Towards Healthcare Research & Consulting

US Hospice Market Expands as Demand for Home-Based End-of-Life Care Grows

The U.S. hospice market is growing due to rising demand for home-based end-of-life care, an aging population, chronic disease prevalence, and supportive Medicare reimbursement policies.
Author: Towards Healthcare Published Date: 9 June 2026
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The U.S. hospice market size was estimated at USD 38.64 billion in 2025 and is predicted to increase from USD 41.7 billion in 2026 to approximately USD 82.8 billion by 2035, expanding at a CAGR of 7.92% from 2026 to 2035. The market is growing steadily due to the rising elderly population, increasing burden of chronic and terminal illness, and greater demand for compassionate end-of-life care. Growth is further supported by expanding the home-based hospice services, favorable reimbursement policies, and increasing awareness of hospice care benefits.

U.S. Hospice Market Overview

Growing Shift Towards Patient-Centered Care Accelerates Market Expansion

Hospice is a secularized end-of-life care that focuses on providing comfort and emotional support to patients with terminal illness, aiming to improve their quality of life rather than cure the disease. The U.S. hospice market is growing as healthcare systems increasingly prioritize comfort, dignity, and personalized support for individuals with life-limiting conditions. Advancements in palliative care, wider availability of hospice programs, and stronger care coordination are improving service accessibility. In addition, increasing caregivers’ support needs and the growing preference for receiving care in familiar settings are contributing to the continued growth of the market.

Unlocking the Future of U.S. Hospice Care: Growth Through Innovation and Expansion

The U.S. hospice market is expected to grow due to rising demand for home-based care, integration of digital health tools like telehealth and AI, and increasing focus on personalized end-of-life services. Expanding chronic disease burden and an aging population are further creating strong long-term opportunities for hospice providers.

Recent Initiatives

  • In March 2026, Forefront Living partnered with the Visiting Nurse Association of Texas to expand hospice services across North Texas, strengthening both outpatient and inpatient care access.
  • In March 2026, Palladium Equity Partners acquired a majority stake in DME Express to enhance hospice-related durable medical equipment services across the U.S.

U.S. Hospice Care Landscape: Key Patient Trend and Utilization Insights

Parameter Value
Annual hospice users (Medicare beneficiaries) 1.7-1.8 billion
Total hospice length in the U.S. 5800 agencies
Average hospice length of stay 90-100 days
Share of patients aged 65+ 85-90%
Cost saving vs Hospital care 30-40%
Kate hospice referrals (last 30 days of life) 25-30% of patients
Home-based hospice care utilization 65-70%

The U.S. hospice market is strongly influenced by an aging population and high demand for home-based care services. Most patients are elderly and benefit from cost-effective hospice care compared to hospital treatment. However, a considerable number of late referrals highlight the need for earlier hospice adoption to improve quality of life and care outcomes.

Market Segmentation

Routine Home Care Leads the U.S. Hospice Market in 2025

The routine home care segment held a dominant share of 52% in 2025 due to strong patient preference for receiving end-of-life care in familier surrounding. It offers continuous comfort, emotional support, and cost-effective services compared to institutional care. Expanding home healthcare infrastructure, availability of skilled caregivers, and favorable reimbursement policies further strengthened adoption across hospice providers nationwide.

Cancer Remains the Leading Diagnosis in the U.S. Hospice Market

The cancer segment led the market with a share of 35% in 2025 due to its high prevalence and clearly defined disease progression, which often requires intensive pain management and end-of-life support. Advanced-stage cancer patients frequently need comprehensive symptom control, emotional care, and family support. Greater awareness of hospice benefits among oncology patients and early referrals from hospitals strengthened the segment’s dominant position.

Home-Based Hospice Care Leads Due to Patient Comfort and Preference

The home-based hospice care segment led the U.S. hospice market with a share of 58% in 2025 and is expected to grow at the fastest CAGR of 8.40% in the market during the forecast period, due to strong patient preference for receiving end-of-life care in familiar and comfortable surroundings. It enable personalize care, family involvement, and better emotional support while reducing hospital visits and costs. Expansion of home healthcare services, availability of skilled caregivers, and supportive reimbursement systems further strengthened its dominant position in the market.

For-Profit Hospice Providers Lead Through Scale and Efficiency

The for-profit hospice providers segment held a dominant share of 68% in 2025 and is expected to grow at the fastest CAGR of 8.40% in the market during the forecast period due to its strong financial resources, wide service networks, and ability to scale operations quickly. These providers focus on expanding home-based hospice services, improving operational efficiency, and adopting advanced care technologies. Strategic acquisitions, partnerships, and strong reimbursement-driven models further enhance their market reach and strengthen their leadership position in the industry.

