9 Things You Need to Know from the Article “5 Successful Senior Care Franchises” Written by Laurie Kulikowski for TheStreet.com Posted on July 29, 2011
Senior home care is one of the fastest growing franchise categories today, and the business model makes it possible to generate very high revenues with just a single franchise. This article from TheStreet.com is a great starting point for anyone interested in entering this industry. Laurie Kulikowski presents all the most important information she compiled from the different franchise websites in this comprehensive article.
1. An estimated 36.8 million people, or 12.4% of the U.S. population, are 65 and older — a figure expected to double by 2026. Those older than 85 are projected to roughly double from 4.7 million in 2003 to 9.6 million in 2030.
2. It used to be that for elderly people who did not have family to care for them, the only option was living in a nursing home once they were unable to live independently. Now, a whole new franchise category has emerged to provide in-home senior care services (medical and non-medical) to seniors who are not necessarily ill, but need help with basic living functions such as cooking, cleaning, taking medication, and personal hygiene.
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3. In-home care is also seen as a way to reduce the rising costs associated with health care. According to the National Private Duty Association, a trade organization for private medical and nonmedical home care companies, the average annual cost of one nursing home resident is $69,715 while the average annual cost of one assisted-living facility resident is $36,372. In contrast, 20 hours a week of home care services cost about $18,000.
4. Today, 90% of elder services are out-of-pocket expenses to the client or their family. As consumers get more comfortable with long-term care insurance policies and insurance companies get more comfortable with approving in-home care expenses, that will likely change.
5. Home Instead Senior Care – the largest senior care franchise in the world, with more than 900 franchises and more than 65,000 caregivers in its network. The caregivers provide nonmedical in-home care services — personal care, medication reminders, meal preparation, light housekeeping, errands, incidental transportation, and shopping — to allow seniors to live in their own homes as long as possible.
6. Comfort Keepers – founded by a registered nurse, Comfort Keepers has approximately 617 franchises in the U.S. and internationally. The company provides in-home companionship and care services, personal care services (like bathing and grooming), and specialized care services (for dementia, end-of-life, and veteran care). In 2009, Comfort Keepers was acquired by Sodexo, a Paris-based provider of food and facilities management.
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7. Right at Home – The company’ franchisees hire professional caregivers to deliver three levels of client assistance: companionship, including cooking, cleaning, and running errands; personal care; and light skilled nursing, which is typically help administering medications. Nearly 30% of its franchisees exceeded $1 million in sales last year, and the highest-earning franchisee reached $9.4 million in sales (he owns two territories).
8. BrightStar Care – The company provides what it calls a “full continuum of home care” that includes adult and elder care services, child care, and medical staffing services for individuals, families, and health care facilities. The company provides every service available at nursing facilities in the comfort of an elderly person’s own home. They can assist with everything from companionship to toileting and hygiene assistance to in-home blood draws.
9. CareMinders Home Care – The CareMinders business model is a bit different than some of its competitors because it offers a range of professional and companionship services in the home and, when permitted, in nursing homes, hospitals, assisted care facilities, and other medical settings.