The rise of home care impacts the senior living industry insofar as potential new residents are diverted from facilities because they hire home care providers to receive home-based care.

The top 16 franchised home care providers produced $7 billion in revenue in 2017 of which an estimated $2.5 $3 billion occurred on a senior living campus. CCAH services not only offer an alternative to home care but also bring the competitive advantage of facilitating the transition to facility care when it is appropriate and positions the community towards senior services.

When expanding into the home care market, senior living facilities offer a complementary but different service to potential clients. A model of continuing care at home aligns with the growing social preferences of aging in place by permitting new clients to engage the senior living provider’s services without relocating to a facility. At the same time, new clients who are receiving home care services establish an ongoing relationship with the senior living provider so that if and when facility-based care becomes necessary, relocation to the facility is an easy and expedited decision. Integration of home care and senior living services make it possible for caregivers to seamlessly follow the client from the home to the facility, enabling a smooth care transition. Administrative office functions can also be efficiently transferred when the home care client becomes a resident.

Senior living providers are accustomed to the major capital expenditures required to build new facilities when they desire to serve more people. In a welcome shift, an entrance into home care allows senior living providers to expand services without incurring substantial financial outlays. Moreover, home care does not involve the same level of ongoing expenditures found in fixed, facility-based operating costs; home care costs are more manageable because the largest expense, labor, varies in direct proportion to customer demand for service.

With respect to labor, senior living facilities already employ registered nurses and certified nursing assistants to deliver care to their residents. Because a comparable workforce is required to administer a home care agency, senior living facilities can utilize many of their existing people and human resource processes to expand staffing into the realm of home care.

By reducing the diversion of potential residents who might never engage with senior living providers because they contracted home care, the funnel of new potential customers increases with the offering of continuing care at home.