Aging Population
The Home Health Care Industry has been benefiting from the aging population, a trend that is forecast to continue in the coming years. (Phillips, 2014) Its estimated that between the years 2010-2050 that the senior population is set to swell dramatically (Franchisehelp.com, 2015), with people over the age of 65 being expected to grow at an annualised 3.1% by 2019. (Phillips, 2014) The industry is expected to impact approximately 27million people within this time frame. (Franchisehelp.com, 2015)
The main driver for the rising demand of the Home Health Care Industry is the affordability of home care in comparison to substitute services (hospitalisation, aged care facilities etc).
(Phillips, 2014)
In Australia, the number
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It is also anticipated that significant profit losses across the industry, with average margins decreasing from 5.9% in 2009 to an estimated 3.3% in 2019. (Phillips, 2014)
But, the Home Health Care Industry is expected to grow steadily to $193billion by the year 2030. (Franchise.org, 2015) The aging demographics and the cost-effectiveness of the home health care support this industry revenue increase. The aging population will continue to foster revenue growth for this industry because these specific demographics requires more of the health care services compared with all other aged groups. (Phillips, 2014)
The industry revenue primarily comes from government reimbursement programs, such as Medicare and Medicaid, which together account for an estimated 65% of the total revenue. As well as the private health insurance payments that account for about 8% of the industry revenue. (Phillips,
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[Yahoo Small Business, 2015] It has been said that Home Helpers franchisee owners have seen, on average, as much as a 24% increase in sales and have watched the value of their franchise continue to increase each year. (Franchisemall.com, 2015)
Because Home Helpers is a low cost, home based business, as an investor you will have a low initial investment fee that includes the business system, marketing programs, and, training and operations support. (Home Helpers | Senior Care In Home Care Elder Care Senior Care Franchises, 2014)
Profitability
Profitability of a franchise depends on the size of it and its specific healthcare offerings. The profit margins are influenced by patient volumes and payer reimbursement. (Phillips, 2014)
Return on Investment
The Franchise Business Review states that the potential return on investment (net profit divided by total assets) is significantly higher than many other franchise businesses. (USATODAY.COM, 2015)
(Csimarket.com,
According to Statistics Canada Report 2013, “life expectancy in Canada is one of the highest in the world” and it is expected to grow, making the aging population a key driver to our health-systems reform. By 2036, seniors in Canada will comprise of twenty five per cent of the population (CIHI, 2011). Seniors, those aged 65 years and older are the fastest growing population in Canada. Currently there are approximately 4.8 million Canadians aged 65 or greater. It is projected that this number will increase to 9 to 10 million by 2036 (Priest, 2011). As the population get aged the demand for health care and related services are expected to increase. Currently, the hospitals in Ontario are frequent faced with overcrowding emergency departments, full of admitted patients and beds for those patients to be transferred to. It has been reported that 20% of the acute care beds in the hospital setting are occupied by patients that do not require acute hospital care. These patients are termed Alternate Level of Care (ALC). ALC is “When a patient is occupying a bed in a hospital and does not require the intensity of resources/services provided in this care setting (Acute, Complex, Continuing Care, Mental Health or Rehabilitation), the patient must be designated Alternate level of Care at that time by the physician or her/his delegate.” (Ontario Home Care Association, 2009, p.1).
University of California (2006). An Aging U.S. Population and the Health Care Workforce: Factors Affecting the Need for Geriatric Care Workers. University of California, San Francisco, Center for California Health Workforce Studies.
To deal with the issue of an aging population, an awareness campaign about the health issues that commonly affect aged people should be run by the government and non-governmental agencies. In addition, awareness should be created among the young to accommodate the elderly; at home as well as at work places...
Cost of medical care continues to increase and reimbursement is declining, therefore it is vital for the organization to consider types of payers that the service will attract. Knowledge of the types of insurance provided and the percentage of patients with Medicare, Medicai...
are forced to live off of. What happens if there is not enough to go
The health care industry is positioned for the global market place. It is expected to grow exponentially in health-related services for the elderly. China’s population of individuals over sixty years old is expected to grow to one third in the next twenty-five years. Though their culture view aging somewhat differently than in United States, they are interested in the attractive senior living options established here. Senior care encompasses private care facilities, home health care, products, drugs and medical equipment. As the largest health care market in the world American companies have made significant global inroads over the last two decades. These businesses are positioned to offer additional services directed at retirees, and children who will be responsible for their parents and potentially their grandparents as well.
Taking care of the individuals that are getting older takes many different needs. Most of these needs cannot be given from the help of a family. This causes the need of having to put your love one into a home and causing for the worry of how they will be treated. It is important for the family and also the soon to be client to feel at home in their new environment. This has been an issue with the care being provided for each individual, which has lead to the need of making sure individuals have their own health care plan.
Another focus for change is that over the years the demand for home and community care over hospital care has continued to grow, as stated by the Queens nursing institute “Recent health policy points to the importance of improving and extending services to meet the health and care needs of an increasingly older population and provide services which may have previously been provided in hospital within community settings”.
African American senior citizens face a health care crisis too. They have worked all of their lives to secure retirement, but their retirement has been threatened because of the rising cost of long-term medical care. Insurance companies have failed to provide affordable long-term care, protection that most senior citizens need. This lack of long term care and affordability has been a serious problem for the health care system. In some cities, the shortage of hospital beds is so serious that it is common for patients to stay in emergency rooms before they can be admitted to an inpatient room (Drake 109). More than one thousand hospital beds are occupied by people who could be better care for in nursing homes or through home health care (Drake 110). Of the disabled elderly 1.3 million reside in nursing homes (Drake 10). These patients are unable to perform two or more of the basic activities of daily living without assistance.
Healthcare is considered of one of the most complex business models in the American Industry because it is one of the only industries where the consumer actually does not technically pay for the service he or she receives (Kudyba, 2010, p. 2). When consumers go to nail salons or hair salons, he or she pays the beautician for the specific service he or she asks for. In the healthcare industry it is totally different and most consumers do not understand the complexity of this business model. The consumer actually pays insurance companies and the insurance companies pay the provider/hospital based on negotiation arrangements from the data exchanges they receive (Kudyba, 2010, p. 2).
These clinical staff will make house calls to United Healthcare clients secured by Medicare who face perpetual, and conceivably costly, conditions, for example, diabetes or congestive heart failure (Triad Business Journal, 2013). It 's a speculation United Healthcare trusts enhances tolerant health through more financially savvy, higher-quality care, and thus, helps the organization 's main concern (Triad Business Journal, 2013). It is expected that the House Calls system will be looking after 75,000 Medicare patients before the current years over (Triad Business Journal, 2013). United Healthcare right now covers around 250,000 seniors in the state with its Medicare Advantage items. Moreover with the strategic plan to hire more nurses and healthcare providers, such as in home visits offer the opportunity to assess the patient’s medication regimens, offer routine physical evaluations and react to any healthcare demands (Triad Business Journal, 2013). United Healthcare plans and suppliers envision such normal, preventive care will take off emergency room office visits or healthcare facility stays for more genuine, and costly, problems in the future (Triad Business Journal,
As the population of the United States ages and lifespan increases, the U.S. is being faced with challenges that could either hurt the country or benefit it if plans are executed correctly. By the year 2050, more than thirty-two million Americans will be over the age eighty and the share of the 80-plus generation will have doubled to 7.4 percent. Health care and aging population has become a great deal considering the impact it is having on the U.S. The United States is heading into another century with an outstanding percentage of people within the aging population. Today’s challenges involving health care and the aging populations are the employees of health professions being a major percentage of the aging population, the drive into debt, and prevention and postponement of disease and disability.
When it comes to operating nursing home facilities, there are many stakeholders involved depending on whether the institution is for-profit, non-profit or government owned. Majority of nursing homes are for-profit organization and they account for almost 70 percent of nursing homes, while non-profit nursing homes account for less than 30 percent and less 6 percent are government owned (Nursing home data Compendium, 2015). Nearly 95.5 percent of nursing homes across the state are dually certified, meaning they have both Medicare and Medicaid certifications (Center for Medicare and Medicaid, 2015). Nursing home funding comes from four different sectors. Nearly fifty percent of their revenue come from Medicaid, followed by Medicare which counts for twenty percent, and the rest of payments come from a mixture of private-long-term care insurance and out of pocket (Yoder, 2012).
Healthcare isn’t just health insurance, but hospitals, doctor’s offices, and dentist offices to name a few. Within the healthcare industry, some just see it as doctors, but there’s so much more behind it. The healthcare industry is the one industry that will never disappear, but will always be improving with better technology.
Not having to answer to a corporate boss is the dream of many and the flexibility that owning a business franchise creates provides this option. Success is not reached by simply creating a business, however. The level of success is measured by the size and efficiency of the business. Business growth is the driving force of the economy. The additional jobs and revenues created when a business expands allow the economy to grow at exponential rates. One of the fastest and most popular ways to increase the size of a business is to turn it into a franchise, which can then be purchased by individuals. Franchising provides opportunities that are beneficial to both the parent company and the purchaser. The company that owns the business can expand without having to pay such a large initial cost to open a new store since the franchise purchaser pays a cost to open the business. As well, the company can regulate many of the business activities so that there is a sense of consistency throughout all of the locations. The purchaser is allowed to use the trademarks and goods of the franchise which already have a large market presence. As well, they are provided with training and work standards by the company to help their business run smoothly (Kalnins & Lafontaine, 2004, p.761). Looking at the business model of the world’s largest food retailer, McDonald’s, provides great insight into franchising and business growth in general as well a better understanding of a global business that utilizes the franchising technique.