Geriatric Population Drives Hospice Market Dominance

The geriatric segment dominated the U.S. hospice market with a share of 68% in 2025 and is expected to grow at the fastest CAGR of 8.50% in the market during the forecast period due to the high prevalence of chronic, degenerative, and life-limiting diseases among elderly individuals. Aging patients often require continuous symptoms managements, palliative support, and end-of-life care services. Increasing life expectancy, growing awareness of hospice benefits, and a rapidly expanding senior population further contribute to the strong demand for hospice care within this age group.

Home Healthcare Agencies Lead End-User Demand in the U.S. Hospice Market

The home healthcare agencies segment led the U.S. hospice market with a share of 31% in 2025 and is expected to grow at the fastest CAGR of 8.60% in the market during the forecast period due to strong patient preference for receiving end-of-life care in home settings. These agencies provide personalized medical support, pain management, and caregiver assistance while ensuring comfort and familiarity. Rising demand for cost-effective care, expanding home healthcare infrastructure, and favorable reimbursement policies further strengthened their dominant role in delivering hospice across the country.

Medicare Drives Dominance in U.S. Hospice Market Payments

The Medicare segment dominated the market with a share of 72% in 2025 due to its comprehensive coverage of end-of-life care services for eligible patients, especially the elderly population. It significantly reduces out-of-pocket expenses, making hospice care more accessible and affordable. Strong federal reimbursement policies, increasing enrollment in Medicare programs, and the rising aging population further strengthen its leading position as the primary payment source for hospice services.

Top Companies in the U.S. Hospice Market

Leading companies in the market include VITAS Healthcare, Amedisys, Gentiva, LHC Group, Inc., Brookdale Senior Living, Inc., Crossroads Hospice, and Seasons Hospice & Palliative Care. These players are strengthening market growth through expanded home-based hospice care services, integrated palliative care programs, and advanced patient support solutions. Continuous investments in telehealth, care coordination technologies, and strategic partnerships with hospitals and long-term care facilities are further enhancing their leadership in delivering high-quality end-of-life care across the United States.

Segments Covered in the Report

By Service Type

  • Routine Home Care
    • In-home Nursing care
    • Caregiver Assistance
    • Symptom Management
  • Continuous Home Care
    • Crisis Care
    • Intensive Symptom Monitoring
  • Inpatient Respite Care
    • short-term Family Relief
    • Skilled Nursing Respite
  • General Inpatient Care
    • Pain Management
    • Acute Symptom Stabilization
  • Bereavement Support Services
    • Family Counseling
    • Spiritual counseling
    • Grief Therapy

By Diagnosis

  • Cancer
    • Lung Cancer
    • Breast Cancer
    • Colorectal Cancer
    • Pancreatic Cancer
    • Others
  • Cardiovascular Diseases
    • Congestive Heart Failure
    • Stroke
    • Coronary Artery Disease
  • Neurological Disorders
    • Alzheimer’s Disease
    • Parkinson’s disease
    • ALS
    • Dementia
  • Respiratory Diseases
    • COPD
    • Pulmonary Fibrosis
  • Renal Diseases
    • Chronic Kidney Disease
    • End-stage Renal Disease
  • Infectious Diseases
    • HIV/AIDS
    • Sepsis-related Conditions
  • Others
    • Liver Failure
    • Diabetes-related Complications
    • Frailty Syndrome

By Care Setting

  • Home-based Hospice care
  • Hospice Centers
  • Hospitals
  • Skilled Nursing Facilities
  • Assisted Living Facilities

By Ownership

  • For-profit Hospice Providers
    • Large Corporate Chains
    • Independent Providers
  • Non-profit Hospice Providers
    • Community-based Organizations
    • Religious Organizations
  • Government-owned Hospice Providers

By Age Group

  • Pediatric
  • Adult
  • Geriatric
    • 65-74 Years
    • 75-84 Years
    • 85+ Years

By End User

  • Hospitals
  • Home Healthcare Agencies
  • Long-term Care Centers
  • Hospice Centers
  • Nursing Homes

By Payment Source

  • Medicare
    • Traditional Medicare
    • Medicare Advantage
  • Medicaid
  • Private Insurance
  • Out-of-pocket Payments
  • Charity & Donations