Home Health Care Services Revenue Benchmarks
The average home health care services business in the United States generates $3.9M in annual revenue, according to the U.S. Census Bureau Statistics of U.S. Businesses (SUSB 2021). There are 27,433 home health care services businesses in the U.S., employing 1,582,974 workers with an average profit margin of 13.0%. The average employee in this industry earns $40K per year (Bureau of Labor Statistics QCEW 2023).
What Does a Home Health Care Business Actually Do?
Agencies providing medical and non-medical care in patients' homes — skilled nursing, physical therapy, home health aides, hospice care. Medicare-certified agencies serve seniors; private-pay agencies serve younger disabled and elderly.
Who buys: Medicare beneficiaries post-hospital, Medicaid recipients, private-pay families arranging aging-in-place care.
Average Revenue
$3.9M
per year
Profit Margin
13.0%
industry average
Revenue / Employee
$68K
per year
Total Businesses
27,433
in the US
Est. Owner Income
$509K
small business avg
Labor Cost
50.0%
of revenue
Avg Employee Wage
$40K
per year (BLS)
Market Saturation
8.3
firms per 100K people
How Much Do Home Health Care Services Charge?
Home health agencies charge per visit or per hour, mostly reimbursed by Medicare, Medicaid, or private insurance.
| Service | Typical range |
|---|---|
Home health aide (private pay) | $25–40/hour |
Skilled nursing visit | $100–200/visit |
Physical therapy visit | $100–200/visit |
Medicare episode of care (60 days) | $2,500–4,500 |
Ranges based on industry rate surveys and typical published pricing. Actual quotes vary by city, business size, and job complexity.
Complete home health care business plan
A 12-section data-backed business plan for a home health care services business — executive summary, market analysis, competitive landscape, revenue model, 3-year financial projections, operations, marketing, staffing, funding request. Pre-populated with real Census, IRS, and BLS data on this industry. Free to view.
Cost Structure — Where Every $100 in Revenue Goes
Approximate P&L breakdown for the home health care services industry. Labor share and net profit are grounded in Census SUSB and IRS SOI data. Other lines are split using sector-typical ratios.
| Category | Per $100 revenue | Per typical business | What's in it |
|---|---|---|---|
Medical supplies & pharma | $13 | $507K | Disposables, medications, lab reagents, implants, and other direct patient supplies. |
Wages & benefits | $50 | $2.0M | Payroll for all employees at the business (owner comp not included for small owner-operators). |
Rent & facilities | $6 | $217K | Rent or mortgage on business location plus utilities tied to the space. |
Marketing & advertising | $2 | $72K | Google/Meta ads, SEO, print, referral fees, event sponsorships. |
Other operating costs | $17 | $652K | Malpractice insurance, billing services, equipment leasing, regulatory compliance. |
Net profit | $13 | $509K | What remains for the owner or shareholders after all business expenses. |
Directionally accurate for a typical business in the industry. Individual businesses vary widely — a franchise may run a very different cost mix from an independent, and older established businesses often have lower labor share than newer ones.
Average Revenue by Business Size
Industry Dynamics (Census BDS 2023)
New Business Rate
13.79%
openings/year
Closure Rate
9.97%
closings/year
Net Job Growth
+5.67%
annual
Businesses Closed
2,501
in 2023
Firm Count Trend
Should You Start a Home Health Care Business?
Startup Cost
$75K – $300K
Break-Even
4 months
5-Year Survival Rate
70.0%
Related Industries
Frequently Asked Questions
- What does a home health care services business do?
- Agencies providing medical and non-medical care in patients' homes — skilled nursing, physical therapy, home health aides, hospice care. Medicare-certified agencies serve seniors; private-pay agencies serve younger disabled and elderly. Medicare beneficiaries post-hospital, Medicaid recipients, private-pay families arranging aging-in-place care.
- How much do home health care services charge?
- Home health agencies charge per visit or per hour, mostly reimbursed by Medicare, Medicaid, or private insurance. See the pricing table above for typical rates by service type.
- How much does the average home health care services make per year?
- The average home health care services business generates $3.9M in annual revenue, based on U.S. Census Bureau data (SUSB 2021). After expenses, the estimated owner profit is $509K per year at a 13.0% profit margin.
- How many home health care services businesses are there in the US?
- There are 27,433 home health care services businesses operating in the United States, employing a total of 1,582,974 workers.
- How much does it cost to start a home health care services business?
- Startup costs for a home health care services business typically range from $75K to $300K, with a 5-year survival rate of 70.0%.
- What is the average salary in the home health care services industry?
- The average employee in the home health care services industry earns $40K per year, according to Bureau of Labor Statistics data (QCEW 2023).
Industry Growth & Survival
The home health care services industry is actively growing — adding jobs at a net rate of 5.7% per year. New establishments are opening faster than existing ones close (13.8% entry vs 10.0% exit), indicating healthy demand.
Approximately 59% of home health care services businesses survive their first 5 years. This is near the national average (~50%), with typical business risk. In 2023, 2,501 firms in this industry closed permanently.
Employment & Wages
The average employee in the home health care services industry earns $39,780/year. This is below the national average of ~$65K — typical for this sector. With 49,400 establishments employing 1,629,522 people, the typical business has about 33 employees.
Industry Trend (2000–2023)
The home health care services industry has grown 154% since 2000 (from 10,145 to 25,764 firms).
See full historical statistics →Compare Home Health Care Services revenue with other industries: