Heath Turner, CFE | Director of Affiliate Services – Business Alliance, Inc
I recently had the privilege of joining President of Homewatch Caregivers, Todd Houghton for a presentation and discussion on the future of senior care in franchising and these are my takeaways watch the full video HERE.
At this point, I think we all understand that the population is aging and we’re in the midst of a “Silver Tsunami”, but what does that mean for franchising exactly? There is a misconception among franchise brokers and their candidates that the senior care space has become oversaturated and there is little opportunity left in the U.S. After listening to Todd, I can say that this is unequivocally false. Here are some figures to think about to give you an idea of the scale in this market:
The older population (65+) is on pace to outnumber children in the U.S. by 2035.
76% of that growing population of seniors prefer to age in their own home.
Senior care is currently a $12 Billion industry that has experienced double-digit growth year-over-year since 2008.
The senior care industry is going to need an estimated 2.3 Million more healthcare workers to keep up with the demand.
Long story short, while the number of senior care providers in the franchising space has grown exponentially the last decade, the demand for these services still vastly outweighs the supply.
Senior Care franchises already provide every service an aging individual and their family may need. From referral services, to medical and non-medical in-home care, to moving and estate sales there is a quality franchise brand that can help. The issue that lies ahead is not a lack of white space for an opportunity to benefit from this population shift, the issue is continuing to find candidates to run these businesses as existing franchises grow and new brands emerge.
While we’re on the conversation on what lies ahead, here are some other interesting aspects on the future of Senior Care in franchising. Like many other industries, technology is going to play a huge role in the growth of this industry. The newest advancements are things like remote monitoring devices, telehealth services, and artificial intelligence. Remote monitoring devices give loved ones a sense of security knowing they can check on their relative’s condition even if they’re in another state and the patient themselves can know vital information about their own health at all times. Telehealth and A.I. will provide 24-hour support for the client while making franchisee’s jobs easier at the same time.
Senior Care franchises are creating more personalized care plans to cater to the needs of their clients. They’re also connecting their entire spectrum of care through every stop in a phrase Todd referred to as “interopability”, meaning that everyone involved in the care for this client is on the same page and has clear lines of communication to provide the best service.
One of the biggest question marks when it comes to senior care franchises is labor. With so many employees possible, where do they find the right staff? Growth in compensation and retention across the board is going to make finding and keeping caretakers and other staff much more manageable for franchisees. There is already signs of a universal agreement to improve the lives of employees and they are projected to continue on an upward trend with better pay, better training, and opportunities for career advancement.
I came away from Todd’s presentation with many of my own questions answered. Senior Care isn’t going anywhere, and if anything it needs more new franchisees than it ever has before.
“I’m seeing more and more people coming to us as corporate refugees, looking for a business they can be passionate about, and senior care is the most passion-driven business” – Todd Houghton, Homewatch Caregivers
