The future of home-based care: Predictions for 2025 and beyond 

Author: Adrian Schauer, CEO of AlayaCare

Last year, the home care industry reached a pivotal juncture, defined by a growing emphasis on technology and workforce transformation. Our 2024 predictions highlighted AI-driven workflow automation, value-based care prioritizing outcomes, personalized care via data analytics, the integration of social determinants in home care, and improved data sharing for coordinated care.

As 2025 begins, the home care industry is on the cusp of another major transformation driven by key advancements in AI that have the potential to completely redefine care delivery. In order to see true change within the industry, this technology needs to be coupled with a willingness to move away from the status quo, alongside strategic shifts in operations and workforce management.

AlayaCare anticipates three primary trends to shape the year ahead: the evolution of AI agents as a proactive, predictive force in care, the application of the home care flywheel to drive incremental improvements across operations, and an intensified focus on caregiver experience to address workforce challenges. Together, these trends offer a roadmap for providers to innovate, thrive, and deliver exceptional care.

AI agents: A new era of smarter, proactive care 

AI has made significant inroads into home care, but 2025 will mark the rise of agentic AI — AI systems that not only support but also act autonomously, proactively identifying opportunities for improvement and taking action without constant human input. This evolution will shift AI from being a tool to becoming a collaborative partner in care that complements and supports caregivers.

Layla, AlayaCare’s AI agent, uses advanced large language models (LLMs) to reduce repetitive administrative tasks and provide instant access to essential client information. It’s designed to seamlessly fit into existing work processes, freeing up time for managers and care staff to focus on delivering personalized, high-quality care.

Layla: streamlining care delivery with AI 

Imagine having a virtual assistant that handles your most repetitive and time-consuming tasks, giving you more time to focus on what matters most — providing exceptional care. That’s exactly what Layla does.

• Complex requests answered: Layla uses agentic workflows to connect data across clients, medications, care plans, and more effortlessly, saving time and clicks, and freeing up your team to focus on delivering high-quality, client-centered care.

• Quick and secure access to crucial information: Retrieve patient summaries, care plans, schedules, and more — all through a simple, secure chat interface — on the go with the highest standards of data security and privacy.

• Organized and personalized care: Layla doesn’t just deliver information — it organizes it in a way that empowers your team to make faster, more informed decisions. By accessing critical insights at their fingertips, caregivers can deliver more personalized and efficient care, improving outcomes and client satisfaction. 

As an AI agent that is fully integrated into your platform, Layla becomes part of your team, accessible through secure messaging. Whether it’s retrieving a care plan or helping refine schedules, since Layla is purpose-built for home-based care, it works quietly and efficiently in the background, ensuring caregivers and managers always have the support they need to excel. 

Layla’s ability to analyze historical health data and interactions allows it to refine recommendations, providing increasingly personalized and accurate support for both caregivers and administrators. By acting as a collaborative partner and extension of the care team, agentic AI empowers providers to scale operations efficiently while maintaining high-quality, client-centered care. 

The home care flywheel: Incremental improvements with exponential impact 

In 2025, the “home care flywheel” will become a central strategy for agencies aiming to achieve sustainable growth. This concept focuses on continuous, small-scale improvements across all workflows, generating compounded results over time. Every workflow, from intake to billing, needs to get incrementally better on a continuous basis to create transformative outcomes across the organization. 

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• Workforce optimization: Focus on enhancing efficiency, productivity, and employee satisfaction by aligning schedules and caregiver matching based on skills. This avoids over or underutilization of staff while fostering engagement and improving outcomes. For example: Matching visits with caregivers that are optimally suited based on skills, location, and availability can help caregivers feel more engaged and satisfied with their schedule and shifts.

• Data-driven operations: Analytics will play a critical role in identifying bottlenecks, improving efficiency, and ensuring resources are allocated where they are needed most. Agencies using AlayaCare’s data-driven platform can visualize trends like time taken to process intakes and referrals, service hours, missed visits and make real-time adjustments to operations.

• Client-centric innovations: Enhancing the client experience — from intake to follow-up — through incremental improvements, such as faster response times, more personalized care, and communicating updates and progress will improve satisfaction and retention.

The flywheel approach represents a shift in mindset. Instead of chasing disruptive, all-at-once changes, agencies will focus on small, continuous advancements that, when compounded, create a resilient, high-performing business model. 

Employee experience: The cornerstone of competitive advantage 

The caregiving workforce will always remain the backbone of home care. Yet, shortages and high turnover rates continue to challenge agencies. In 2025, retaining and empowering caregivers will be just as critical as recruiting them. For providers to thrive, they need to position themselves as premier employers beyond simply remuneration. Agencies that prioritize employee experience will not only address workforce shortages but also deliver better outcomes for clients. 

Prioritizing caregiver well-being: 

• Streamlined processes and tools: Caregivers need intuitive, easy-to-use technology that minimizes time spent on administrative tasks. AI-powered tools like Layla can handle repetitive questions, streamline scheduling, and reduce the cognitive load on caregivers. 

• More time with patients, less time with paper: Tools like AI Scribing can free nurses from documenting lengthy assessments sitting in the car outside the client’s home after a visit. They also allow the caregiver to be more present with their client rather than nose down in documentation. Frontline staff chose this profession to help patients, not to do paperwork, and technology can help shift the balance in that direction. 

• Flexible work environments: In a competitive market, agencies must offer flexibility, ensuring caregivers can balance work with personal commitments while still meeting client needs. 

• Recognition and growth opportunities: Structured programs that celebrate caregiver achievements, coupled with opportunities for professional development, will improve morale and foster loyalty. 

• Workplace wellness initiatives: Focusing on mental health, reducing burnout, and ensuring caregivers feel supported in their roles will pay dividends in engagement and retention. 

Research consistently shows that satisfied caregivers are more likely to provide high-quality care, improving patient outcomes and client satisfaction. Agencies that invest in their workforce will gain a competitive edge in 2025 and beyond. 

Navigating the future with AlayaCare 

At AlayaCare, we believe that the future of home care lies at the intersection of innovation and empathy. By embracing agentic AI, leveraging the home care flywheel, and prioritizing employee experience, agencies can position themselves as leaders in a rapidly evolving industry. By empowering providers who dare to deliver more, we can bring true transformational change to the industry — together. 

Actionable steps for 2025:

• Adopt agentic AI: Begin integrating home-based care focused AI tools like Layla that are native to your platform to reduce administrative burdens, improve decision-making, and enhance care delivery. 

• Commit to continuous improvement: Use data analytics to identify areas for incremental enhancements, focusing on operations, client experiences, and caregiver support. 

• Invest in employee experience: Build programs and adopt technologies that make caregivers’ jobs easier, reduce burnout, and foster loyalty. 

2025 is a year to embrace transformation, but success will come from a balanced approach. Agencies must harness the power of technology while staying grounded in the human aspects of care. At AlayaCare, we are here to partner with you on this journey — empowering your workforce, optimizing operations, and delivering better outcomes for everyone.  

Let’s shape the future of home-based care together. 

Want more? Listen to Adrian’s full discussion