Mid-Year Check-In: 7 Key Trends Shaping Non-Medical Home Care for the Rest of 2025

We’re halfway through 2025, and one thing is clear: the non-medical home care industry is undergoing rapid change. While demand for home care services continues to rise, most agencies are feeling the pressure of workforce shortages, rising costs, and a tightening regulatory environment. 

But with change comes opportunity. Home care agencies that remain agile, embrace strategic improvements, and invest in what matters most – people, processes, and quality of care – are positioning themselves for sustainable growth over the coming months and years.

Now is a great time to refocus your efforts, build on what’s working, and explore new ways to stay competitive in the shifting home care landscape.

This mid-year check-in highlights seven key trends that are shaping the rest of 2025 for non-medical home care providers. From caregiver retention and tech adoption to care plan personalization and compliance, each trend signals where the industry is heading – and what it will take to stay aligned.

1. Demand keeps rising – but so does the challenge of client acquisition
2. The caregiver shortage isn’t easing – it’s evolving
3. Operational costs are rising – and profit margins are tightening
4. Smart technology and virtual tools are becoming essential
5. Tighter oversight: Medicaid compliance and EVV enforcement take center stage
6. Personalized, client-centered care plans are becoming the new standard
7. Digital infrastructure is emerging as a significant competitive advantage

7 key trends driving change in non-medical home care

The second half of 2025 is set to test agency resilience but also reward those who adapt with purpose. Here are seven key trends that will shape how non-medical home care providers operate, grow, and deliver quality care in the months ahead.

Trend #1: Demand keeps rising – but so does the challenge of client acquisition

The aging population continues to drive demand for non-medical home care across the US, with nearly 73 million Americans now aged 65 or older (as of mid-2025). This demographic shift is accelerating faster than many agencies can scale, particularly as more seniors are expressing a preference to age in place with support from homemaker and personal care services.

Despite this surge in demand, home care providers report that client acquisition is becoming increasingly difficult. This is likely due to a combination of factors, including caregiver shortages, high turnover rates, increased competition in local markets, and a lack of effective digital marketing strategies.

To make the most of this growing market while staying competitive, look for ways to:

• Refine your value proposition: Clearly articulate what sets your agency apart – whether it’s caregiver consistency, personalized care plans, or client/family communication tools.
• Optimize local SEO: Ensure your agency appears when families search for ‘home care near me’ by enhancing your Google Business Profile and soliciting client reviews.
• Align caregiver hiring with demand: Track your intake capacity and ensure recruiting efforts match expected client volumes – don’t let staffing gaps stall growth.
• Retain caregivers to protect continuity: High turnover can disrupt client care and reduce referrals. Retention strategies, such as caregiver recognition and flexible scheduling, are now essential.
• Streamline the inquiry-to-intake process: Make it easier for prospective clients to get started with user-friendly intake forms, fast follow-ups, and timely assessments.
• Strengthen referral relationships: Re-engage with hospital discharge planners, senior centers, and primary care providers who can refer clients ready for support.
• Invest in digital marketing: Help clients and their families make confident decisions more quickly by regularly publishing educational content, social proof (such as client recommendations), and service clarity on your website and social media pages.

Trend #2: The caregiver shortage isn’t easing – it’s evolving

As mentioned above, caregiver availability is now closely tied to how effectively agencies can grow. In 2025, the US Bureau of Labor Statistics projects a need for over 800,000 additional home care workers by 2031, with demand already outpacing supply in many regions. 

However, the caregiver shortage hasn’t just persisted – it’s evolved. Today’s workforce is seeking fair pay, flexible scheduling, open communication, career development opportunities, and genuine appreciation for the work they do – and they will gravitate toward agencies that can deliver on these expectations.

In this climate, recruiting caregivers is no longer just about filling open shifts. It’s about building a well-supported, satisfied, and sustainable workforce that will remain loyal to your agency over the long term. 

To stay competitive in this evolving labor market, focus on:

• Targeted recruitment: Tap into local job boards, community outreach, and referral programs to attract caregivers who align with your agency’s values.
• Fast, mobile-friendly hiring processes: Make it simple for applicants to apply, interview, and onboard – all from their smartphones.
• Onboarding that builds loyalty: Introduce new hires to your agency’s mission, offer mentorship programs and ongoing training, and set clear expectations from the start.
• Flexible scheduling options: Meet caregivers where they are – especially part-time workers or those juggling caregiving responsibilities with family commitments. Accommodating their personal preferences can significantly improve satisfaction and retention.
• Equip caregivers with the right tools: Provide easy-to-use tools, like the Aaniie caregiver mobile app, to help staff stay organized, connected, and confident in their day-to-day tasks.
• Caregiver recognition programs: Use tools like Aaniie’s embedded Caregiver Rewards to help boost morale and drive long-term engagement through consistent, meaningful recognition and reward.

