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Senior Care: Reimagining The Age-Old Problem, a $355 Billion Opportunity

This article is part of our four-part series on building a better healthcare system. Explore the other parts of the series: Building a Better Healthcare System: Continuing Trends, Behavioral Health: The Massive ROI Behind Unlocking Happiness, Women’s Health: Unlocking Immense ROI for the Predominant Healthcare Decision-Maker.

Globally, the U.S. lags behind many other nations in its support for older adults,² due in part to established cultural and systemic issues, including massive underinvestment in cost-effective, preventative solutions to meet the growing senior care need. The COVID-19 pandemic exacerbated an already widespread loneliness epidemic among older adults, intensifying mental health issues, accelerating cognitive decline and placing even greater pressure on the senior care system.³ Over the past decade, the U.S. senior population has seen its largest-ever numerical gain, a trend set to continue as the Baby Boomer generation ages and life expectancy continues to rise.⁴ By 2030, 20% of the U.S population is projected to be over the age of 65 — a demographic shift that will further strain the U.S. healthcare system, introducing financial and operational challenges felt by patients, providers, payors, and society at large.⁵

The Senior Care Dilemma: Rising Needs, Limited Resources

Seniors represent a diverse demographic with varying health conditions, life experiences and backgrounds, and their healthcare needs tend to differ from those of younger generations. As a growing number of seniors manage multiple chronic conditions, there is a greater need for more complicated chronic care management that costs on average 5x more than acute care.⁶ The financial burden of senior healthcare falls disproportionately on federal resources as seniors gain eligibility for Medicare at age 65. By 2030, half of the entire U.S. federal budget is projected to be spent on senior care, straining our system further.⁷

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As rising care costs, worker shortages and mobility challenges limit seniors’ access to traditional healthcare settings, unpaid family caregivers are taking on a larger role in senior care management: 17% of Americans provide unpaid care to adults over the age of 50, spending, on average, 23.7 hours a week managing care.⁸ However, despite caregivers’ crucial role in managing their loved ones’ health, federal and state support for unpaid caregivers remains inadequate. Many caregivers lack adequate training and financial resources, leading to mental health struggles, physical exhaustion and financial insecurity.⁹

Reimagining Senior Care: A Future of Innovation and Support

At FTI Consulting, we believe that the key to transforming the future of senior care lies in delivering an innovative, integrated experience for both seniors and caregivers across the five key dimensions of the healthcare consumer experience: care, compassion, convenience, content and cost. Through collaboration with ecosystem players, we envision a reimagined senior care system in which:

Care: There is universal access to advanced treatments, digital tools and technology-enabled processes for care coordination to enable seniors and their caregivers to effectively manage complex conditions, including the associated appointments, medications and rehabilitation needs.
Convenience: “Anytime, anywhere care” becomes the norm as (1) demand and supply for senior care and resources are optimized, (2) telehealth, remote patient monitoring and mobile health services are implemented at scale, and (3) digital enablement streamlines coordination and workflow, reduces administrative burden and enhances communication.
Compassion: Communities are incentivized to actively engage in senior care, helping to alleviate the burden on existing caregivers and granting seniors access to personalized resources and emotional support that make them feel valued and cared for as they age.
Content: Seniors and caregivers are empowered with clear, accessible health information, specifically as it relates to Medicare and insurance, helping them make informed decisions and navigate efficiently throughout the care experience.
Cost: Reimbursement models cover alternative modalities and treatments beyond hospital-based care to make high-quality care more affordable, and financial incentives, subsidies and tax benefits are offered to ease the financial burden of caregiving.

Building a Smarter, More Compassionate Senior Care System

To achieve this vision, all players in the ecosystem — hospitals, payors, investors, employers and government — must play their part:

Building a Smarter, More Compassionate Senior Care System

Hospitals enable “anytime, anywhere” care to enhance the senior care experience and reduce unnecessary hospital visits:

Telehealth and mobile solutions that extend the reach of licensed providers to support at-home caregiving
Remote patient monitoring and AI data-driven predictive analytics for seniors to proactively intervene when risks are identified
Senior-specific hospital rooms, designed with mobility assistance and tailored to meet the unique needs of older adults
Technology-enabled processes to support clinicians with data-driven insights that tailor the care they provide to seniors
Advanced discharge planning to prepare seniors and caregivers for the transition out of the hospital

