Group. The deal, anounced in November, would be worth an estimated $1.1 billion.
Cardinal Health CEO Jason Hollar said during a JPM presentation that buying Advanced Diabetes would increase its at-Home Solutions business revenue by $1 billion. Advanced Diabetes serves around 500,000 patients per year, selling products such as continuous glucose monitoring devices. Once the deal closes, it will become part of at-Home Solutions, which operates three businesses.
The Cardinal Health at-Home distribution business sells medical supplies for chronic conditions such as diabetes, sleep apnea and incontinence to home medical equipment providers, home health aide agencies and their patients.
The Velocare business, which services hospital-at-home programs, offers products such as patient monitors, supplies for chronic obstructive pulmonary disease care, urological products, medical-grade meals and waste removal services. The Edgepark medical supplies business delivers products directly to patients’ homes, primarily focusing on diabetes care, but also ostomy, urology and wound care.
The company partners with 700 national brand manufacturers but also sells its own branded products for incontinence, nutritional delivery and wound care.