To learn more about how recognition programs impact caregiver satisfaction and retention, read our recent blog, ‘Recognize, Reward, Retain: The Case for Caregiver Loyalty Programs in Home Care.’

Trend #3: Operational costs are rising – and profit margins are tightening

Inflation, wage growth, insurance premiums, and administrative overhead continue to squeeze home care budgets in 2025. According to a recent industry survey, 64% of non-medical providers say rising staff, supply, and service costs are hindering growth. 

At the same time, clients and referral partners still expect consistently high-quality, dependable care. The challenge is clear: how to streamline operations and reduce costs without sacrificing service excellence?

The answer lies in efficiency, standardization, and strategic investments. Agencies that adopt lean systems and more intelligent workflows can protect margins – and even thrive – despite current economic uncertainty.

Strategies to ease the cost squeeze and boost efficiency:

• Modernize your tech stack: Replace outdated or siloed tools with an all-in-one platform that handles recruitment, scheduling, documentation, caregiver and client communications, billing, payroll, and more. With built-in automation features like shift reminders, mileage logging, and payroll processing, this will reduce admin time and overhead, improve data accuracy, and free staff up for higher-level, revenue-generating tasks.
• Standardize administrative processes: Develop clear, documented workflows for areas such as onboarding, care plan management, and incident reporting. Standardization will minimize rework, lower staff fatigue, and support compliance.
• Gain complete visibility into your true costs: Set up dashboards that track key metrics in real-time – such as overtime, mileage, no-shows, and supplies – to identify areas for cost savings. Regularly review spending patterns to identify inefficiencies, tighten budgets, and inform better pricing and staffing decisions.

Rising costs are nearly impossible to avoid – but falling behind is optional. Agencies that act with efficiency and intentionality will be best positioned to thrive in the second half of 2025 and beyond.

Trend #4: Smart technology and virtual tools are becoming essential

Home care agencies that lag behind on tech adoption risk being left out of an increasingly digital care ecosystem. In 2025, virtual care coordination, digital documentation, and real-time communication tools are no longer ‘nice to have’ – they’re expected by clients, families, caregivers, and referral partners alike.

Platforms that support HIPAA-compliant messaging, remote care updates, and seamless scheduling not only improve efficiency but also help build trust with clients and their families, who value transparency and prompt responses. 

And with telehealth still playing a limited role in non-medical home care, the focus is shifting to tools that support caregivers in the field and improve coordination with office staff.

To stay competitive, consider:

• Using a caregiver mobile app for EVV, digital clock-ins, task completion, care notes, and communication.
• Offering a client and family portal that keeps clients and families informed, involved, and engaged in real-time.
• Ensuring your tech tools are cloud-based, secure, and accessible on the go.
• Streamlining workflows between field staff and office teams to minimize gaps and delays.

Tech doesn’t replace personal care – it supports it. Agencies that can build digital fluency in the coming months will be better equipped to scale, respond to client needs, and stand out in a crowded market.

Trend #5: Tighter oversight: Medicaid compliance and EVV enforcement take center stage

Regulatory scrutiny is intensifying in 2025, particularly for agencies serving Medicaid clients. The 80/20 rule – which requires at least 80% of Medicaid payments to be spent on direct care worker compensation – is prompting agencies to reassess their resource allocation, payroll strategies, and financial reporting.

At the same time, electronic visit verification (EVV) is being more strictly enforced across many states, with increased audits and documentation requirements now in play. Agencies that fail to capture accurate visit data or submit records on time may face delayed reimbursements or even penalties.

While these are two of the most high-profile shifts, they’re part of a broader tightening of Medicaid documentation, billing, and data privacy standards that all home care providers should keep pace with.

