Health care is one of the largest and fastest growing industries in the US today. With the implementation of the Affordable Care Act (ACA), the demand for health services will dramatically increase. Health Care Franchising companies are leading the charge to meet that growing demand.
Since 1990 the cost of providing health care has almost tripled, but quality of care has not increased. The aim behind the ACA was to provide more affordable health care by lowering the premiums for higher risk and low-income individuals; however, it does little to curb the real costs to hospitals and patients. This is one of the major benefits of the health care franchises; it provides the business more control over variable costs like labor and equipment.
Another major reason for health care being so expensive is the result of large amounts of individuals going to the emergency room for non-emergencies. Urgent care centers, like Concentra, are a much more affordable alternative to emergency rooms for treating most symptoms. Below is a graphic that compares the costs of using an urgent care center versus emergency rooms:
For a many symptoms like those listed above where an individual would normally go to an emergency room, they can go to an urgent care center for fractions of a dollar and get comparable service and treatment.
Home health businesses are another raidly growing franchise model. These companies specialize in providing health and medical services to the individuals in their home, particularly useful for the nation’s seniors. A rising population older than 60, expected to surpass 3 billion people by the year 2050, is a large reason for the increase in demand for these home health services. Of the Forbes best Franchises to own right now, 3 of the top 10 are home health brands (http://www.forbes.com/sites/caroltice/2014/05/27/best-franchises-home-healthcare-is-hot/).
Franchise businesses have also become an attractive option for doctors. Many of these franchises have superior working conditions than those of hospitals. Less paperwork, more efficient processes, better hours, and competitive wages make them a great alternative for health care professionals.
Patients are beginning to prefer health care franchises as well. The average wait time for urgent care centers is much shorter than at the ER. Many businesses, like AFC/Doctors Express, claim that they can get customers in and out in less than an hour. Package this with lower costs than traditional hospitals—you have a business model built to succeed.
In the race to make health care more accessible and more affordable, franchise businesses are leading the way. As the health care industry continues to adjust to keep up with the need for more services, these business models look to be the future of health care in America.