HOME HEALTH CARE?
Needless to say, the aging population is a significant factor in the home health care market as there are currently 55 million seniors in the U.S. - with over 10,000 baby boomers turning 65 every day. By 2030, seniors will make up an incredible 20% of the U.S. population (this is a significant increase from 2010, when only 13% of the population was 65 or over). As people live longer, chronic diseases have emerged as a major cause of disability and functional dependency requiring long term care services.
Nearly 1 in 5 seniors believe that the housing options available to them are unaffordable. Seniors receiving home health care generally need fewer trips to doctors and hospitals. Home healthcare provides patients with a more cost-effective option for long-term care when compared to other institutional providers (that require extensive physical infrastructure). As a result, home healthcare reduces overall costs for patients.
The demand for home health care is rapidly increasing where 90% of seniors have a strong desire to stay in the comfort of their own homes as long as possible as opposed to staying in assisted living facilities or convalescent homes. Over 80% of seniors report that they will be able to stay in their homes without having to make any significant home modifications. It's also estimated that 7 out of 10 people will require long term care in their lifetime. Care needs are rapidly on the rise.
With few competing consolidators, we can achieve significant growth via acquisitions that expand our geographic footprint. The home health care industry proves to be highly fragmented with the top 10 providers only representing 20% of the total market. While acquiring fold-ins that complement our existing networks, we're able to leverage the our team's marketing, skilled management team, and infrastructure.
The average gross margin ranges from 30-40%. Alternative post-acute care services require high capital expenses as opposed to home healthcare where labor is by far the largest expense in the industry. Although the cost depends heavily on the type of service and provider (medical vs non-medical), home health care providers can still better control costs while also providing a comprehensive set of services.
If you're an owner of a hospice, palliative, or home health and interested in selling your business or taking part in a joint venture, please email us at or fill out our contact form (below).
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