The U.S. population is aging, and that’s good news for many service providers, including the home healthcare industry—which is projected to grow at a breathtaking pace through 2031. According to the U.S. Bureau of Labor Statistics, employment in the sector will jump by 21%, with over 700,000 jobs added annually. That percentage is triple the average industry employment growth projected.
Here are a few specifics that help rationalize those numbers:
- The number of people over 65 will grow to 84 million by 2050, rising from 14% of the population in 2021 to 21%.
- More than two of three older Americans have multiple chronic conditions conducive to home healthcare.
- Recent studies show people referred to home healthcare plans have better outcomes and lower costs compared to inpatient care for post-acute treatment.
- Medicare covers many home health services, and since the population covered by it will be growing for many decades, the total dollar amount of home health benefits will also grow.
Home Healthcare Versus Home Care
If you’re interested in serving the care needs of the growing senior population at home—their preferred location—there are two different types of care you may choose to offer:
- Home healthcare—This is a medical necessity, with prescribed care being provided by a doctor or medical professionals. It’s often a combination of physical and occupational therapists, social workers, registered nurses and other medical home health aides providing services such as administering medication, addressing bandages and helping with exercise. Funding is primarily through Medicare and Medicaid.
- Home care—For this type of care, many employees aren’t medically certified but focus on keeping seniors safe, healthy, engaged and active while helping with day-to-day activities. Services include companionship, wellness and safety, meal preparation, housekeeping help, grocery shopping and care coordination. Funding typically comes from families and friends.
Business Loans for Acquisition and Expansion
Home healthcare business loans are appropriate for acquiring an existing home healthcare business or expanding your own operations. Funding an acquisition eliminates the need for intensive staff hiring and training so you can focus on adding immediate value via marketing, operations and physical improvements. If you already operate a home healthcare business, a business loan may be the answer to acquiring more space to accommodate your staff and business needs.
Loan amounts will typically range from $20,000 to $250,000 and have terms of five to 10 years. Requirements to be approved will vary, but in general, you must:
- Have good credit with a record of timely repaying existing debt
- Show sufficient cash flow to make loan payments
- Have a down payment of 10% to 20%
The Takeaway
If you operate a home healthcare business or are seeking to acquire one, securing financing to expand and/or ensure you have the necessary resources to be successful is a great strategy to build your business. Unlike traditional lenders like banks, whose application and approval process can be cumbersome and often end with a “no,” alternative lenders are in your corner and focused on helping you make your business dreams come true.
If you have any questions about securing a home healthcare business loan, give Clear Skies Capital a call at 800-230-9822. You may be pleasantly surprised at what you qualify for.