The senior living culture has been rapidly changing over the last two decades. What was once consistently referred to as the “long-term care industry” with its foundation solidly rooted in skilled care nursing facilities, the senior living culture now represents a much broader range of housing and senior service options.
This changing environment is the result of increasing demand coupled with the need for more cost-effective solutions. For decades, a nursing facility was the prevalent option for seniors with long-term or special health care needs. For example, a seasoned senior requiring daily insulin injections would most likely need to be admitted to a nursing facility if a competent caregiver was not readily available. Likewise, a senior with dementia could not be left alone. They too would have gone to a nursing home. Being the only option for long-term care, the nursing home setting was once a “catch all” for a wide variety of patient needs which, obviously, increased cost to patients and tax payers.
Over time, home care services have evolved and integrated with changes in the medical industry that continues to experience increasing outpatient treatments and services. Many seasoned seniors are now more likely to avoid long-term care facilities altogether or remain short-term to treat acute illnesses or rehabilitation. Others are able to travel to senior centers or day-hab facilities for daily activities or treatments and then return home to maintain independence.
According to Colleen Teixeira Moffat of the US Bureau of Labor and Statistics who studies the occupation of personal and home care aides, “Increasing healthcare costs partly explain this growing demand for a shift in need to more in-home care. It's a lot more cost-effective to leave a hospital sooner when all a senior might need is assistance with daily activities," she said. "A visiting nurse, home health aide, and personal and home care aide all will be cheaper than a stay in a residential care facility," she says.
Especially in looking long-term with the growing elderly population, there’s nothing short of opportunity in starting and owning a home care agency. Consider, “INC Magazine” ranked in-home care as “one of the fastest growing” and “best businesses to start.” Reasons for such accolades are simple – demand is exponentially growing.
Some of the primary reasons why home care can be an essential service for seniors to remain at home are as follows:
With such progressive and natural concerns that eventually afflict all seniors, the entrepreneurial opportunity in starting a home care agency is obvious. Even if you prefer to remain small with a limited number of caregivers, you can still become quite profitable and can leverage your home care agency to compliment other businesses.
In fact, in addition to providing preventative care and saving clients and families a lot of money by staying at home versus receiving facility care, consider some of the many benefits your quality service will provide to clients and family:
When you consider all the concerns versus benefits, the opportunities are obvious. An additional interesting fact that further bring perspective to the industry is 45 percent of family members who serve as caregivers to loved ones are seniors themselves. That’s significant because it supports the reason why almost 55 percent of families responsible for caring for a loved one report using at least one type of outside service for respite care, transportation, home delivered meals, housekeeping, or other.
Another aspect that makes Joel’s resource so unique is that it’s the product of working with countless home care agencies over many, many years. Joel has been able to evaluate many successful home care agencies across the country to learn what works, understand challenges, and discover specific training and operational management strategies. Conversely, Joel’s exposure to so many agencies has also afforded him the opportunity to observe common mistakes and develop effective solutions to solving problems.
Knowing the type of business model we want to start, companion care, we can more accurately identify and profile prospective clients - seasoned seniors between the age of 65 and 90, who are generally ambulatory or semi-ambulatory, do not require direct medical assistance to function and remain living at home, can articulate their own desires and intentions, understand their age-defining limitations, and are receptive to outside assistance.
These numbers are quite impressive, especially when you consider they can further increase when integrated with a non-emergency medical transportation service. Let’s discuss how we can compound opportunity by identifying exactly what clients and family members are seeking.
Clients and family have two primary concerns; quality of care and cost – bottom line. Which of the two is most important? Honestly, it depends on who’s paying the bill!
If the client-patient is responsible for paying their own bills, they’re more likely to be concerned with cost and choose the cheapest option. If family members are responsible for paying for care, especially for a parent, their first priority is quality of care. Why? Because their decision is based in emotion and relationship.
The primary objective for families with loved one’s requiring in-home care is to find good, reliable, and trustworthy caregivers. Retaining trustworthy caregivers is essential because caregivers are literally entering someone’s home and working in their environment. A large peace of mind for family is having confidence that caregivers entering the home are trustworthy and that family, home, and possessions are safe – free of damage or theft. Family members are always willing to pay more for agencies with outstanding reputations for providing reliable and trustworthy caregivers.
Their secondary concern is cost. What makes “How to Build a Million Dollar Home Care Agency” so unique as compared to other home care industry related resources is that it’s prepared from a “NEMT perspective.” More specifically, Joel is going to share how to leverage both a non-emergency medical transportation service and your home care agency to increase your overall profitability, efficiency and wealth-generating opportunities.
Did you know the average gross margin for a private non-medical companion care agency is approximately 32 percent? That’s a very good margin for any business in any industry. Now, consider your potential margins when operating a private non-medical home care agency in conjunction with a private non-emergency medical transportation service operating from the same office with shared personnel, marketing, and overhead expenses and margins can quickly swell to 40 and 45 percent - far exceed industry standards and making both businesses more attractive by prospective buyers.
Because home care and NEMT cater to the same clientele, synergistic possibilities are exceptional. Therefore, the goal in this resource is to accomplish the following key objectives:
Needless to say, by developing a home care agency that exceeds industry standards of profitability will garner a much larger and more aggressive selling price.
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