Home Health Care Services — Business Survival Rate
An estimated 59% of home health care services businesses survive their first 5 years, based on U.S. Census Bureau Business Dynamics Statistics. The annual business closure rate is 10.0%.
Is Home Health Care a Good Business to Start?
With a 59% five-year survival rate, home health care services is near the national average (~50%). This means roughly half of new entrants will still be operating after 5 years — typical business risk that rewards solid planning and execution.
The annual exit rate of 10.0% indicates moderate turnover. Success depends on differentiation, location, and operational efficiency rather than inherent industry advantages.
Entry vs. Exit Rates
Annual rate of new businesses opening versus existing businesses closing.
Net positive: more businesses opening than closing (+3.8 pp spread).
Job Creation & Destruction
The industry is adding jobs faster than losing them — a positive sign for both workers and new business owners looking to hire. Total employment: 1,654,249 workers across 25,764 firms.
Want to know how much home health care services businesses actually make?
See full revenue benchmarks for Home Health Care Services →Frequently Asked Questions
- What percentage of home health care services businesses fail?
- Approximately 41% of home health care services businesses fail within their first 5 years. The annual closure rate is 10.0%, with 2,501 firms closing permanently in 2023.
- Is the home health care services industry growing or shrinking?
- The home health care services industry is currently growing with a net job creation rate of +5.7% per year. New businesses are entering at 13.8% while 10.0% close annually.
Source: U.S. Census Bureau, Business Dynamics Statistics (2023). Survival rate estimated from annual exit rates.