The home care industry is growing very rapidly in the US and across the globe. According to recent data compiled from several sources, the home care industry is valued at nearly $120 billion a year, which is up more than 20% from 2020.
The primary drivers for this growth are the aging of the global population and extended average life expectancy. Needless to say, there has been additional growth in the industry’s popularity due to mistakes made by traditional health and senior care facilities over the last several years.
Now more than ever, families are more inclined to look for assisted living services that allow people in need to receive care, gracefully, at home.
Starting a Business in the Home Care Industry
When it comes to the home care industry, there are two main business models and it can often be confusing to understand the differences between the two. First, there is “non-medical home care”; also known as companion care and then, there is traditional home health care.
So, what’s the difference? In this article, we will explain the difference between the two to help anyone who is considering investing in a home care franchise, or thinking about starting a home care business decide which one is right for them.
Companion Care vs Health Care
Home health care is a more traditional model where patients receive medical care in their homes from a healthcare professional. Companion care, on the other hand, is a form of non-medical home care assistance that focuses on providing companionship and assistance with activities of daily living to seniors or people with disabilities, and more.
Since this resource focuses on helping people who are most likely looking to start their own home care, elder care, or home health care business, Let’s take a closer look at each of these models to see which one is right for you!
What Is Companion Care?
As the name suggests, companion care is all about providing companionship to those who need it. This type of non-medical home care assistance can be extremely beneficial for seniors or people with disabilities who live alone and may feel isolated or lonely. In most cases, elder persons simply want to age in the comfort of their own home, with dignity.
In addition to providing companionship, non-medical caregivers can typically help with things like light housekeeping, preparing meals, running errands, providing transportation to doctor’s appointments, recovering from surgery, and more.
Non-medical caregivers can also provide valuable services like monitoring medication intake or helping with physical therapy exercises that have been prescribed by a physician.
Companion care goes by several other names, such as:
- Custodial care
- Homemaker services
- Personal care
- Non-clinical care
- Non-medical home care
- Unskilled care
Advantages of the Companion Care Business Model
Because companion care is considered a non-medical service, this business model has some significant advantages over running a home health care business.
In general, the sector is less regulated. If you are starting with an existing reputable franchise, there is no experience required, and because you can operate the business from virtually anywhere, start-up costs and overhead are much lower, which means a better overall return on investment.
What Is Home Health Care?
Home health care is a more traditional model where patients receive medical care in their homes from a healthcare professional. Home health care also goes by other names, such as clinical home care, hospice care, skilled care, and End-of-life care.
Home health care services are typically provided by licensed practical nurses (LPNs), registered nurses (RNs), or other medical professionals such as physical therapists, occupational therapists, and speech-language pathologists.
In some cases, non-medical caregivers may also provide home health care services, but they would need to be supervised by a licensed medical professional.
Advantages of the Home Health Care Business Model
The main advantage of starting a home health care business is that you can provide a wider range of services than non-medical home care businesses.
Because home health care businesses are considered medical businesses, you will be able to bill insurance companies for the services you provide. This can be a significant source of revenue, as many seniors have Medicare or private health insurance that will cover home health care services.
Which Business Model is Right for You?
Now that you know the difference between companion care and home health care, it’s time to decide which business model is right for you.
If you are a first-time entrepreneur or looking for a less regulated business with lower start-up costs and overhead, then non-medical home care, or companion care, maybe the right choice for you.
If you have a background in the medical field or are looking to provide a wider range of services, then starting a home health care business may be the better option.
No matter which model you choose, both non-medical home care and home health care businesses can be extremely rewarding, both personally and financially.
If you’d like to learn more about companion care franchise opportunities with Briggs Home Care, then we invite you to contact us and talk to a member of our team about your goals, and available territories.