Business Booming for Home-Care Franchises

As baby boomers reach retirement age, home-care franchises are seeing booming business.

Visiting Angels, a nonmedical home-care agency, spotted the aging-boomer trend 10 years ago when the economy was tightening and costly nursing homes began losing favor.

More recently, people's reservations about nursing homes were brought into the spotlight by the Carlyle Group's protested plan to buy Manor Care Inc.(HCR Quote).

"More seniors are choosing to stay at home," says Peter Notarstefano, director of home and community based services at the American Association of Homes and Services for the Aging (AAHSA). The number of older adults in nursing homes declined from 4.2% in 1985 to 3.6% in 2004, he says.

Heart and Profit

"The days have passed when adult children stay in the same community as their parents," says Connie Hill, 48, a Visiting Angels franchisee. Her caregivers -- also referred to as home health aides -- sub for absent family members -- coordinating doctor's appointments, giving pill reminders or picking up groceries.

Hill chose Visiting Angels for its cute name and strong market potential. "We're here to serve but also to make money," she says. "More businesses popping up recognize that [senior care] is a wonderful business model."