Home Care: A Franchise Opportunity with a Dynamic Market
by Ed Teixeira
Based upon The Entrepreneur 500, from 2007 to 2009, fourteen Senior Care
franchisors grew from 3,059 to over 3,721 franchisees. A rate of increase of
22%! The growth of this franchise segment portends the increasing need for
services that seniors will require. In addition, the franchise format for
senior care is focused upon private pay services rather than government
reimbursed programs, such as Medicare and Medicaid. This approach avoids the
burdensome requirements of government regulated and funded programs. Private
pay home care programs for seniors are easy to administer with simple
payment terms. Whether franchisors will venture into insurance and
government reimbursed programs in the future remains to be seen.
Unlike consumer driven franchise concepts, home care services are
generally immune to economic fluctuations. This provides a level of security
that most franchises canít offer.
A compelling case for participating in the home care market based upon
data from the U.S. Census Bureau:
- The U.S. population age 65 and older is expected to double in size
within the next 25 years.
- An estimated 36.8 million people - 12.4% of the population - are 65
- About 80% of seniors have at least one chronic health condition and
50% have at least two.
- The 85+ population is projected to double from 4.7 million in 2003
to 9.6 million in 2030
According to the Bureau of Labor Statistics the healthcare industry and
home care will lead in job growth:
- As one of the largest industries in 2008, healthcare provided 14.3
million jobs for wages and salary workers.
- Ten of the 20 fastest growing occupations are healthcare related.
- Healthcare will generate 3.2 million new wage and salary jobs
between 2008 and 2018, more than any other industry, largely in response
to rapid growth in the elderly population.
- Most workers have jobs that require less than 4 years of college
- About 59 percent of jobs in this segment are in service occupations,
mostly home health aides and personal and home care aides.
According to the National Association of Homecare approximately 25% of
caregivers are family members. Many of these informal caregivers experience
stress and a loss of work hours as a result of taking care of a family
member. There will be a continued need for people to care for elderly family
Franchise companies can provide significant opportunities for individuals
seeking a franchise opportunity. The demand for home care services will
continue to grow and there will be an available labor pool. Prospective
franchisees interested in a home care franchise should perform appropriate
due diligence. However, one fact is evident: The market for home care
services will continue to grow.
© 2010 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC.
He can be reached at