U.S. Long Term Care Software Market Size, Share & Trends Analysis Report By Mode Of Delivery (Cloud-based, Web-based, On-premises), By Application, By End-use, And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. long term care software market size was valued at USD 1.3 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 11.49% from 2023 to 2030. Long-Term Care (LTC) is becoming increasingly significant in the United States, which is primarily attributed to the rising healthcare requirements of the rapidly aging population. LTC software assists individuals with their medical and personal care, empowering them to maintain independent living. The growing adoption of Electronic Health Records (EHR) and the increased usage of LTC centers are key factors driving market expansion. Additionally, the escalating prevalence of chronic conditions and the expanding geriatric population contribute to market growth.

LTC offers time and cost-saving workflow techniques, including a centralized database, integrated Electronic Health Records (EHRs), and solutions for medication management, payroll management, resident care, revenue cycle management, clinical documentation, and more. These features enable effective patient care, improved compliance, and cost reduction.

The shortage of nursing staff and increasing burnout among healthcare professionals in the United States have driven the adoption of healthcare IT solutions in recent years. Thus, many LTC providers are incorporating these tools to streamline their workflow. For example, in October 2022, the American Health Care Association (AHCA) announced that PointClickCare had joined the Long-Term Care Data Cooperative, working together to develop a comprehensive health records solution.

The U.S. long-term care software market is expected to grow significantly due to the increasing geriatric population in the country. As more seniors aged 65 years and above live longer, there is a greater demand for long-term care services and software to support their needs. According to data from the Population Reference Bureau, the number of Americans aged 65 years and above is projected to almost double, reaching 95 million by 2060 from 52 million in 2018. This shift will also result in a higher percentage of older adults, from 16% in 2018 to 23% by 2060.

Long-term care providers are undertaking strategic initiatives to prioritize quality care. For instance, in February 2022, Creative Solutions in Healthcare (CSNHC) unveiled its innovative software platform, Connected Care Center. This platform increases transparency among its 92 skilled nursing facilities by facilitating the seamless & private sharing of vital patient information, such as medical diagnoses, vital signs, and medical orders. By embracing such technology, long-term care facilities can optimize operations and ensure more efficient patient-centric care. As healthcare providers continue to focus on improving quality & efficiency, the U.S. long-term care software market is poised for remarkable expansion, positively impacting the healthcare ecosystem.

The COVID-19 pandemic significantly impacted the elderly population, especially those living in long-term care facilities. Many nursing homes succumbed to the infection as nearly 80% of the residents there belonged to highly vulnerable groups. A report from the American Medical Association and the National Center for Support and Living (AHCA/ NCAL) in June 2021 surveyed 616 long-term care facilities and found that 94% were understaffed. The high spread of infection and shortage of staff boosted the use of software to manage patients. Moreover, the pandemic has increased the adoption of EHR and interoperability solutions in LTC facilities.

Mode of Delivery Insights

The cloud-based segment accounted for the largest revenue share of 41.06% in 2022. Furthermore, it is projected to experience the highest CAGR during the forecast period. Cloud-based solutions offer cost-effectiveness, flexible cost & usage options, fewer operational issues, low initial investment, and enhanced security. Furthermore, the demand for cloud-based solutions is rising, leading to the development of new products.

For instance, in September 2022, RedSail Technologies and Guardian Pharmacy of Indianapolis collaborated to launch Axys by Integra, an LTC pharmacy software tailored to modern technology and the specific needs of LTC pharmacies. Such developments are transforming the Long-Term Care (LTC) software market, improving efficiency and care delivery. Based on the mode of delivery, the market is segmented into cloud-based, web-based, and on-premises.

The web-based segment is expected to witness substantial growth, driven by the increasing usage of online platforms. On the other hand, on-premises solutions, which are installed at user locations, primarily on workstations, may face challenges due to their high initial costs, thereby affecting their market growth.As technology evolves, more clinics might opt for cloud-based solutions, which offer cost-effectiveness, flexibility, and enhanced accessibility.

