Home care executives are expecting a few separate things to shake up the market in the coming years.
Among those are an increase in franchising, more private equity involvement and innovation to keep pace with higher costs, Home Health Care News reports.
Consolidation in home care has lagged compared to home health care. One of the reasons why is that PE involvement in personal home care has also lagged.
“There are a lot of competitors who can enter [home care] and then there’s the ability for franchisees to expand and take share in the market,” Matt Sears, vice president of Bain Capital Double Impact, said. “That makes it difficult for owned operations to drive scale. I also think how local the growth engine is in home care [makes it difficult for PE involvement]. You’re dealing with individuals who are making that buying decision and you’re recruiting in local markets. That forces a lot of separate market decision making and it’s hard to consolidate that into a corporate operation.” Read more.
