As more and more elderly people in the US seek aging-in-place solutions, home care franchise owners are starting to catch up.
With the fastest growing aging population and one of the highest life expectancies in the US, there’s a new destination for the home health care business.
Time to go west, to California.
How changing demographics may impact home care businesses in California
By 2030, one out of every five people in the US will be above the age of retirement. In California in particular, seniors are the fastest growing population in the region.
From now until 2026, the number of people living in California aged 65 and over is expected to increase by 2.1 million, far outstripping their younger cohort groups like 25–65 year olds which is projected to only increase by half a million, and under 25 year olds which are set to increase by 2,500 in the same time.
So what does this seismic demographic shift mean for the Golden State?
More demand for healthcare services: Seniors are the group most likely to receive health care on a regular basis. A larger senior population means greater demand for healthcare services in the state.
Increased pressure on healthcare systems: This demographic shift will put even more pressure on the state’s already fragile healthcare system and supports—including nursing facilities.
Higher healthcare costs: With a rapidly-aging population, US health expenditures are set to reach $4 billion by 2020 and $5 billion by 2025.
When asked what he makes of California’s changing demographics, president of the SCAN Foundation, Bruce Chernof has said, “We are exquisitely unprepared for that age demographic pushing through.”
These factors and more have led to an uptick in demand for home care services and franchises.
How COVID-19 has impacted home care businesses in California
No other age demographic was hit harder in the pandemic than the over 65s. As Covid-19 spread through every state in the US, older people faced a higher risk of developing severe illness, especially those with underlying health conditions.
Not only that, The New York Times reported that over a third of all deaths related to COVID-19 happened in long-term care facilities. And while the introduction of COVID-19 vaccines have been a welcome shield for our elders, varying vaccination rates of nursing home staff and seniors indicate that we’re not out of the woods yet.
It’s not surprising then that many seniors living in California would prefer instead to receive care in the comfort of their own homes.
Post-pandemic home care franchise adoption
Even in the middle of a global pandemic, The US Bureau of Labor Statistics noted significant growth in the home care industry, estimating that more than 1 million home care jobs were created in 2020.
Home care franchises that provide necessary medical and non-medical care in the safety of their own homes have been shown to reduce hospitalization and long-term institutionalization rates among seniors.
Highlighting this fact has brought new attention to the business of home care—helping potential home care franchise owners see the importance of seniors living with dignity and independence as they age. It’s also helped the children of seniors make the right decisions about their loved ones’ care.
What Nurse Next Door has been doing to support home care franchise owners in California:
- Established a Clinical Task Force with representation across North America
- Stayed open 24/7 at the height of the pandemic to provide the information home care franchise owners need to work safely and stay compliant with local regulations
- Continue to support all home care franchise owners as they navigate the pandemic
How rising healthcare costs may impact home care businesses in California
For loved ones faced with taking care of an elderly relative, affordability is a big consideration. Particularly when paying for around-the-clock care in a nursing home or long-term care facility can set you back over $10,000 a month on average.
More loved ones are taking on the home care burden
On the other side of the coin, relatives who decide to take on the responsibilities of care by themselves may save money, but they report higher levels of stress and isolation—with some needing to leave the workforce to care for their loved one full time.
According to the American Association of Retired Persons (AARP), “4.5 million family caregivers in California provided $57 billion worth of unpaid care — roughly the equivalent of the gross domestic product of Costa Rica.”
Choosing a home health care business
To many children of seniors, the home health care business is an appealing compromise that offers a high-standard of care at a reasonable price.
In California, the average cost of home care is $4,600 per month or $55,000 each year—about half the price of full time nursing home alternatives which can amount to $125,000 per year, and can quickly rack up millions of dollars if a senior lives a long life (Californians have an average life expectancy of 81.7 years).
Home care businesses also provide value in ways that their nursing home counterparts simply cannot:
Non-medical support: Home care provides elders with non-medical care. A home caregiver can help a senior get groceries, support chores around their home, and assist with their personal hygiene and health-care needs.
Security and comfort: Home care gives them continued access to the things they love: their home, their treasured possessions, their social circle, as well as proximity to their favourite out-of-home activities.
Flexibility and adaptability: Home care services are usually more flexible. If your loved one is in good shape and only needs light care, you can avoid some heavier care costs.
How home care franchise Nurse Next Door can help
The US home care franchise market has big potential. In 2020, it was valued at just under 300 billion and economists predict that it will continue to grow at a rate of 7.88% each year.
Nurse Next Door has a strong presence in California—and we’re just getting started. Our recent launch of franchises in Fresno, Manteca, and San Diego proves how well-equipped we are to meet demand in the home health care business industry.
Will you join us today and become a part of the happier aging journey?
Access Your Welcome Package which includes
- Discovery Video – 15 min overview of this opportunity
- Franchisee Testimonials
- The Nurse Next Door opportunity
- Access to our calendar to book a 1×1 call.