Application Insights

The EHR segment accounted for the largest share of revenue in 2022, at 32.39%, in the U.S. long term care software market. Furthermore, it is projected to experience the highest CAGR during the forecast period. Based on application, the market is segmented into Electronic Health Record (EHR), electronic Medication Administration Record (eMAR), revenue cycle management, resident care, staff management, and others.

Electronic Health Record (EHR) plays an important role in the healthcare industry, catering to the rapidly growing population requiring extended care. Despite this, EHR adoption in LTC facilities has been slower compared to other sectors in the healthcare domain. One of the primary reasons behind this disparity is the exclusion of LTC facilities from incentives under the Meaningful Use Program in the U.S.However, there have been positive developments in recent years, with 84% of nursing facilities choosing EHRs, as indicated by an NCBI study published in 2018. Implementing an EHR system in LTC facilities has the potential to significantly enhance the quality of care if proper implementation, usage, and maintenance are ensured.

The electronic medication administration record (eMAR) segment is expected to witness a significant growth rate during the forecast period, owing to the increasing need for solutions for medication management and adherence. Additionally, the rising need for integrated LTC software with EMR capabilities is expected to drive the segment growth.

End-use Insights

The nursing homes segment dominated the market with a share of 40.08% in 2022. Increasing awareness about nursing care services, rising EHR implementation in SNFs, and high patient safety are key factors contributing to the growth of the segment. Based on end-use, the market is segmented into home healthcare agencies, hospice & palliative care, nursing homes, and assisted living facilities.

As the demand for nursing homes continues to rise with the aging population, LTC software solutions are expected to support streamlining operations, improve care coordination, and enhance resident experiences. The adoption of such software is anticipated to drive the growth of the nursing home segment in the market, facilitating efficient and comprehensive care for elderly individuals in need.

The home healthcare agencies segment is projected to exhibit the maximum CAGR during the forecast period. Increasing preference for care at home among the elderly and the rising number of remote monitoring solutions enabling independent living are driving high growth of the segment. The segment is likely to further benefit from technological advancements such as telemedicine, mHealth apps, and internet-enabled home monitoring.

Key Companies & Market Share Insights

Some of the strategies undertaken by key players to strengthen their market presence include collaborations, software enhancements, and mergers & acquisitions. For instance, in June 2023, Netsmart and nVoq partnered to enable integrated voice recognition, in order to help in-home healthcare clients with their documentation problems. Similarly, in February 2022, to improve transparency in its 92 skilled nursing institutions, Creative Solutions in Healthcare (CSNHC) introduced a new software platform called Connected Care Center. With the help of this platform, patients and their families can access health data anywhere at any time. Some of the prominent players in the U.S. long term care software market include:

• Veradigm LLC (Allscripts Healthcare)

• Cerner Corporation (Oracle Corporation)

• Netsmart Technologies, Inc.

• MatrixCare

• Yardi Systems, Inc.

• VITALS SOFTWARE

• PointClickCare

• Medtelligent, Inc.

• AL Advantage, LLC

• Genexod Technologies LLC

• Revver, Inc.

U.S. Long Term Care Software Market Report Scope

U.S. long term care software Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. long term care software market report based on mode of delivery, application, and end-use:

• Mode of Delivery Outlook (Revenue, USD Million, 2018 - 2030)

  • Cloud-based

  • Web-based

  • On-premises

• Application Outlook (Revenue, USD Million, 2018 - 2030)

  • Electronic Health Records

  • Electronic Medication Administration Record (eMAR)

  • Revenue Cycle Management

  • Resident Care

  • Staff Management

  • Others

• End-use Outlook (Revenue, USD Million, 2018 - 2030)

  • Home Healthcare Agencies

  • Hospice & Palliative care

  • Nursing Homes

  • Assisted Living Facilities