Forecasting the Future of the Home Health Care Industry
You can learn a lot about the future of the home health care industry by taking a closer look at its past. Today’s post looks at senior demographic and home care statistics to project the future of the home health care industry, as it pertains to prospective business owners.
What do senior demographic stats tell us about the future of the home health care industry?
For home health care providers, studying senior demographic statistics is akin to analyzing a potential market. Seniors require care for diverse and dynamic conditions such as chronic illness, disability, and more, and survey findings have suggested that in-home care is favored by over 85% of respondents. With this in mind, the value of studying demographic growth is clear – the following statistics represent potential customers for your prospective business.
Historically, seniors made up a relatively small percentage of the population. Going back to the 1930s, prewar America’s elderly numbered less than 7-million, which accounted for only 5.4% of the total population.
One of the main factors at play here was the era’s relatively short life expectancy, which was about 58 for men and 62 for women. Amazingly, neither men nor women lived long enough to fall within the 65-and-over bracket that is now considered the standard marker for seniors. Since then, the science around medicine, nutrition, and wellness has advanced considerably, and the life expectancy has shot up accordingly. From 1930 to 1960, the life expectancy had risen to 70, and a2017 report from the World Bank shows the average lifespan for a United States resident to be 79 years.
The average person is living more than 20 years longer than they did in 1930, and senior demographic stats have risen accordingly. In the year 2000, seniors aged 65-and-over accounted for more than 12.4% of the population.
By 2030, this figure is projected to reach nearly 20% as the Baby Boomer generation continues to age into their Golden Years. That means 1 in 5 Americans will be eligible for the home health care services that your franchise provides.
More importantly, the over-85 demographic is growing faster than ever. In 2012, 5.9-million people aged 85 or older resided in the US, but this number is projected to grow to 19.4-million by 2050.
What do home care statistics tell us about the future of the home health care industry?
- In 2002, the prevalence of moderate to severe memory impairment and cognitive disorders ranged between 5-32% for those ages 65-85. This suggests that a growth in mental health home care services is imminent.
- In 2007, an estimated 12-million Americans required long-term care. These care needs were highly variable; in 2015, more than 8-million Americans received support from at least one of the five main long-term care service providers (home health care, nursing homes, hospices, residential care, and adult day service centers). Together, these statistics suggest thatmulti-service suites will emerge as top performers in the home health care industry, with expanded services equating to increasing revenue streams and the ability to assist the maximum number of people.
- By 2050, the number of home care service users is projected to reach 27-million, representing more than double that measured in 2000.This incredible growth in demand suggests that now’s the time to get involved with a home health care
Forecasting the future of the home health care industry tells us that senior care services are more profitable, resilient, and needed than ever before. If you want to learn more about getting started in this industry, please visit http://www.executivehomecarefranchise.com for full cost and requirement breakdowns.