This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Successful Senior Care Franchises

NEW YORK ( MainStreet) -- It used to be that for elderly people who did not have family to care for them, the only option was living in a nursing home once they were unable to live independently.

No longer. Successful franchises are cropping up as entrepreneurs react to a growing demographic: people living longer who are not necessarily ill, but do need help with basic living functions such as cooking, cleaning, taking medication and personal hygiene. The entrepreneurs' work enables senior adults to stay in their homes longer.

The need for senior care services and products (medical and nonmedical) will become even more pressing in years to come. Not only are baby boomers' parents living longer; as they age into their own sunset years, they too will need these services. And this age group has money to spend.

According to census data compiled by Home Instead Senior Care, an estimated 36.8 million people, or 12.4% of the U.S. population, are 65 and older, a figure expected to double by 2026. Those older than 85 are projected to roughly double from 4.7 million in 2003 to 9.6 million in 2030.

In-home care is also seen by some as a way to reduce exponentially rising costs associated with health care. Private home care is more cost effective than nursing homes or assisted-living facilities, according to the National Private Duty Association, a trade organization for private medical and nonmedical home care companies.

According to data collected by the NPDA:

  • The average annual cost of one nursing home resident is $69,715.
  • The average annual cost of one assisted-living facility resident is $36,372.
  • In contrast, 20 hours a week of home care services costs about $18,000.

"The underlying challenge all the policymakers are trying to figure out is we've got all this aging population that will need care that the government will have to pay for. The challenge is there's really not an effective way of reducing the cost of the care," says Right at Home's founder and CEO, Allen Hager.

"You have to find a way to take care of people at less cost. A service like Right at Home, where we send caregivers for the basic activities -- if that's not neglected then they have a lot better chance of reducing the amount of time they have in the hospital," Hager says. "We know the big trend will be more in-home care services."

Right now, some 90% of elder services are out-of-pocket expenses to the client or their family. As consumers get more comfortable with long-term care insurance policies and insurance companies get more comfortable with approving in-home care expenses, that dynamic will change, experts say.

Here are five in-home senior care franchises doing extremely well:

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs