Home-Based Care Outlook: 55% of Leaders Name Staffing as Top Challenge, Tech Investment on Rise

Optimism is on the rise for 2025 as providers shift their focus toward strategic growth, and to leveraging technology investments to address persistent staffing challenges and enhance patient outcomes.

That’s according to the Home Health Care News Home-Based Care Outlook Survey for 2025. Findings from the survey, which was sponsored by Homecare Homebase, were recently released.

The survey results reflect the views of 103 professionals in the home-based care industry. Among these respondents, 75% occupy C-suite positions, including vice presidents and directors. Regarding the daily census, 39% of organizations report an average of 1 to 100 clients, while 24% serve between 101 and 500 clients; most of these organizations operate within a single state.

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Staffing has emerged as the industry’s most significant challenge, with 30% of respondents indicating that their companies could achieve the greatest business efficiencies by addressing this area. On a positive note, staffing concerns have decreased by 4% compared to previous assessments.

Although worries about changing payment dynamics have increased, staffing technology is expected to yield the highest return on investment among technology expenditures.

Respondents were nearly evenly divided in their expectations regarding agency profit margins. The majority believe margins will remain stable in 2025 compared to the previous year. Additionally, half of the respondents reported that Medicare Advantage negatively impacts margins and will likely continue to do so.

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Growth is a primary focus, with 65% of respondents citing organic growth as their preferred strategy for the upcoming year. Only 19% mentioned considering joint ventures or partnerships, and even fewer are considering mergers and acquisitions or new locations. Moreover, 52% plan to continue with their current offerings rather than seek out new care types.

Technology investment rising

As expected, the key drivers for technological investments in 2025 include improved patient outcomes, monitoring and the need to reduce operating costs. Consequently, 31% of respondents identified operational process improvement as the top factor influencing these technological ventures.

“The results of the 2025 Home-Based Care Outlook Survey caught our attention, especially the growing emphasis on technology,” Homecare Homebase President Luke Rutledge told Home Health Care News. “With a 16% rise in technology investment interest, it’s clear that agencies are prioritizing solutions to streamline operations, improve documentation and boost clinical satisfaction. We’re excited to see technology take the lead in 2025.”

These findings about technology align with recent Home Health Care News reporting on the subject, with at-home care executives pointing to the immense promise that a variety of technologies have for enhancing operations and financial performance.

For instance, artificial intelligence (AI) and machine learning are “game changers” that can improve early detection of potential health issues and enable more proactive interventions, Homewatch CareGivers President Todd Houghton told HHCN in December 2024.

Other technologies such as telehealth similarly hold immense promise for streamlining operations and driving efficiency.

“Alternative ways to share data or visit a provider through telehealth and remote patient monitoring should continue to grow because people will demand them,” Mike Johnson, chief researcher for home care innovation at Bayada Home Health Care, told HHCN. “If you consider the time it takes to see your provider, the time it takes to leave work, the cost of parking and gas – the economics [of telehealth] alone are excellent.”

In terms of what technology will drive the greatest return on investment, 20% of respondents to the 2025 Outlook survey identified staff training technology. That narrowly edged out EHR/EMR technology, chosen by 19% of respondents. Predictive analytics/AI and automation technology both were identified by 18% of survey respondents as driving the greatest ROI in 2025.

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