Senior Care Franchises Thriving as ‘Gray Rush’ Continues Undaunted
Like the “Gold Rush” that brought a surge of miners out to seek their fortunes throughout the 19th century, the explosive growth of America’s senior population has attracted a number of entrepreneurs and investors to the idea of starting their own senior care franchises.
Today’s post cracks into 3 underlying factors that make the “Gray Rush” so attractive to investors in 2018. Read on to learn why so many are getting involved in the long-term care industry, and how to get started yourself!
Senior Population Growth Continues Undaunted
Elderly people already constitute a large group of consumers with significant buying potential, but the senior population will continue to swell for the foreseeable future. In fact, most contemporary research cuts off around the year 2050, when seniors will account for nearly one third of the total US population.
That’s an incredible figure. It’s no wonder so many senior care franchises are cropping up around the country–what other industry can claim their target market is multiplying at this rate?
Surge of Senior Care Franchises Yet To Make A Dent in Demand for Long-Term Care
Despite the popularity of senior care franchises in investment circles, there is still a massive number of seniors with unmet care needs. This is true of home care aides and skilled nurses, with the Atlantic reporting that 1.2-million job vacancies are expected for the latter between 2014 and 2022.
Put another way, the supply of qualified senior care is dwindling even as the demand skyrockets. And that’s great news for senior care franchises.
Americans are Just Beginning to Understand The Cost-Efficacy of Senior Care
Millions of older adults in the United States are still relying on informal caregiving from friends and family members to help them with transportation, activities of daily living, and more. Recent estimates by the National Alliance for Caregiving and AARP suggest that roughly 1 in 5 adults are currently providing care for an elderly relative or friend over age 50.
Many of these informal care arrangements are made because families believe they cannot afford the skilled services of senior care franchises. But new research suggests informal care could cost families even more than the formal alternative.
In a study commissioned by the journal of Health Services Research, Chari et al. (2015) explored the different costs associated with informal caregiving. The total opportunity cost of informal elder care in the US was estimated at 30-billion hours of care, which amounted to around $522 billion annually (Chari et al, 2015, p. 871-872).
Informal care is also frequently mistaken for being “higher quality.” People assume that loved ones will provide better care than strangers, but the research says otherwise. Not only do skilled workers from senior care franchises have superior training and experience, but also care recipients tend to prefer formal care because it does not burden their family. Since senior care franchises are being paid to ensure their care needs are met, seniors can speak up and state what help they need, guilt-free.
As more people become aware of these facts and figures, the demand for skilled services from senior care franchises will continue to rise. This is especially true for Executive Care owners, whose staff benefit from top-tier training and accreditation, and whose business policies can attract cost-sensitive clientele by working with long term care insurance providers, Veteran Affairs, Workers Compensation Insurance, and various other religious and social service organizations for financing.
Start your Own Senior Care Franchise with Executive Care
Bluethmann, S. M., Mariotto, A. B., & Rowland, J. H. (2016). Anticipating the “Silver Tsunami”: prevalence trajectories and comorbidity burden among older cancer survivors in the United States. Retrieved from http://cebp.aacrjournals.org/content/cebp/25/7/1029.full.pdf
Chari, A. V., Engberg, J., Ray, K. N., & Mehrotra, A. (2015). The opportunity costs of informal elder‐care in the United States: new estimates from the American time use survey. Health Services Research, 50(3), 871-882.