Home Health Care Franchises Experiencing Growth, Providing Seniors with Services
A recent article in the Wall Street Journal featured the growing trend of home health care services for seniors, particularly in the franchise industry. In fact, the senior home-care sector has grown by 6.6% annually, faster than the overall franchise industry’s 2.6% compound annual growth rate, according to market researcher FRANdata. About half of home-care agencies are now franchises, up from about one-third five years ago, according to mark research firm Home Care Pulse LLC.
The growth in home health care reflects the growing aging population and its needs. According to the Census Bureau, it’s projected that by 2025, the number of Americans age 65 and older will hit 66 million, up 38% from 2015. Meanwhile, home health-care aides and personal-care aides are among the nation’s fastest-growing occupations, according to the Bureau of Labor Statistics.
In addition to addressing a growing need for an aging population, the home health care franchise is attractive because of its lower initial investment costs when compared to other franchises. For example, initial investments average $115,000 for home-care franchises, according to FRANdata, which is well below the nearly $1 million needed for sit-down restaurants.
There are, however, additional cost pressures for the home health care industry due to increased federal and state oversight regulations and employment laws such as those involving wages. For example, the Labor Department has prohibited companies that employ and send health-care aides to work in client homes from claiming an exemption from the minimum wage and overtime pay.
As this industry continues to see a boon, the importance of securing the right insurance program is critical to the continued success of a home health care agency or franchise. Ensuring that organizations have Professional Liability, General Liability, HIPAA Violations, Sexual Abuse, Workers’ Compensation, Employment Practices Liability, Hired & Non-Owned Auto Liability and other key coverages as part of an overall comprehensive insurance and risk-mitigation plan enables them to effectively address their various exposures.
Caitlin Morgan, specialists in home health care insurance, can assist you in expanding in this growth niche. We have the products and expertise to support your efforts. To learn more about our products, please contact us at 877.226.1027.