To stay compliant and audit-ready, consider:

• Reviewing EVV data regularly to ensure visits are logged accurately and in real-time – a must for passing audits and avoiding claim denials. Platforms like Aaniie Care (formerly Smartcare Software) provide built-in EVV tracking and integrated Insights and Business Intelligence tools, enabling agencies to track trends, audit logs, and care delivery metrics in real time.
• Training caregivers and admin staff on expectations for Medicaid billing, visit verification, and incident reporting – consistent input leads to fewer errors and audit flags.
• Staying current on privacy rules by reinforcing HIPAA compliance and educating staff on state-specific data protection and secure communication protocols.
• Consolidating compliance tools by using an all-in-one system like Aaniie that includes a robust EVV solution – linked to scheduling, billing, payroll, and reporting – to enhance security, reduce admin errors, save time, and be audit-ready.

Staying ahead of these requirements isn’t just about avoiding penalties – it’s key to building a sustainable, Medicaid-friendly operation in the years ahead.

For more tips on preparing for the 80/20 rule, you can read our latest blog: Future-Proofing Your Home Care Agency: How to Optimize Operations Now for the 80/20 Shift.

Trend #6: Personalized, client-centered care plans are becoming the new standard 

As the home care industry grows and consumer expectations rise, personalizing care plans to reflect a client’s lifestyle, preferences, cultural values, and long-term goals is quickly shifting from a ‘nice to have’ to a ‘need to have.’

Tailored, client-centered care requires more effort, but it significantly improves satisfaction, strengthens trust with families, and supports better outcomes. More agencies are recognizing that personalization isn’t just about care tasks; it’s also about building meaningful, consistent relationships that support a better quality of life for their seniors in the long term.

To embrace personalization at scale:

• Use digital intake and assessment tools to gather detailed lifestyle, communication, and preference data early in the care journey.
• Train caregivers on cultural sensitivity, communication skills, and observing changes in client routines and behaviors.
• Match caregivers with clients thoughtfully, based on personality, language, experience, and other factors – not just availability – to create highly compatible matches that last.
• Communicate regularly with clients and their families, involving them in care discussions, care plan reviews, progress reports, etc. – always keeping the client at the center of all communications.
• Keep care plans dynamic, updating them regularly to reflect evolving client needs, goals, and feedback.
• Regularly collect feedback on each client’s care experience through regular feedback surveys, questionnaires, team feedback, online reviews, or in-app tools. Aaniie includes a 360-degree satisfaction tracking system, allowing clients, families, and caregivers to send instant feedback, and is easily accessible via a point-of-care mobile app or client/family portal. 

By making care more personal and client-centered, agencies can differentiate themselves in a crowded market – and boost retention on every side of the care triangle.

Trend #7: Digital infrastructure is emerging as a significant competitive advantage

In 2025, having the right digital infrastructure is a critical factor in staying competitive, efficient, and compliant. As non-medical home care agencies navigate tighter margins, rising client expectations, and increased regulatory pressures, outdated or disconnected systems are holding many back.

Agencies that invest in scalable, cloud-based solutions are better positioned to:

• Save significant admin time and reduce costs.
• Streamline operations and automate routine tasks to improve efficiency and productivity.
• Enhance data storage, management, and security.
• Ensure secure, HIPAA-compliant documentation and communication.
• Adapt quickly to new compliance and reporting requirements.
• Deliver a smoother, more engaging experience for clients, families, and staff, boosting satisfaction and retention.
• Support long-term scalability and growth.

If your agency is still relying on paper-based processes or juggling disconnected tools, now is the time to modernize. A robust, all-in-one platform helps unify everything from scheduling, billing, and payroll to caregiver recruitment, client acquisition, and performance tracking – improving accuracy, reducing workloads, and giving you the visibility needed to make informed, data-driven decisions.

Tech can’t replace your team – but it can empower them to deliver higher-quality care with greater confidence and less stress.

Read our recent article to explore how to find the right all-in-one solution for your agency: 8 Key Features Every All-in-One Home Care Platform Should Include.

The next 6 months in home care: prepare, adapt, and lead

As we move through the second half of 2025, home care agencies face challenges and opportunities like never before. Staying ahead means embracing change – from navigating workforce demands and regulatory shifts to adopting smarter technology and delivering truly personalized care. 

Providers that focus on agility, operational efficiency, and investing in their people will not only survive but thrive in this evolving landscape.

Ready to simplify compliance, boost client and caregiver satisfaction, and streamline operations? 

Aaniie’s all-in-one platform brings together everything you need to manage today’s complexities – while building the digital infrastructure to meet tomorrow’s demands. 

With integrated tools for recruitment and retention, scheduling, EVV, billing, payroll, reporting, payment processing, and much more, Aaniie will ensure your agency stays efficient, compliant, and competitive well into the future.