Abstract:

Three trends that have been responsible for the current growth of the alternate site market are identified by the author. These include, first, "the age wave": the aging of the US baby boomer population, who typically prefer treatment in alternate site settings. The second trend is increasing managed care penetration, covering up to a projected 93% of the American population by the year 2000. Third is continuing, rapid market consolidation among integrated delivery networks and others involved in healthcare delivery financing and clinical care. Major impacts on alternate site providers are discussed, and include the need to position an agency as either a contractor or a subcontractors, and choosing whether to become a low cost or a more cost effective provider. Physician market opportunities in the alternate care market are also discussed. Growth in the home care market is projected to reach $89 billion by the year 2001, with the largest growth in intermittent services.