"More than 65 million people, 29% of the U.S. population, provide care for a chronically ill, disabled or aged family member or friend during any given year and spend an average of 20 hours per week providing care for their loved one." http://www.nfcacares.org/who_are_family_caregivers/care_giving_statstics.cfm
That seems like a huge potential client base for providers of elder services. But if your revenue model-be you a non-profit or a for-profit service provider and your revenue projections are based on elders and/or caregivers who pay you from their private funds when their insurance or government benefits run out, you will soon be in for a big disappointment.
IS THE MARKETPLACE FOR FEE BASED ELDER SERVICES BECOMING OVERCROWDED?
Many would be " eldercare entrepreneurs" offer fee based services such as geriatric care management,(GCM) elder law private practices, and home care franchises. These business models operate on the "billable hour" model. Hourly rates range from $24 for a home care aide, $125-$200 for private GCM services, and $175-$400 hourly for elder law focused estate planning and guradianship/conservator services.
As baby boomers age, there is an exponential increase in the number of senior care agencies opening across the United States to reach the demand for senior caregivers. According to Caregiverlist.com, 77 senior care agencies have opened in Seattle ALONE since 2008.
SENIOR CARE INDUSTRY SIZE: There are nearly 11,000 senior care agencies in the United States: 1,000 new agencies opened in 2012 alone!
SENIOR CAREGIVER INDUSTRY GROWTH SINCE 2008*:
40% growth in senior care agencies across the United States
Nearly 4,000 senior home care agencies have opened
10 new franchise corporations began selling territories to new franchisees
1258 senior home care franchise locations opened
2,000+ independently owned/corporate locations opened
10,474+ senior home care agencies in operation nationwide
*Source: From Caregiverlist.com subscribers and senior care franchise corporations
We are experiencing an exploding growth of providers-many of them with little experience or credentials (other than "I helped take care of my aging mother")-with nearly 80 million aging baby boomers with parents in their 80's and 90's that's alot of "qualified" providers).
Naive "elderpreneurs"are often blinded by statistics such as "More than 65 million people, 29% of the U.S. population, provide care for a chronically ill, disabled or aged family member or friend during any given year and spend an average of 20 hours per week providing care for their loved one." http://www.nfcacares.org/who_are_family_caregivers/care_giving_statstics.cfm
That is one hell of a potential customer base. But if their revenue model is based on elders and/or caregivers that must pay for services from their private funds, you can't follow that old bromide about starting a successful business that says "Find a need and fill it".
The problem is that "need" doesn't pay the bills. "Demand" does.
Just because close to 30 percent of American families need caregiver services and support, only a very small percentage of those folks can afford to purchase these services from providers using fee based models.
According to the most recent(2010) data from the census bureau the top-earning 20 percent of Americans — those making more than $100,000 each year — received 49.4 percent of all income generated in the U.S.
At the top, the wealthiest 5 percent of Americans, who earn more than $180,000, added slightly to their annual incomes in 2010, census data show. Families at the $50,000 median level slipped lower. Source: http://www.census.gov – September 28, 2010
According to the "Long-term Care Cost Study" funded by insurance giant Genworth "Home care rates have remained flat in part because of increased competition. If a person needs only 6 hours per day of care to stay at home the annual cost is about $41,000." www.genworth.com/.../long_term_care/long_term_care/cost_of_care.html
A person needing round the clock care at home due to the limitations caused by Alzheimer's disease, Parkinson's disease and stroke. Will need $73,000 at $200 per day and $109,000 at $300 per day to pay for just 1 year of care in 2010.
It's my sense that the private pay eldercare services market is becoming overcrowded.
I think that the fact that barely 10 percent of the "Need" can afford to buy the service means that new models of pricing and service delivery have to be created to serve more of that need.
The problem is that "Need" doesn't pay the bills. "Demand" does.
Eldercare professionals can now add a predictable new revenue stream to their business without incurring expensive start up costs. A program that will also increase the visibility of your agency or business and generate an increased volume of referrals generated from the program.
"Elder Life Planning for Organizations" allows your company or agency to provide services to a much larger base of family caregivers who otherwise would not be able to afford your fee-based services.
The program is customized for each agency according to their expressed needs and preferences. From a "live" nationwide, toll-free Caregiver Support Center, staffed with experienced eldercare professionals, to evolving, stateof the art, internet based content and features. From on- site "Caring for Your Aging Parents" educational programs to professionally designed and customized pamphlets and PDF’s, Power Point, audio and video content, your eldercare enterprise can expand the information much needed by caregivers, including elder mental health issues, specialized housing issues, eligibility for publicly funded programs, opportunities to participate in the latest clinical trials that are trying to find more effective treatments for Alzheimer’s disease, Parkinson’s, MS, ALS, and other diseases that make adults dependent on others for help with their basic daily needs. Information and referral to specialists on financing the costs of long-term care, as well as experts who specialize in estate planning and elder legal issues anywhere in the U.S are included in the program.
