The North American home care industry is huge and growing rapidly. We’ve experienced the need for home health care business in Canada, even with taxpayer-funded universal health care. In the United States, the demand — and opportunity — is even bigger.
The North American population is graying at an alarming rate. Older adults made up 12.9 percent of Americans in 2009, roughly 1 of every 8. By 2030, all baby boomers will be older than age 65. This means 1 in every 5 people will be a senior.
Nursing homes and assisted living facilities are staggeringly expensive — the average cost of a nursing home is close to $50,000 per year and rising in the United States, and assisted living is even more costly. Most private insurance policies don’t cover long-term care. Neither does Medicare.
Great Opportunity for Home Care Franchise Ownership
The home care industry is rising to meet the demand. According to the Industry Market Research Report, as of 2018, the American home healthcare business industry revenue is expected to grow at an annualized rate of 3.3% to $92.8 billion.
Factors such as the aging population, prevalence of chronic diseases, medical professionals growing acceptance of home care, medical advancements, longevity of life and more have contributed to significant growth of the home care sector.
The large vacuum for home healthcare businesses is beginning to be filled by franchise companies.
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According to FranchiseDirect, over the past five years, in-home senior care franchises grew at an average rate of 9.1% annually. Research firm, IBISWorld states that there are now more than 60 franchise brands, combining for over 6,800 business locations and employment of over 350,000 and expects growth to keep accelerating.
Now is the time right time to build a business with heart with a home care agency franchise.
Trying to Meet Growing Demand For Home Care
Consider these numbers:
The Growing Senior Population in the United States
- Experts estimate that Americans spend between $211-306 billion annually on long-term care.In 2000, around 15 million Americans used skilled nursing facilities or home care services. By 2050, this number is projected to hit 27 million. By 2050, almost 21% of the population will be 65, and most of the growth is going to happen between 2010 and 2030. The increase in the number of seniors, combined with the percentage of seniors who want to remain at home as they age also results in a projected 26% increase in need for in-home care aides through 2024.
The Growing Senior Population in Canada
- Baby Boomers make up the largest generation in Canada. For the first time, Canada has more people 65+ than children under 14. Canadian seniors over 80 will peak between 2026 and 2045 as Boomers reach advanced ages — they’ll be 10% of the total population!
Even with substantial growth in the last decade, home healthcare businesses are still trying to catch up to an ever-growing demand that will last for at least the next generation, if not beyond. It’s one of the main reasons why we believe Nurse Next Door is uniquely positioned for long-term, year-over-year growth that’s unparalleled in the franchise industry.
Why Nurse Next Door Home Care Services Is Growing in North America
Nurse Next Door’s core values and philosophy of caring set it apart from any home care company in North America — that’s one big advantage. We also resonate with different markets. We’ve done exceptionally well in Canada and the United States, and people are taking notice. It’s why we have over 200 franchises across North America.
We’ve done spectacularly well in Canada even with publicly funded health care; given a choice between paying for personalized care versus impersonal, by-the-numbers treatment (which they’re already paying for with their taxes), Canadians are still choosing Nurse Next Door in rising numbers.
Since expanding into the United States, we’ve become one of the fastest growing home care systems and continue to increase our brand awareness across North America. In the United States, since customers pay one way or another, it’s a matter of which they’d prefer: an exorbitantly priced, overextended, possibly sub-standard nursing home where costs will undoubtedly rise; or affordable, attentive care tailored to the individual and administered in the home, where the client wants to be.
Trends in Home Health Care Agencies
Nurse Next Door is an industry thought leader. We’re thinking constantly about the future of home care and the forces that will shape our company and society over the next decade and beyond. We already offer services that meet the trends we see dominating the field for years to come, including:
❤ Caregiver matching.
This is something we do with great results. In line with our core value of admiring people, we recognize that each individual is unique, and that applies to both clients and caregivers. We carefully assess not only clients’ medical needs but their likes, pet peeves, hobbies, tastes, and try to match a caregiver’s skills to the client’s preferences. Nurse Next Door takes the time to hire caregivers with the right mix of skills.
❤ Pre-medical emergency care earlier in life.
Just because a client doesn’t have an immediate medical need, doesn’t mean he or she doesn’t require care that addresses emotional needs.
Did you know that an estimated 60 percent of seniors suffer from depression? What happens when you get depressed and lonely, and your friends and family are gone? You stay in your house. You stop preparing healthy meals. You lose strength in your legs and hips, and you fall. Household falls send more seniors to the hospital than any other cause, and Nurse Next Door helps clients adopt more active lifestyles that can keep people healthier for longer.
❤ The shift in popular perception of seniors.
It’s Betty White’s world; we just live in it. Even over 90, the actress and comedienne’s popularity blossomed. In 2010, people started a Facebook campaign to have her host “Saturday Night Live” — and it worked! On May 8, 2010, White, at 88, became the oldest person to host the show in its 35-year history, and the episode drew the highest ratings for “SNL” in more than a year.
Point is, nowadays, seniors are — dare we say it — cool, an attitude we’ve always held at Nurse Next Door. And with married couples waiting until later and later in life to have children (if they have children at all) and an explosion in the number of seniors living ever longer, care for parents seems poised to take the place of raising children for successful adults in their 30s and 40s. “Women my age used to share kids’ stories,” says Judy Brooks, daughter of a Nurse Next Door client, “now we’re talking about parent care.” Home healthcare business has resisted big changes over generations.
But it’s in the midst of some major disruption, and the companies that will thrive in the new world are those that embrace change. At Nurse Next Door, we pride ourselves on not just staying ahead of trends, but setting them.