Home Healthcare Franchise: Home Health or Home Care?
Considering a home healthcare franchise? The home care industry can definitely provide a rewarding and lucrative opportunity. However, it’s important to find the right investment for you. Discover how ownership differs for home care and home health franchises.
So, What’s the Difference?
At first glance, it may seem like there’s no difference between a home care franchise and a home health franchise, but there certainly is. Some of the biggest variations can be found in the services offered, the staff employed, and whether or not insurance covers the care provided.
A home care franchise specializes in non-medical aid. Services may include assistance with daily living activities such as bathing, dressing, grooming, meal preparation, companionship, light housekeeping, and errands. A home healthcare franchise provides medical care through licensed professionals. This includes nursing care, physical or occupational therapy, speech therapy, wound care, and medication management.
There’s a significant difference in staffing requirements between home care and home health. Home care franchises typically employ caregivers. These individuals have received extensive training and may even be certified (depending on state regulations). However, caregivers are not licensed like physical or occupational therapists and registered nurses. Franchise candidates interested in owning a healthcare franchise would be required to staff medically licensed professionals.
Payment Options for Care
How franchises receive payment for their services will also vary between home care and home health. With no medical aid component, home care is not typically covered by most insurance policies (with the exception of long-term care insurance) and is usually paid for out of pocket. However, home health care is often paid for at least partially by Medicare, Medicaid, or private health insurance, provided the patient meets certain criteria. As you determine which opportunity is best for you, you’ll want to consider how you generate revenue. Going through insurance companies may be more labor-intensive than private payment.
How Does This Impact Ownership?
Sure, there are differences between a home care franchise and a healthcare franchise, but does that mean ownership widely differs, too? In short: yes. Different business models will lead to different responsibilities as the franchise owner.
In addition to marketing, training, and payroll tasks, a home healthcare franchise owner needs to also stay up-to-date with medical regulations to ensure compliance and work closely with medical providers and insurance companies. Since home care focuses on non-medical aid, it’s not as heavily regulated as home health care.
Plus, home care appeals to a wider audience. With the senior population wanting to age in place, having assistance around their homes will allow them to do so as long as possible. However, not all seniors need medical aid at home. Home healthcare must be prescribed by a physician, whereas home care can be employed by the patient’s family.
How to Choose Between the Two
Like most business investments, you’ll need to do a self-evaluation before deciding which franchise opportunity is the best fit for you. Some things to consider:
- Your background: If you have a medical background or experience in the healthcare industry, a home healthcare franchise may be a seamless fit. On the other hand, if your strengths are in management, marketing, and customer service, a home care franchise might suit you better.
- Investment costs: While a home health agency franchise may generate more revenue due to insurance reimbursements, it may also have higher operational costs. For instance, you’ll need to hire licensed professionals and may incur equipment costs to provide top-notch medical care.
- Regulation and compliance: If you’re not comfortable navigating the complexities of medical regulations, a home care franchise might be a better option for you.
- Market demand: Research the needs of your local community. Get an understanding as to which type of care is already available and if something different is required.
Ultimately, the best choice depends on your skills, interests, and local demand. Both options offer the opportunity to make a meaningful difference in the lives of individuals in your community. Consider a thorough market analysis to make an informed decision.
You’ll also want to conduct thorough research into each franchise brand you’re considering. Gather an understanding of the brand’s reputation, how franchisees enjoy working with the franchisor, and the type of training and support you’ll receive. Be sure to carefully review each brand’s franchise disclosure document (FDD) – it includes important information regarding their opportunity.
HomeCare Advocacy Network: A Strong Home Care Franchise Opportunity
HomeCare Advocacy Network (HCAN) is a trusted home care franchise that provides round-the-clock care for seniors. All of our franchise owners and their teams provide exemplary non-medical care services including:
- Light housekeeping
- Meal preparation
- Pet care
- Personal care (bathing, toileting, hygiene, etc.)
- Aid with daily living activities
- Appointment assistance
- Fall/injury prevention
Our franchisees are able to create customized care plans to meet the unique needs of each client. We also offer flexible schedules. Whether someone needs us 24/7 or just a few hours a week, our caregivers can accommodate.
Our home healthcare franchise cost is affordable – with estimated startup costs ranging from $116,650 to $161,000. We allow franchisees to have exclusive rights to more than one territory and we provide comprehensive, caregiver-centric training to all of our teams.
To learn more about our home care franchise, contact us today, and one of our brand representatives will get in touch with you.