Payors initiate more affordable and preventative care by building comprehensive and robust reimbursement models:

Enhanced reimbursement for alternative care models (and types of caregivers) that reduce reliance on costly hospital care and address caregiver burdens
Increased coverage for preventative screenings and wellness programs to address health issues at earlier stages and reduce hospital admissions
Tailored support for caregivers to improve their coordination with payors
Enhanced education for caregivers and seniors on chronic conditions and care-management tools

Federal, state and local governments drive the recognition and awareness of the massive demographic shift through policy, education and funding via:

Public policies that promote alternative care models, including expanded coverage and enhanced education on diverse care options
Legislation focused on caregiver support, including tax credits, employer-mandated paid family and sick leave, and enhanced technology and community services
Public education campaigns to encourage retirement planning and reduce future reliance on government assistance
Initiatives to expand the labor pool, including recruitment campaigns, wage subsidies and training programs
Support for community-based care alternatives, including intergenerational living communities

Employers attract and retain the best talent by offering flexibility for caregivers, with incentives:

Dedicated paid time off for caregiving responsibilities
Flexible work arrangements, including remote work options
Employee Assistance Programs that provide dedicated counseling and support for caregivers

Investors redefine the future of care by investing in entrepreneurs and companies addressing unmet needs:

Enhancing care coordination to drive more efficient and comprehensive care delivery
Optimizing allocation of resources and services through supply and demand matching
Increasing access to innovative senior care solutions outside of traditional hospital settings, such as mobile, home, remote and standalone care options
Expanding caregiver access and availability by increasing the variety of resources and incentives available to individuals engaged in the senior care space
Developing affordable, cost-effective models that are compliant with regulations and eligible for government-funded insurance

Senior care represents a massive U.S. market opportunity for those that are able to address the challenges posed by fragmented, costly and inefficient systems. In recent years, countries worldwide have begun pioneering innovative initiatives to confront this long-standing issue, offering valuable insights into what a reimagined future of senior care looks like.

In Switzerland, the government has launched a “time bank”: young people deposit time they spend volunteering with seniors into their social security accounts which, when they themselves age, can be redeemed for volunteer hours from younger generations.¹⁰ In Australia, the government recently established a comprehensive Support-at-Home program that provides funding and resources to help seniors age at home and avoid hospitalizations.¹¹

Innovative approaches like these, which change how we think about, reimburse and value senior care, offer a new vision for the U.S. system. The opportunity is clear: by redefining senior care across five core dimensions — care, compassion, convenience, content and cost — the United States could be on the cutting edge of a healthcare revolution that has ramifications globally.

Footnotes:

1: “Geriatric Care Services Market Size, Share & Trends Analysis Report by Service (Home Care, Nursing Care, Adult Day Care), by End-use (Hospitals, Long-term Care Facilities), and Segment Forecasts, 2023 – 2030”, Grand View Research (2023).

2: Gunja, Munira, et al. “Health Care Affordability for Older Adults: How the U.S. Compares to Other Countries.” The Commonwealth Fund, (2024).

3: Lebrasseur, Audrey, et al. “Impact of the COVID-19 Pandemic on Older Adults: Rapid Review.” JMIR aging 4, no. 2 (2021).

4: Caplan, Zoe. “U.S. Older Population Grew From 2010 to 2020 at Fastest Rate Since 1880 to 1890.” U.S Census Bureau, (2023).

5: Vespa, Jonathan, et al. “Demographic Turning Points for the United Sates: Population Projections for 2020 to 2060.” U.S. Census Bureau, (2018).

6: Hayes, Tara and Serena Gillian, “Chronic Disease in the United States: A Worsening Health and Economic Crisis.” American Action Forum, (2020).

7: de Rugy, Veronique. “Spending Surge for Seniors: Medicare and Social Security Total 50 Percent of Federal Spending.” Mercatus Center, (2022).

8: Samuels, Claire. “Caregiver Statistics: A Data Portrait of Family Caregiving.” A Place for Mom, (2023).

9: Ibid.

10: “Swiss People Volunteer Now and Time Bank Lets Them Access Senior Care Later.” CBRE Canada, (2022).

11: “Features of the new Support at Home program.” Australian Government Department of Health, (2025).