The Home Care Business: A Growing Industry

One of the best parts of the home care business is the wide selection of services it provides to those in its care, especially to elderly patients who require additional care and help with their day to day activities, such as bathing, grocery shopping and preparing meals in the comfort of their own home. As things stand today, the home health care business is on the road towards significant growth in the coming years. The US Bureau of Labor Statistics has estimated that, even with the pandemic raging across the world, over 1 million home care jobs have been created during 2020.

There are two main reasons for the shift from traditional care to home care. Affordability plays a big part, as does the shift in the public perception of home care. Once considered an afterthought, home care is increasingly top of mind when seniors and their families are looking at care options.  The coronavirus pandemic has made home care an obvious choice when it comes to keeping seniors safe at home.

Placing your loved one in a nursing home can cost upwards of $60,000 per year. Medicare doesn’t cover any of that cost, and only a few third-party insurance providers provide coverage for long-term care facilities. This can negatively affect family finances, especially when they take into consideration that a senior’s savings and income don’t stretch that far. With home care costing less than half this amount, aging in place makes much more financial sense for seniors and their families.

State of Home Care after Covid-19

It is sad to say that it has been estimated that some 40 percent of deaths due to Covid-19 in the US happened in nursing homes or other types of long term health care facilities. Added to that, the inability of residents to be with their families after the doors to these places were closed as a result of the emergency, placed a heavy burden on the future of this type of care. This has opened a doorway for home care to thrive.

Given what we have learned about the need for families to be active participants in the care of their family members during the pandemic, it is almost certain that they will continue to choose home care over residential facilities in the future. 

As the coronavirus pandemic quickly approaches its first anniversary, we are already starting to see these changes take place. The home health care business continues to give seniors the choice to stay safe at home while strictly following CDC guidelines. With the addition of telehealth options, patients and their families are already seeing an increase in the quality of healthcare their seniors are receiving, which bodes for a brighter future for the industry as a whole.

To summarize, as families start to move away from the nursing home and assisted living facility models of senior care, the home health care business has moved to the forefront of the possible options for the elderly, especially during and after the pandemic.,As Americans age, home care will continue to become a viable business investment with excellent returns in the short to mid-terms. We have a separate blog that speaks to the state of home care business post Covid-19. Take a peek!

Home care post covid-19

Home Care: No Longer an Afterthought

Up until now, few people had prepared for what would happen during their senior years, but one game-changing fact is coming to light that has changed this lack of preparedness: the population of the United States is aging at a faster rate than it is being replaced. Some estimates suggest that over the next 20 years the number of elderly people will increase exponentially, and, because fewer children are being born each year, there will be one senior for every 2.5 people of working age. This means that live in facilities and nursing homes will run out of space very quickly.

Fortunately, the home care industry is prepared to pick up the slack. Given the very nature of home care, and seniors playing a larger part in choosing their own healthcare options, the industry is projected to continue to grow well into the future. If the lower cost is taken into account, home care becomes easier to plan for, especially because both Medicare and third party providers do cover some, if not all, of the costs.

With the lessons learned over the last year, maintaining a senior’s highest level of care is also more practical with a one on one approach. Each home health care provider will only have to care for one patient at a time, increasing the quality of care at the same time the patient’s quality of life is improved. It also allows for the patient to be an active participant in his or her care while maintaining their independence. With the future looming on the horizon, home care is no longer an issue to be decided on the fly, and because of its essential nature, it has become a part of a person’s life plan.

Hot locations to start a home care business in the united states

The Facts

At a national level, the cost of home care runs at an average of $22,000 per year, but at a state level these figures can vary significantly. Let’s take a look:

California

  • Demographics: Once considered to be one of the youngest states, California’s senior population is projected to grow to an estimated 8.4 million people over the next decade, faster than the national rate, a number which will have doubled by 2040.
  • Cost of Care: The average cost of home care in California is approximately $4,600 per month ($55,000 per year). In comparison, the average cost for a nursing home in the state runs about $125,000 per year, which can end up costing families millions of dollars during the patient’s lifetime.
  • Licensing: In California, the Home Care Services Consumer Protection Act requires a home care franchise to be licensed in order to protect patients who allow home care aides into their homes.

Watch Our Discovery Video For More Information On

  • How to start your own home care franchise
  • Nurse Next Door’s unique 24/7 call center
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Oklahoma

  • Demographics: There are approximately 800,000 seniors living in the state of Oklahoma, a number that represents 20% of the state’s total population, with this figure being projected to grow 37% over the next decade. Of these, about 200,000 live alone, with the number increasing as more and more people reach the age threshold and continue to work.
  • Cost of Care: Home care for seniors in Oklahoma costs an average of $4,200 per month, which places it lower than the national average and totals $50,400 per year. On the other hand, the average cost for a nursing home runs an average of $60,000 per year.
  • Licensing: The Oklahoma State Department of Health requires licensing for all senior communities and home care franchises throughout the state.

Texas

  • Demographics: There are more than 3.8 million people in Texas over the age of 60, representing approximately 15% of the state’s population. As per the most recent projections, this number is expected to grow to 12 million over the next 3 decades, which makes this demographic the fastest growing in the state.
  • Cost of Care: The cost of home care in Texas can vary according to the exact location, but runs an average of $48,000 per year, whereas the average cost for a semi-private room in a nursing home is around $57,000.
  • Licensing: The Department of Health and Human Services of the state of Texas is in charge of licensing and certifying all senior home care franchises, as well as all live-in facilities throughout the state.

Missouri

  • Demographics: There are almost a million and a half seniors currently living in Missouri, a number that is projected to grow by and additional half a million over the course of the next five years.
  • Cost of Care: The state average for home care costs in Missouri is $4,200 per month, or $50,400 per year, which is about $100 less per month than the national average. Contrary to that, a semi-private room in a nursing home will cost $60,000, an amount that is expected to increase in the near future.
  • Licensing: The Missouri Department of Health & Senior Services is the office in charge of licensing and certifying all home care franchises in the state.

Kansas

  • Demographics: It has been estimated that there are currently half a million seniors living in the state of Kansas, with this number expected to grow by 100,000 over the next decade.
  • Cost of Care: In the state of Kansas, a family can expect to pay an average of $48,000 every year for senior home care, whereas the cost of a nursing home would set them back an average of $67,000 per year for a semi-private room.
  • Licensing: The responsibility for licensing, certifying and inspecting senior care facilities and franchises in the state of Kansas is the Kansas Department of Health & Environment Bureau of Health Facility Regulation.

Virginia

  • Demographics: The state of Virginia has a total population of 7.7 million residents, of which approximately 12 percent are seniors over the age of 65. This translates to a little less than a million senior citizens living in the state, with this number expected to grow significantly over the next decade.
  • Cost of Care: Home care costs in Virginia are significantly lower than the national average, with an annual total of approximately $48,000, or $2,000 per month. In opposition, the cost of a semi-private room at a nursing home averages $82,500 per year.
  • Licensing: The Virginia Department of Health – Office of Licensure and Certification is the entity in charge of granting licenses and certifications of home care organizations, as well as conducting periodic inspections to ensure compliance with state laws.

Watch Our Discovery Video For More Information On

  • How to start your own home care franchise
  • Nurse Next Door’s unique 24/7 call center
  • What type of training & support we provide for you
Watch Now