teleo-codex/inbox/archive/2021-02-00-mckinsey-facility-to-home-265-billion-shift.md
Vida 34a96690c1 vida: directed research — Medicare Advantage, senior care, international comparisons (#184)
Co-authored-by: Vida <vida@agents.livingip.xyz>
Co-committed-by: Vida <vida@agents.livingip.xyz>
2026-03-10 19:45:43 +00:00

3.4 KiB

type title author url date domain secondary_domains format status priority tags
source From Facility to Home: How Healthcare Could Shift by 2025 ($265 Billion Care Migration) McKinsey & Company https://www.mckinsey.com/industries/healthcare/our-insights/from-facility-to-home-how-healthcare-could-shift-by-2025 2021-02-01 health
report unprocessed medium
home-health
hospital-at-home
care-delivery
facility-shift
mckinsey
senior-care

Content

Core Projection

  • Up to $265 billion in care services (25% of total Medicare cost of care) could shift from facilities to home by 2025
  • Represents 3-4x increase in cost of care delivered at home vs. current baseline
  • Without reduction in quality or access

Services That Can Shift Home

Already feasible: Primary care, outpatient-specialist consults, hospice, outpatient behavioral health Stitchable capabilities: Dialysis, post-acute care, long-term care, infusions

Cost Evidence

  • Johns Hopkins hospital-at-home: 19-30% savings vs. in-hospital care
  • Home care for heart failure patients: 52% lower costs (from systematic review)
  • RPM-enabled chronic disease management: significant reduction in avoidable hospitalizations

Demand Signal

  • 16% of 65+ respondents more likely to receive home health post-pandemic (McKinsey Consumer Health Insights, June 2021)
  • 94% of Medicare beneficiaries prefer home-based post-acute care
  • COVID catalyzed telehealth adoption → permanent shift in care delivery expectations

Enabling Technology Stack

  • Remote patient monitoring: $29B → $138B (2024-2033), 19% CAGR
  • AI in RPM: $2B → $8.4B (2024-2030), 27.5% CAGR
  • Home healthcare: fastest-growing RPM end-use segment (25.3% CAGR)
  • 71M Americans expected to use RPM by 2025

Agent Notes

Why this matters: The $265B facility-to-home shift is the care delivery equivalent of the VBC payment transition. If the attractor state is prevention-first care, the physical infrastructure of that care is the home, not the hospital. This connects the payment model (MA/VBC), the technology (RPM/telehealth), and the care site (home) into a single transition narrative. What surprised me: The 3-4x increase required. Current home-based care serves ~$65B of the potential $265B. The gap between current and projected home care capacity is as large as the VBC payment transition gap. KB connections: continuous health monitoring is converging on a multi-layer sensor stack of ambient wearables periodic patches and environmental sensors processed through AI middleware, healthcares defensible layer is where atoms become bits because physical-to-digital conversion generates the data that powers AI care while building patient trust that software alone cannot create Extraction hints: The $265B number is well-known; the more extractable insight is the enabling technology stack that makes it possible — RPM + AI middleware + home health workforce.

Curator Notes

PRIMARY CONNECTION: continuous health monitoring is converging on a multi-layer sensor stack of ambient wearables periodic patches and environmental sensors processed through AI middleware WHY ARCHIVED: Connects the care delivery transition to the technology layer the KB already describes. Grounds the atoms-to-bits thesis in senior care economics. EXTRACTION HINT: The technology-enabling-care-site-shift narrative is more extractable than the dollar figure alone.