The future of home care is met with ever-increasing demand but a severely limited number of caregivers. This creates endless opportunities to help close the gap.
Home Care Market Growth
The demand for personalized, in-home care services is skyrocketing, driven by an aging population, a growing preference for aging in place, and the prevalence of chronic diseases. Grand View Research finds that the home healthcare market was valued at $152.9 billion in 2023 and will grow to $253.4 billion by 2030.
Challenges to Expect
While revenue is expected to grow by over $100 billion in the next seven years, like many other industries, home care faces a financial battle with rising service costs. Home Health Care News (HHCN) finds that agencies are reporting a 15% to 40% increase in the cost of care. While home care agencies might be forced to raise prices, it’s critical to remember these services are vital to our senior population, which makes them recession resistant. Plus, HHCN also reported that agencies believe bill rates will hit a ceiling and stabilize in the future of home care.
With the cost of care rising, agencies are choosing between catering to wealthier clients or diversifying their revenue streams. At A Place At Home, our franchisees can offer a variety of services that allow them to encompass the entirety of the aging journey. Those services include not only in-home care but also care coordination, senior living alternatives, and staffing solutions.
In addition to the caregiver shortage, there’s a notable issue with clients poaching caregivers, meaning caregivers leave agencies to work directly for clients, often for better pay or steadier hours. So, if you’re looking to join the industry, invest in your workforce retention programs to avoid this. Joining a franchise like A Place At Home is another way. Our franchise system has some of the highest caregiver satisfaction ratings in the industry, and many of our locations earn Home Care Pulse’s Employer of Choice award.
Behind the Demand Increase
Demographic shifts are driving the rise in demand for home care. Specifically, the U.S. Census Bureau projects a notable surge in the population of Americans aged 65 or older, from 52 million in 2018 to 95 million by 2060. Already, 4.5 million patients in the U.S. receive some type of home healthcare annually, according to Market.us Media. Considering these figures and the U.S. Department of Health and Human Services’ estimation that 70% of seniors will eventually require some type of long-term care, you can anticipate a substantial increase in the number of in-home care patients in the coming decades.
The pandemic has also altered senior care. Besides a patient’s preference for at-home care for its convenience and personalization, families recognize the safety component. The fear of infection with group living hindered the future of nursing homes. There’s also been a growing recognition of the benefits of in-home care over institutional settings, fueling the future of nursing homes and the future of hospice care to lean more toward home-based models.
Economic Resilience of In-Home Care Businesses
The resilience of the home care industry in economic downturns is notable. Unlike many other sectors, home care services are essential and can’t be deferred or replaced, making them less susceptible to economic fluctuations. This resilience stems from the constant and growing need for healthcare services, especially for seniors and those with chronic conditions.
The Future of Home Care Looks Promising
Given these factors, home care is emerging as a promising business. It offers scalability, resilience to economic fluctuations, and a continuous demand driven by demographic trends and changing healthcare preferences. For franchise investors, aligning with a brand like A Place At Home that has a comprehensive approach and is at the forefront of industry trends can be a particularly strategic move.
Partner with a Premier Provider: A Place At Home
A Place At Home stands out in this flourishing market. Our comprehensive approach positions our franchisees at the forefront of the industry. That approach covers a range of services, from companionship to staffing solutions. We’re committed to quality through our robust franchise support system that provides a solid foundation for new investors like you. Additionally, our innovative strategies in workforce development, technology integration, and customer service set us apart and make us a leader in shaping the future of home care.
Are you ready to get started? Fill out our request information form on our website to begin the journey.