Month: March 2023

The global senior living market is projected to grow by $91.37 billion over the next five years, according to Technavio. This isn’t a surprise, as the U.S. Department of Health and Human Services says 10,000 people turn 65 every day.

The senior living industry has shifted after the pandemic. Demand for nursing homes has fallen while at-home care and assisted living continues to soar. Find out why.

Current Trends in the Senior Living Industry

Seniors are looking to “age in place,” or stay in their homes as long as possible. An AARP survey found that 77% of adults 50 and older want to remain in their homes for the long term. Among the reasons is the financial burden it can put on their loved ones if they move into a nursing home. This trend alters the industry by increasing the demand for at-home care services.

Senior home occupancy is on the rise, with the National Investment Center for Seniors Housing & Care reporting in the fall of 2022 that senior housing occupancy was 82.2%. That’s the fifth straight quarter of increases, with a total of a 4.3% increase from the lowest point during the COVID-19 pandemic. Researchers say while that occupancy is less than optimal, the number of seniors needing housing and care will only grow.

Another trend in the industry is an emphasis on chronic conditions and preventative care. Nearly 95% of seniors have at least one chronic condition, and almost 80% have two or more.

Seniors are also looking for more programming in their communities, whether they’re in an independent living center or a nursing home. They want programs that will improve their quality of life and all-around wellness. These programs could include fitness classes, healthy meals, or planned social activities.

Lastly, an unfortunate trend expected to continue throughout 2023 is staffing shortages, especially among nurses. In an American Health Care Association survey in June of 2022, 60% of nursing homes will limit the number of new occupants due to staffing shortages. Nearly all nursing homes are having trouble hiring new team members and asking current employees to work overtime.

Nursing Homes Struggling

The demand for nursing homes is dropping. More families are turning to in-home care for assistance instead of putting their loved ones into senior living facilities. Concerns about cost,  risk of infection, and the level of care are driving factors toward this shift. SeniorLiving.org finds the monthly median cost for a nursing home ranges between $7,908 to $9,034, while the monthly median price for an assisted living facility is around $4,500.

Nursing homes are facing significant financial struggles. In 2022, the Centers for Medicare & Medicaid Services found that 129 nursing homes closed in the country. However, that number is probably lower than the actual count because experts say government reports are slow at keeping up with closures. Aiding the financial struggles is inflation. The rising costs of supplies and food are eating away at profit margins. In addition, nursing homes are having to increase staffing wages to attract and retain talent.

Hiring challenges also affect how many residents they can accept. So, if they’re short-staffed and can’t take more patients, then they have rooms sitting empty.

Benefits of Opening a Home Care Franchise Like A Place At Home

Besides the shift towards in-home care, there are many other benefits to opening an in-home care franchise. First, the startup costs are significantly lower because you don’t have to buy or rent a large facility. Instead, you just need a small office to hold consultations and meet with your staff. Inflation doesn’t affect you as much because you’re not supplying food for your clients.

If you don’t have the caretakers, you just don’t accept as many clients, but you’re not losing as much money as if you were running a facility and having rooms sit empty. However, a business like A Place At Home is easily scalable; you can add staff as your client list grows.

Plus, in-home care is often considered a long-term option, while nursing facilities are usually short-term. Families enjoy at-home care for the one-on-one service they receive from your caregivers, compared to a nursing home where a nurse could have multiple patients they’re looking after.

If you’re looking into how to start a non-medical home care business, let A Place At Home help. We have a proven business model that can guide you to success within the senior living industry. Learn more by submitting a franchise form.

Behind the Shortage

The senior population is rapidly growing, with 10,000 Americans turning 65 daily. Many of them will eventually need assistance even with daily living activities such as laundry or grocery shopping, let alone those that need medical help.

The country has struggled to meet the caregiver demand since the onset of the COVID-19 pandemic, as millions of caretakers have left the field for various reasons. On top of that, now, with the increasing population, the United Disabilities Services Foundation (UDS) expects the national caregiver shortage to reach 151,000 by 2030 and 355,000 by 2040. On average, more than 700,000 caregiving positions are expected to open each year through 2032, according to AARP.

Why is the Demand for Caregivers Growing?

More people are aging alone. Solo agers are single, divorced, widowed, childless, or their children live far away. This group of seniors requires caretakers, especially if they want to remain in their homes for as long as possible. The National Poll on Healthy Aging finds that 88% of adults aged 50 to 80 want to age in place.

Besides the growing senior population and the desire to age in their home, Global Coalition on Aging finds that caregiver turnover rates range from 40% to 60%. Common reasons caregivers leave the field include low pay, lack of respect, need for benefits, and limited potential for professional growth. On top of that, the work of a caretaker is extremely demanding. Clients will have a variety of needs. In addition, they could be dealing with personality-altering diseases such as Alzheimer’s. It can all be overwhelming and strenuous sometimes, leading caregivers to experience burnout.

Solving the Caregiver Shortage Crisis

Companies are looking for ways to retain their caregivers and recruit new ones so they can take on more business. AARP finds that workers seek incentives like better pay, sign-on bonuses, more attractive benefits, and career advancement opportunities. While UDS finds that caregivers are looking for society to elevate their perception of their career choice, provide them with respect, and be considered a part of the healthcare ecosystem.

Along with career advancements comes the desire for more training and educational programs. The software company Home Care Pulse finds that agencies that offer their caretakers at least eight hours of orientation training and 12 hours of ongoing training see an increase of more than $700,000 in revenue compared to those that provide the minimum number of hours for compliance. Training sessions also decrease the chance of a 90-day turnover. This can save you time and money by not constantly replacing caregivers. As a potential business owner, why would you skip out on an opportunity to increase your revenue and workforce?

Why is Now a Good Time to Enter the Home Care Market?

Don’t let the worry over the caregiver shortage scare you away; the other home care industry trends make now the perfect time to join the growing industry. First off, the global home healthcare market was worth $301 billion in 2021 and is expected to reach $813 billion by 2028, according to SkyQuest Technology Consulting. Following some of those solutions to solve the caregiver shortage can help you recruit and retain workers. Another way that can help you is opening a non-medical home care franchise like A Place At Home. This allows you a larger pool of caregivers to hire from.

Statistics show that home care agencies are growing. Home Care Pulse reports that providers recently experienced the highest client growth in four years, with median revenue also increasing.

The demand will only increase for in-home care as the senior population grows. A non-medical care business also allows you to work with your clients for the long term, whereas medical care is typically short-term.

Start an A Place At Home Franchise

Join the thriving industry with a franchise experiencing an average of nearly 92% overall caregiver satisfaction rate. We’re built on a senior-focused care model that provides a complete service model, from in-home care to care coordination, finding senior living alternatives, and helping those facilities with staffing solutions. Learn more about your next franchising opportunity by submitting a franchise form.