Business Opportunities · Business Trends

Senior Care

Consumer, Business and Franchise Trends

The growth of the baby boom population will be responsible to change the methods by which care and services are provided for seniors. The oldest baby boomers will reach the age of retirement and become eligible for social security in the year 2008. According to projections established by the U.S. Census Bureau, the U.S. population of seniors, aged 65 and over, will double between the years 2000 and 2030. The growth in the senior population will change the composition of families and households as well the methods by which healthcare is provided. Advances in medicine and health care, have increased life expectancy and it is expected that seniors will live longer than in previous years. As such, the demand for senior care products and services will create numerous opportunities for senior care businesses and their franchises.

The Consumer: Baby boomers will soon become the nation's population of seniors, comprised of some 86,706 members by the year 2050, according to Census projections. They will account for more than 20% of the total US population, more than doubling the number of seniors that existed in 1950. Table 1 shows the growth in seniors from 1900 through 2050.

Table 1: Percent of Population Aged 65 and Over

The living arrangement of families is expected to shift as more seniors and senior couples seek, and are capable to achieve, independence from their families. Table 2 shows how seniors and senior couples have transitioned from living with relatives, over the five-year period, 1998 through 2003.

Table 2: Living Arrangements of Seniors

The number of seniors suffering from chronic conditions will fluctuate, dependent upon the condition as shown in Table 3. Whether or not the percentages represent an increase or decrease, we know that the population of seniors will continue to increase. The data suggests that there will be a constant need for a variety of health professionals and health services to support the growing population of chronically ill seniors.

Table 3: Seniors with Chronic Conditions

The number of seniors, with disabilities, will increase as the boomers age. The Centers for Medicare and Medicaid Services report that the number of seniors, with disabilities and receiving Medicare, increased from 1984 to 1999, as shown in Table 4. The table shows that, percentage-wise, the number of seniors who suffer chronic disabilities is decreasing. However, the 24.5% of seniors that were disabled in 1984 represents about 6,852 persons while the 19.7%, shown for 1999, represents about 6,788 persons. The numbers of people is not significantly different-less than 70. The data indicates that there will be a constant need for care of disabled seniors.

Table 4: Seniors with Disabilities

Senior Care Business Trends

The demand for senior care services is expected to grow, inline with the growth of seniors. As seniors seek independent lifestyles and assistance in carrying out their daily activities, the demand for senior care products and services will increase. As science, medicine and technology continue to inspire the development of better equipment, devices and medicines, the market for senior care products and services is without bounds. According to data compiled by the U.S. Congressional Budget Office (CBO), there has been a shift from institutional care to home and community based care. Medicare expenditures for home health care grew 15% from 1992 to 2004, while spending for institutional care grew less than 5% during that same period. A series of factors are responsible to diminish the attractiveness of institutional care for seniors and this method of care is often sought as a last resort.

The CBO also indicates a decrease in family size from 3.8 members to 3.1 members during the period, 1940 through 2000 and projects a decrease to 2.8 members by 2040. The trend towards smaller family sizes will reduce the number of adult children, available to care for seniors, thus creating a growing population of independence-seeking seniors, in need of care and assistance.

Senior Care Franchise Trends

A number of senior care franchises have developed successful methods of addressing senior care, which have provided seniors with the sense of independence that is so often sought. Home Instead Senior Care is a top ranked senior care franchise, which grew from a single Mid-western office to a network of more than 600 independent franchises, in six countries, within the past 10 years. The company's statement, "Saying good-bye to familiar surroundings and the comfort and security of home, isn't always necessary", indicates that the success of senior care franchising involves providing seniors with independence rather than institutionalism. The Home Instead franchise, like many other senior care franchises, provides non-medical senior care to assist seniors in enhancing their quality of life.

Entrepreneur's annual Franchise 500® ranks the top 500 franchises based on numerous factors, to include financial strength and ability as well as growth rate and size. Table 5 shows the senior care franchises included in that listing. The table also lists franchises included in the Franchise Times 2004 Top 200, which ranks franchises based on worldwide sales. This listing included only two senior care franchises. They do include two senior care franchises in their FAST 55 listing, which lists those 55 franchises that started in the last five years and realized the fastest growth.

Table 5: Franchise Rankings

All of the listed franchises provide care to seniors in their homes or living facilities. There is a wealth of other franchises, which provide support and products to complement the services of the listed senior care franchises.