Private duty home care is a growing and competitive market. Growth is being driven by the fact that people are living longer and that the elderly have a strong desire to age in place. Care at the home or in the community – not nursing home care is what most Americans world prefer, according to AARP.
Consider these facts:
The average annual cost of one nursing home resident is $91,250.
(Source: Genworth Cost of Care Survey 2015)
Seniors who want to remain in their homes can often do so cost effectively with a few hours of care a week. For example, 20 hours of companionship home care a week costs approximately $1,500 a month or an average annual cost of $18,000.
(Hourly Rate Based On Home Care Association of America (HCAOA) 2015 Private Study)
The affordability of private duty home care is
another reason the industry continues to show solid growth. Consider these statistics:
In a survey recently completed by HCAOA members, 71 percent are projecting an increase in their revenues from 2013 to 2014; another 12 per-cent expect their revenues to remain stable. (Home Care Association of America 2015 Private Duty Benchmarking Study)
In another sign of the industry’s growth, 83 percent of the HCAOA members will be adding employees to their staff in the next 12 months to meet the demand for care. (Source: Home Care Association of America 2015 Private Duty Benchmarking Study)
While still an emerging industry, private duty home care providers have shown that they have staying power. Approximately 70 percent have been in business five years or more. (Source: Home Care Association of America 2015 Private Duty Benchmarking Study)
Exponential Growth Projections for the Home Care Market
The private duty homecare industry is currently one of the fastest growing sectors of the U.S. economy and will continue its rapid growth over the next several decades as our elderly population continues to grow. Here are the facts:
- In 2016, more than 10,000 people will turn 65 every day (US Census)
- The population of people 85 and older will grow from 5.3 million to nearly 21 million by 2050 (AARP)
- 80% of seniors have at least one chronic health condition, and over half of them have two
- At Least 70% of people over the age of 65 will require some form of home care support during in their lifetime (US Dept. of HHS)
- By 2025 the senior population of America will increase from 49 million to nearly 72 million
- 89% of all seniors want to age in their homes for as long as possible (US Dept. of HHS)
- The home care industry has grown 104% in the past 5 years and will continue its rapid growth over the next several decades based upon demographic data, social factors and economic realities