Over the next fifteen years, the demand for in-home care is expected to increase at a compounded annual growth rate of 7% to 10%. This is primarily due to the fact that people from the Baby Boomer generation are moving into their later years, and they are requiring a far more significant degree of assistance in regard to their day-to-day living. The anticipated growth for this industry will span both non-medical in-home care and skilled care services.
Of special note is the ongoing demand for non-medical in-home care as many families live far distances from their older relatives (especially parents). This creates an enormous challenge for families that want to ensure that their loved one is secure with proper supervision throughout the day. According to Grandview Research, the demand for these services will have a compounded annual growth rate of 10.21% through 2030.
One of the primary challenges that is going to be faced by the industry in the coming years is the shortage of qualified non-medical in-home care aides and registered nurses who are able to provide these services for older people. This issue will be especially prevalent in the area of skilled care, given that many registered nurses can find higher-paying positions at medical practices and hospitals. This is compounded by the constraint that many families directly pay for in-home care services, and their ability to receive reimbursement is somewhat limited.
One of the principal ways that this can be remedied is by expanding the non-medical in-home care aspect of a home care agency with the intention of having trained personnel remain as direct key employees. When an individual requires a greater degree of assistance, which falls under the purview of skilled care, an independently contracted registered nurse or licensed practical nurse can be retained to render these specialized services. This is especially important after a major surgical procedure has been completed, as in-home care services specific for addressing post-surgical matters are typically reimbursed by insurance.
Beyond the demand that is growing specifically for the needs of older people, many in-home care agencies are also addressing the increased demand related to post-care after elective procedures. Complex cosmetic procedures often require a substantial degree of post-surgical care over a one-week to three-week period. As such, many of these agencies have developed a specialized niche for providing short-term assistance through a registered nurse or a licensed practical nurse. These services have become very popular in population-dense wealthy areas throughout the United States.
One of the other major trends that is occurring within the industry is to use a team approach when providing in-home care services to a client. Although all of these agencies retain registered nurses, licensed practical nurses and licensed vocational nurses can be employed to manage day-to-day matters while having a registered nurse prepared to address a more complex situation. This approach not only provides a substantial degree of efficiency from a workflow standpoint, but it also reduces the costs that the client will incur on a per-hour or per diem basis. Technology has allowed this approach to occur relatively efficiently, given that scheduling and communication among associates can occur seamlessly.
Additionally, many of these firms are taking a highly focused geographical approach to their operations. For many years, most healthcare agencies would work across a wide spectrum of towns and cities within it in a specific region. By focusing specifically on one geographic area, typically within a 10-mile to 15-mile radius, home health care agencies can have a far greater degree of control over their operations. This s also provides faster response times when specific issues need to be addressed.
As it relates to technology and business planning, many in-home care agencies are beginning to use highly specific demographics to ensure they can operate profitably in any given area. This includes an extensive analysis of population trends, especially the number of people who will be over the age of 75 within the next decade. This further ensures that there can be a substantial degree of economic viability when developing and expanding these types of businesses. It is also important to note numerous economic metrics when examining a new market to establish a home care service.
This includes an analysis related to the sensitivity of how inflation, fluctuations in GDP, changes in consumer spending, and changes in interest rates can impact a specific target market area. Additional factors that home care agencies are considering when establishing a location focus on the amount of Social Security that an individual receives each month, which can help defer a substantial amount of their care costs.
Matthew Deutsch
Matthew Deutsch is a highly experienced business plan writer that has been working with clients for the past twenty years. His firm has developed a highly streamlined and comprehensive protocol for creating a home healthcare agency business plan.
