Top Challenges Homecare Agencies Face in 2025 and How Digital Tools Are Solving Them

What’s in This Blog

In this post, you’ll learn:

• The five biggest challenges homecare agencies are facing this year

• Six real digital tools that agencies are actually using to solve those challenges

• Key stats from industry reports like Activated Insights

• Straightforward answers to frequently asked questions about homecare tech and trends

Introduction

Homecare in 2025 is a whirlwind — high demand, fewer and more stretched staff, and rising pressure to deliver a smooth, efficient service. Costs are going up, compliance rules keep shifting, and families now expect healthcare updates the way they get pizza tracking.

This is where Digital Transformation steps in, and frankly, it can’t come soon enough. The right digital tools help agencies stay grounded, support their teams, and improve client satisfaction without burning everyone out. In this blog, we’ll walk through the real challenges homecare agencies are dealing with right now — especially in the U.S. — and how practical tech solutions are already making a difference.

Top Challenges Homecare Agencies Are Facing in 2025

1. Caregiver Shortages and High Turnover

The caregiver shortage is hitting everyone. According to Activated Insights’ 2024 Benchmarking Report, the average turnover rate is now 79.2% — that’s nearly 8 out of 10 caregivers leaving each year.

It’s like trying to build a team with a revolving door. Constant hiring and retraining sap time, money, and energy that could be spent improving care.

2. Rising Operational Costs

From wages to fuel to protective gloves, everything’s more expensive. For many agencies, managing the budget feels like walking a tightrope in a hurricane. Trying to balance quality care with ballooning costs is becoming a serious stretch.

3. Keeping Up with Compliance

Let’s be honest — paperwork is eating up time that should be spent with people. EVV, HIPAA, state regulations… it’s a long checklist that keeps growing. One small error could lead to audits, fines, or worse.

4. Evolving Patient and Family Expectations

People can track food deliveries, rideshares, and packages in real time — and they expect homecare to match that experience. Agencies that don’t communicate clearly or provide timely updates risk losing clients to those who do.

As one agency owner recently put it: “If it’s not good enough for my parents, it’s not good enough for anyone else.” That’s the bar now.

5. Lack of Accessible Staff Training

Training sessions are often squeezed in when possible — which usually means rarely or never. In-person sessions are tough to coordinate, and if caregivers don’t feel confident or supported, they’re more likely to make mistakes or leave. It’s a tough loop to break.

6 Digital Tools That Are Actually Helping To Solve These Challenges

1. Workforce Management Software

Platforms like AlayaCare and ClearCare simplify scheduling. They match caregivers to clients based on availability, skillset, and even past feedback. Plus, office teams get a real-time overview of who’s doing what — fewer phone calls, less chaos.

2. Telehealth Platforms

Video check-ins have gone mainstream. Tools like Zoom for Healthcare let providers catch issues early and involve physicians remotely. It saves time and reduces unnecessary travel — a win for caregivers and clients alike.

3. Electronic Visit Verification (EVV)

EVV is the digital check-in that proves care was delivered. Required by Medicaid in many states, it logs visits via GPS or landlines. It helps agencies stay compliant while giving families peace of mind.

4. AI-Powered Predictive Analytics

Platforms like CarePredict and Dina use data to spot changes in behavior, mobility, or medication use. These early warnings can prevent ER visits and help teams act before small issues become serious.

5. Caregiver Mobile Apps

Apps like HHAeXchange and MatrixCare are basically mobile command centers. Caregivers can check schedules, update care notes, and get client info on the go — no more scribbled post-its or long back-and-forth calls.

6. Online Training & Certification Platforms

Services like CareAcademy and Relias let staff complete training online, at their own pace. No need to shuffle everyone into the same room at the same time. The result? A better-trained team without all the scheduling headaches.

In Conclusion

Running a homecare agency in 2025 feels a bit like cooking for a crowd with half your kitchen staff and a fridge that’s always one ingredient short. It’s a lot.

But with the right digital tools, things start to feel more manageable. Whether it’s improving scheduling, staying on top of compliance, or making training more accessible, technology is giving agencies the boost they need.

And for organizations looking to implement these tools more efficiently, working with a Salesforce consulting services provider can help streamline the process and make everything run smoother behind the scenes.

Relevant FAQs

Q: How do digital tools help with caregiver retention?
A: By reducing chaos. Better scheduling, mobile tools, and easy access to training help caregivers feel more supported. That means fewer headaches and more staying power.

Q: What’s the biggest challenge for homecare agencies in 2025?
A: Caregiver turnover, hands down. A 79.2% rate means constant churn, which affects both staff morale and client continuity. Agencies need to focus on staff experience as much as client experience.

Q: Why is EVV important, and how does it work?
A: EVV (Electronic Visit Verification) tracks when a caregiver arrives, how long they stayed, and what services were provided. It’s usually verified via GPS or a landline and is now required by Medicaid in many areas.

Q: Can smaller agencies afford these digital tools?
A: Yes — many platforms offer pricing based on usage. Even simple tools like online calendars or free training resources can help without a major investment.

Q: How do patients benefit when agencies use digital tools?
A: Clients receive more reliable care, faster responses to issues, and better communication. Family members also get more visibility, which helps build trust and satisfaction.