The Elder Life Planning for Organizations program is now available to both non-profit and for-profit eldercare service providers in all 50 states.
You can offer a fully functional program customized with your brand in less than 60 days.
For information and support to help you integrate the Elder Life Planning for Organizations
program into your existing mix of eldercare services call us now at 1-800-375-0595 or request more information at firstname.lastname@example.org
Informed Eldercare Decisions,Inc manages several nationwide caregiver support programs including the "Elder Life Planning for Organizations" (ELPO), program which provides a comprehensive, nationwide caregiver support service that includes a national network of experienced professionals who deal with a wide range caregiving issues.
ELPO makes it possible for local agencies with limited program development budgets to generate new business from companies and organizations including, community banks, credit unions,health care systems,churches and faith based organizations labor unions, and other membership associations, to offer low cost caregiver support to their members, patients and depositors.
You can learn more about these programs at:
We have also developed a nationwide "Clinical Trial Awareness and Supportive Services Program" especially for trials related to diseases of aging.
Using a nationwide collaborative network of elder services providers this program provides information, education and referral services for subjects and their caregivers.
Providing caregiver support services to trial participants and family caregivers also improves the retention rate of trial participants.
You can learn more about the "Clinical Trial Awareness and Supportive Services Program" at http://clinicaltrialsubjects.net/
Informed Eldercare Decisions, Inc.• 450 Washington St.
Dedham, MA 02026
(781) 461-9637 •
toll-free (800) 375-0595 •
Informed Eldercare Decisions, Inc., is a private company dedicated to helping family caregivers make the best care choices for aging parents and relatives with long-term care needs.
Copyright © 2010- 2012 Informed Eldercare Decisions Inc. All rights reserved.
Partnering with Community Banks and Credit Unions in Your Eldercare Services Market Area
Depositors Age 55 and over own 80 percent of Deposits in Community Banksand Credit Unions. Local Financial Institutions Can Become a Leading Resource for Elders and Caregivers in their Community.
By providing Elder Life Planning services, a bank, can build closer relationships with maturing multi-generational families (aging baby boomers and seniors) that represent the lion’s share of deposits in most banks. Banks who pay attention to these critical customer segments will not only preserve their customer base but will see a substantial increase in attractive new depositors resulting in improved profitability. In fact, the rapidly shifting financial services marketplace is likely to penalize those banks that are not well positioned to address a broad range of planning issues faced by the bank’s maturing depositors.
The community bank should be seen as a leader in their market area in the fight against elder financial abuse, a growing problem that the Wall Street Journal has called "The Crime of the 21st Century".
A Power Point presentation providing a brief overview of the program and why it's a natural fit with the marketing efforts of financial institutions that have strong ties to the local community can be found on the home page at:
Eldercare Providers Expand Your Services Now to Organizations in Your Community
Employers & Chambers of Commerce, Churches & Faith Based Organizations, Community Banks and Credit Unions & Labor Unions
Contact us at info@elderlifeplanning to receive a detailed information kit on how to add a predictable new revenue stream to your eldercare agency or business without incurring expensive start up costs. The program will also increase the visibility of your agency or business and generate an increased volume of referrals generated from the program.
ELPO also allows your company or agency to provide services to a much larger base of family caregivers who otherwise would not be able to afford your fee-based services.
The program is customized for each agency according to their expressed needs and preferences. Professionally designed pamphlets, slide presentations, videos and other marketing materials let you expand the information much needed by caregivers.
Stressed Baby Boomers Miss Work To Care For Family Members
By MATTHEW STURDEVANT
The Hartford Courant April 23, 2010
Baby boomers are getting stressed out by caring for an ill or injured parent or other family member while balancing a full-time job, and as a result they're missing work themselves, according to a new survey by The Hartford and a major provider of employee-assistance programs.
"Our research found a troubling trend of baby boomer caregivers being pushed to their limits," said Barbara Campbell, regional vice president of the Group Benefits Division at The Hartford Financial Services Group.
The survey of 862 people born between 1946 and 1964 found that a majority of boomers are stressed out about caring for a child, parent or spouse. They're also worried about how their job is affected by caring for someone at home.
More than half of boomers 55 and older and 68 percent of younger boomers, 45 to 54, say they have missed work or left work early in the past six months because of responsibilities as a caregiver.
Additionally, boomers take more leave due to their own illness — of which stress is a contributing factor — than any other age group, according to a separate study of 91,000 workers at 171 businesses that contract with The Hartford for employee-benefits packages.
Campbell suggests that employers can help relieve pressure felt by boomers who are caregivers.
"We hope to raise awareness among employers about this risk to their employees' health and productivity because they play a key role in bringing workers' lives back into balance," Campbell said.