Why the infusion market is shifting to at-home care

Modern Healthcare – Tuesday, October 21, 2025
By Diane Eastabrook

Health systems are rethinking how to deliver infusion therapies, as payers and patients increasingly prefer care at home over clinical settings.

The changing dynamics have led some health systems to expand existing home infusion businesses, while others are partnering with vendors to deliver some or all infused drugs to patients where they live. The shift is sparking consolidation of the highly fragmented home infusion industry as private equity-backed companies expand into the space and compete for patients.

“This is a lucrative service offering. There are very profitable margins for people who provide infusion services,” said Michael Buchanio, managing director for KPMG’s healthcare and life sciences deal advisory and strategy practice.

Here’s what to know about how at-home delivery is changing the infusion services market.

How big is the infusion market?

About 3.2 million Americans receive medication through a needle or catheter to treat an acute or chronic illness, according to a report last year from investment banking company Bourne Partners. The report said approximately 16% of patients opted for infusions at home versus hospitals, physicians’ offices and ambulatory clinics. The report forecast the home setting will account for about 20% of infusions by 2027.
Who are the major players in home infusion?

Option Care Health, CVS Health subsidiary Coram Healthcare and UnitedHealth Group’s Optum unit are among the largest players in the space. However, a growing number of private equity-backed companies are also muscling into the highly fragmented industry.

BrightSpring Health Services — backed by private equity firm KKR and Company — offers pharmacy, home infusion and home health services. President and CEO Jon Rousseau told analysts during a second quarter earnings call in August that the company is pushing more aggressively into home infusion and looking to make acquisitions in the space.

Other private-equity-backed players include Soleo Health and KabaFusion.

KabaFusion is owned by Nautic Partners and offers home infusion services nationwide through 34 locations, said founder and CEO Dr. Sohail Masood. He said the company has been growing about 30% annually and is looking to buy smaller home infusion companies.

Home health benefit managment company CareCentrix announced last month plans to expand its home infusion business to include about 30 immunotherapy drugs for cancer patients. The company aims to partner with insurers to offer its Oncology at Home program in collaboration with providers, said CareCentrix chief medical officer Dr. Paul Mikulecky.

What is driving the shift toward home infusion?

A growing number of drugs, including those that treat Alzheimer’s Disease, Parkinson’s Disease and cancer, can be safely delivered at home.

That’s also where payers and patients prefer treatment.

Health insurers increasingly want members to infuse drugs at home because hospital services can cost twice as much, said Sharon Fry, a partner in the healthcare and life science practice at consulting firm Bain and Company.

Since home infusion is more convenient and preferred by many patients, they are more likely to stick to therapies and stay out of the hospital, said Dr. Gabriel Waterman, vice president of primary care at Scan Group, which offers Medicare Advantage plans in six states.

“It’s almost always cheaper to have someone get home infusion than to pay for an emergency room visit, which can be $1,000. That is really where the significant savings are,” Waterman said.

What are the drawbacks to home infusion?

Home infusion can be an expensive business to operate. Nurses must drive from home to home, treating only one patient at a time. Some medications take several hours to infuse and require clinicians to remain with patients until treatment is completed.

For those reasons, home infusion may not be a cost-effective business in rural communities or in areas where clinical staff is in short supply, KPMG’s Buchanio said.

How are health systems changing care?

Some health systems are expanding their own home infusion operations, while others are partnering with outside vendors to meet the growing demand for home-based care.

Philadelphia-based Penn Medicine provides home infusion to approximately 4,200 patients a day in parts of Pennsylvania, New Jersey and Delaware, said Penn Medicine at Home CEO Joan Doyle.

The health system’s robust home health operation and pharmacy service help it deliver more than half of all infusions to Penn Medicine patients where they live, she said. Doyle said expanding the at-home service makes financial sense as the demand for infused drugs increases.

“The cost of building chairs in a facility, the overhead and the infrastructure in addition to taking up space, which is at a premium now, really weighs in on the decision,” she said.

On the flip side, Memorial Hermann Health System, is outsourcing some home infusion services. In August, the Houston-based health system partnered with home infusion company KabaFusion to provide home-based therapy to patients with certain chronic conditions.

“They have scale and can create the right type of physical framework to build out a home platform,” said Feby Abraham, executive vice president and chief strategy officer.

He said home-based infusions account for about 30% of Memorial Hermann’s infusion business. Abraham said the health system will continue to provide home infusion directly to patients with acute illnesses.

Correction: An earlier version of this story incorrectly said CareCentrix would infuse chemotherapy drugs.

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