GROWING AT DOUBLE THE RATE OF THE ECONOMY

According to the Wall Street Journal, home care franchise companies will grow at double the rate of the economy in 2011 and 2012, and this is just the beginning – they also say that 70% of people over 65 are expected to need some long-term care services at some point in their lives. The article states that “for seniors, homecare means more than just health and safety; it also means living well, with dignity in the most comfortable setting in the world - their home.”

Here are some factoids about homecare that will give you the confidence to devote your time and energies to this business. 

• Over 8,000 people are turning 65 every day in 2011 in North America and their life expectancy is an additional 19 years.
• There are currently 55 million seniors and this will grow to 80 million in 2025.
• In the 2005 White House Conference on Aging, 9 of the top  20 recommendations concerned homecare and that the 2002 Commission on the Future of Healthcare in Canada concluded that “homecare is the next essential service.”
• In 15 years, the number of homecare businesses increased from 7,500 to 280,647 in 2010.
• The average revenue for each business is $256,000 in 2010 and projected to grow at 5.5% a year, outpacing the projected growth of the economy.
• The growth in chronic diseases like Alzheimer’s and diabetes means an increased demand for caregivers.
• Physicians are now seeing homecare agencies as valuable partners in the care of their patients.
• Studies show that the vast majority of seniors want to  remain in their homes as long as possible. One 2008 study showed that 16% of those over 85 live in nursing homes compared to 21% in 1985.
• The historic backbone of the homecare system has been family caregivers – usually female children. Demographic trends like fewer children per family, higher divorce rates,more childless couples and children residing further away from parents is reducing this group.
• It is believed that Baby Boomers, who are now starting to transition into ‘Senior’ status, will be culturally less able to accept the restrictions of old age and will demanding higher  levels of care than their families will be able to provide.
• Technological innovation, such as new monitoring and  transmitting equipment, new home infusion equipment, new drugs and delivery methods, means that more healthcare procedures can occur in the home.

According to the International Franchise Association; "As of 2011, the U.S. healthcare industry includes more than 780,000 hospitals, doctor offices, emergency care offices, nursing homes, and social services providers, generating annual revenue of approximately $2.5 trillion, and employing a workforce of more than 14 million. Industry revenues will represent 20% of the GDP by 2015. At an estimated $19 trillion GDP in 2015, this means $3.8 trillion in healthcare industry revenues, an increase of 52% over 2010. Just about 18% of the estimated 22,000 home healthcare establishments are franchised, accounting for less than 5% of revenues in the home healthcare industry."