Home Health Business Growth
The home health business is growing, and current trends are showcasing that growth in a number of interesting ways. Beginning in 2014, the industry really began to take off, with more seniors opting to stay out of nursing homes and receive assistance in their own homes. According to The Gazette, based in Cedar Rapids, IA, “The U.S. Bureau of Labor Statistics has projected job growth of 70 percent by 2020 for home health and personal care aides, compared with a growth rate of 14 percent for the U.S. job market at large.” That is largely because 27 million Americans are expected to choose home health care over nursing home care by 2050. With that of course means that there is a growing demand for home healthcare insurance.
Retiring Populations Mean Big Business
One of the most important aspects of home health care’s future is the shifting retirement population. According to a 2016 Sage Journal article by Steven Landers, et al, the number of people who are over 65 years of age will outnumber children under five years of age by 2019. That points to retirement in greater numbers, and a group of individuals who will need more care as they reach older ages. Additionally, more and more of these people are stating that they will never go into a nursing home. They want to live in their own homes, and often they want to die there, as well.
They have worked hard to have the resources to do that, since home health care can be expensive. However, one of the advantages to home health care is that those who need it can choose to have full-time or part-time care. That gives them choices, and helps them reduce their costs if they do not need someone to care for them in their home on a 24/7 basis. As baby boomers retire and age, they are fueling the demand for more home health business options, and the home health companies are obliging.
More Seniors Are Staying in Their Homes
Many of the baby boomers who are at the heart of the uptick in the home health business have made the choice to stay in their homes. Others have adjusted their choice as they have aged, because of the lack of openings in nursing homes in their area, or other factors.
But that is not to say that the home health industry does not face any challenges. Regulations were not in place for these agencies and companies early on, and now they are being more thoroughly addressed. That has led to complexities that have to be managed appropriately, according to an article by The Fox Group, LLC. This means that strategic planning is necessary for home health companies that want to continue to provide services.
The Number of Home Health Companies is Growing
Competition is also a rising issue, as the number of home health care companies is growing with the rising demand for their services. According to Nurse Next Door, the home health industry is a $93 billion per year business as of January of 2018, and that number may rise in the future.
As of July of 2016, the CDC reported that there were a total of 12,400 agencies providing home health care in 2014, with 80% of those having for-profit ownership. As more boomers develop a need for health care services and want to age in their own homes, the number of home health businesses is expected to continue to grow for the foreseeable future.