Why Home Care Is Important
Welcome to Franchising with Purpose, brought to you by Griswold Home Care.
I’m your host, Lorraine Sheak, and I’m excited to introduce you to our panel: Mike Powers, director of franchise development.
And Mike Magid, chief operating officer.
Very nice to be here with you today.
Today we’re here to talk to you about the home health/home care industry, current trends, and how franchising fits into the industry as a business opportunity.
I’m going to pose some questions to the Mikes, and they will share their knowledge with our loyal listeners. First, why would someone consider the home care industry as a business opportunity?
Mike, why don’t you take that one first?
Sure thank you I appreciate that.
Lorraine, that’s a good question. When you think about the demand that’s out there with our aging population, there’s opportunities at multiple levels for folks that are 65 years of age or older. We see that the baby boomer generation there’s 10,000 people a day turning 65 years of age or older. Then the other segments this drives is 75 plus and 85 plus. All those folks that need care that’s out there. We’ll talk and I’m certain that Michael will share with you the adult care the levels of care that are out there today, but it’s really important that we recognize that we see that people respond better to treatment being in their own home.
The statistics prove that out, not to talk about statistics, but 90% of adults would prefer to get care in their home, and it’s something it’s a trend that not only the caregivers see the quality and the response of the the care recipients but those health care organizations—I think you would agree Mike—we’re seeing it as well, and they recognize that in the home health care that they receive is a critical component to the collective continuum of care that someone would receive usually.
Yeah I mean I think you hit the nail on the head, Mike. People want to age in the home.
I mean if you look at industries this was a very sleepy industry up until about the year 2000 when a lot of companies started positioning themselves back then for the baby boomer population—it was going to start turning 65 in January of 2011—so it was very sleepy, and now it’s not. But if you were to survey clients of home care or home health services where they want those services in the home and so why not consider an industry like this, but there’s some other things that make this a great industry. I mean when you look at the baby boomer population, it was the 1946 to 1964 babies. They started turning 65 in January 2011 as I said, and they will continue to turn 65 up until the year of 2030.
So if you’re looking at an industry a recession resistant industry—not recession proof—clearly based on the way demand will continue to outpace supply it’s an industry that you have to consider, especially if your heart is very purpose or mission driven. It is a great industry, but one of the other things about the demographics is that the 85-year-old and older category statistically as a year over year percentage is the fastest growing category in the demographics of each of the age groups, so it’s not just that people are turning 65. They’re turning 65 healthy. It’s that the 80 and 85 and 90-year-olds that are out there are aging in place and living longer to allow for us to be able to have this ability to grow a business and sustain a business over a long period of time. So it’s really exciting to be in this industry and again, if you’re very purpose or mission driven, you get all that with this type of industry.
Yeah, and Lorraine I think there’s not just in those categories but there’s other levels of care for those who may have had surgery. And they’re returning home and they quite can’t take care of their daily activities on their own. Yet, while having that type of care is important and as we said and I think the hospitals and healthcare providers are recognizing now that someone for example who’s had a recent surgery that are getting that type of care, they respond better because they’re in the comfort of their own home. And they’re getting the quality care that they need and they’ve returned to whether their daily activities or to work is shortened by the fact that they’re embracing the rehabilitation at home.
Yeah and I think another really interesting trend that makes this an industry worth considering is the fact that for the very first time insurance companies are going to be funding benefits for Medicare Advantage recipients that have I think it’s Part D Medicare plans, so those that have bought those policies in 2019 and beyond are going to be able to use that policy on non-medical home care services. And it is the first time that the home health or skilled side of the industry has recognized a need for non-medical care to help with the activities of daily living in the home. So again, if you’re thinking about an industry, I think it’s very very interesting that now for the very first time medical is meeting non-medical and seeing the importance of what that is.
And one of the other things I might add is that this industry is not just about seniors. They certainly drive a lot of the dollars and a lot of the growth and will continue to do so because they’re the most vulnerable population we have, but we deal with a lot of folks every day between the ages of 18 and 64 that have chronic illnesses, that have injuries that they are looking at, that may need joint replacement surgeries, that have health and disease states like multiple sclerosis and cancer that affect them or ALS. There is a world of population non-seniors that are out there that need care both from home health and home care, and so again, if we frame it back to where Lorraine started this: why would you consider this industry? There are a multitude of reasons for wanting to consider a recession-resistant industry such as home health or home care.
Yeah I think one final note from my perspective is that this type of care is one-on-one care. This is a people business. You know you can’t outsource this to, you know, somewhere outside the US where someone could handle the care by phone. It really is something you need to be one-on-one with that, and it’s very difficult to also try to automate this. You might be able to supplement the
care with automation right, but you can’t actually have a robot so to speak deliver the quality of care that an individual wants. They can help support it. You know that’s another aspect to Mike’s point about being recession resistant.
Yeah, that’s a great great point by the way.
Okay, thank you.