Home Health Care businesses are well positioned for continued growth as a result of many factors. Aging baby boomers have caused a spike in demand for home health care services, and with the risks of Covid-19, more people are opting to live at home versus a facility with increased risk from the virus.
There are approximately 75 million Americans categorized as baby boomers and every year for the next 20 years, approximately three million will retire. With the “great resignation,” the pace of retirement accelerated during the pandemic as baby boomers and those in younger generations opted for retirement. The impact to America’s health care systems as this large population ages cannot be overstated. Additionally, this presents a huge market opportunity for home healthcare businesses as Americans are living longer and many of the health care services they will need can be delivered in-home and more cost effectively than previous ‘traditional’ ways.
According to the IBISWorld Industry Report on Home Care Providers in the United States, this sector is among the fastest growing healthcare industries in the United States. This same report predicts home care providers will be well-positioned to be viable competitors to hospitals because home care saves patients billions of dollars annually by treating them in their own homes instead of hospitals. Additionally, hospitals are under pressure to lower patient readmission rates, the resulting referral of more patients to home health care agencies and home rehabilitation services is fueling the growth.
Home Healthcare Businesses and the Opportunity
With baby boomers aging, the demand for health care will significantly increase and as the IBIS report indicates, home health care services are predicted to be the fastest growing sector in the healthcare industry.
Whether you are thinking of selling or interested in buying, BayState Business Brokers has the expertise, market knowledge and proven process to help you reach your goals. We generally find home health care businesses fall into one of the following three categories:
- Businesses offering companionship and safety: a growing sector are businesses offering services for safety and companionship including, but not limited to, running errands, driving and accompanying individuals to their appointments, grocery shopping, preparing meals, offering companionship and assisting with daily hygiene. Such businesses enable a growing population who want some level of independence and seek to remain in their home. Such businesses can target a larger talent pool given the services provided.
- Skilled home healthcare businesses: this large and broad sector includes a wide variety of skilled health care services historically provided in a facility, but now offered as in-home services. From skilled nursing, physical therapy, speech therapy, occupational therapy to behavioral health, businesses providing such services are in high demand to support the increasing need. There is a great market opportunity for businesses with models that offer skilled home care — whether it is 24×7 care or select hours for bathing and administering medication. Such businesses provide in demand benefits of both convenience and safety, which rose in importance as a result of the pandemic. While labor is highly skilled, business owners can emphasize flexibility to attract and retain talent.
- Home hospice businesses: this highly specialized segment offers at home hospice services providing skilled end of life care in the comfort of one’s home. As the population ages, it is expected businesses offering this service will increase in demand and will strategically complement the skilled home health care sector whether as a separate offering within one business or positioned as a referral-based business to the above skilled at-home nursing businesses.
The Opportunity in the Greater Boston Area
As both our experience and industry research highlights, the economic outlook for this segment looks promising for many years to come. In the Greater Boston area in particular, home healthcare businesses are especially well-positioned given their close proximity to leading research hospitals that serve as a referral source, a large and highly educated population to attract and retain a quality workforce and a large aging population to care for. For more information about this growing sector and our experienced business brokers in this sector, click here.
The Opportunity For Business Owners
If you own a business in this segment and are thinking about selling, now is a great time to capitalize on the market opportunity. The market is growing, the greater Boston area is well-positioned to fuel sustained growth and there is increased demand from buyers looking for businesses like yours. If you are contemplating selling your home healthcare business, let’s talk now to help you benefit from these highly favorable market conditions.
The Opportunity for Buyers
If you are interested in expanding your portfolio, acquiring a business for a new career or to strategically take advantage of this market opportunity, there are many types of home healthcare businesses to consider.
Our business brokers have the expertise and experience to help strategic buyers and individual buyers identify businesses in this attractive sector to expand geographically, grow one’s portfolio or acquire a promising business to lead as a new career opportunity. Unlike other industries, strong management and leadership skills prove essential in buying and running a business in this sector while having experience in the health care sector is less critical than other industries.
There is great opportunity to enter this growing sector, strategically diversify or expand into one or many of these subsegments to take advantage of its growth and the needs of the aging American population.
Experienced and Proven Business Brokers
We’re here to help you whether you are interested in selling or buying a home healthcare business. BayState Business Brokers has brokered the sale of many home healthcare-related businesses, including both independent home health businesses and franchises. To read a recent case study of brokering the sale of an Amada Senior Care Franchise to an industry buyer, click here.
Please contact us to discuss your goals related to home health businesses, whether you are looking to buy or sell. We look forward to bridging the way.