Home Health Care Industry Saturated?
I’ve been in franchising for almost 30 years. and a question that I’ve been asked most often is the Home Health Care industry saturated? As you move closer and closer to retirement you think about things first in terms of cost than the quality of life. In the last 20 years, Senior Care franchising has begun to redefine the quality of life for those of us over 65 years of age. They allow seniors to live a dignified and life fulfilling retirement in their own homes.
There are currently about 6500 Senior Care franchises and about 6,000 independent home health care agencies. With a population of almost 300 million people and currently then demographics tell us that 12 – 15% are over the age of 65 it’s easy to do the math. 300 million people divided by 12000 Home Health agencies net each agency about 3000 potential clients. If you subtract 30% as not needing the service (according to Health and Human Services) that still leaves 2000 potential clients. An average agency grossing $1000000 in sales would have between 30 to 50 clients. leaving 1900 – 1950 clients. without any coverage for service. And if you figure That the over 65 demographic segment gets larger every day. You can quickly see that this business is nowhere near saturated.
Senior Care franchises fit the franchise model very well. It is a system oriented business model delivering a very personal service. the senior care franchise platform allows its franchise owners the ability to established strong ties with their clients and strong business relationships with their referral Network.
There are 15000 new seniors in the United States every day! And those numbers will increase to 20000 a day in just a few years. The seniors of today have more money, more energy and demand the medical care and attention that they deserve. It is estimated that the home health care industry generated over $300 billion in 2016.There is also a major shift towards aging-in-place. it only makes sense that people would rather live in their own home than a modified nursing home/apartment, or worse! Also, Senior Care franchising is getting a boost from technological advances almost daily. Assistance and safety monitoring equipment have taken a dramatic leap helped by sensory Networks, bio-sensing, robotics, cloud computing and other Telecommunications and virtual medicine innovations. Still another very important factor is the tremendous return on investment that these franchises have. Senior Care franchising represents. With the best ROI in the franchise industry. and with startup costs averaging about $100,000 and an expected return of $200,000 to $250,000 shames all other franchise categories. The senior care franchise business model with their group buying efficiencies and their best practices mentality is making these businesses much more profitable, safer and equity builder then the non-franchise home health care agencies. In fact, the growth rate of franchises versus non-franchises is almost 3 two 1.
There are two basic business models, one offering non-medical at home care which is simply helping their clients with their daily living activities such as bathing cooking cleaning running errands things like that. The other skilled Medical Care where a private duty nurse comes in and helps the client with their medical needs. The problem with the medical care is that the market place for employees is very competitive and f fewer people are in entering these careers.
Some investors are concerned that the lack of regulation in the industry might impact growth. Currently the requirements for caregivers is very minimal. some states require CNA certification (certified nursing assistants) but most have no requirements at all.
Globally, the Senior Care franchise industry is most developed in the US followed by European Union. The increasing of over 65 citizens in the world how a long with Technological improvements, and government reimbursement in many Asian countries This industry can expect will experience significant growth vault in the US and worldwide for the next several decades.
Learn who the top franchises are. Visit the Top 10 Senior Care Franchises website to learn more about the home healthcare business.