Perhaps you’ve been wondering if a long-term care related business makes sense in today’s economy and what the process entails. This short blog series is intended to help new entrepreneurs understand a little more about the licensure process with the Agency for Healthcare Administration (AHCA) in establishing your Florida long-term care business.
First, let’s address the demographic factors that favor these businesses. The demographic changes affecting our country are inescapable and our healthcare system is feeling the strain. The CDC reports:
- 13% of the population is over the age of 65 and will increase to 19% by 2030;
- In the same time period, the number of people over the age of 85 will grow from 5.8 million to 8.7 million;
As legislators attempt to stretch available dollars to cover the costs of caring for our aging population, there is more news:
- About 80% of older adults have one chronic condition, and 50% have at least two. Infectious diseases (such as influenza and pneumococcal disease) and injuries also take a disproportionate toll on older adults. (CDC)
- 45.3% of adults have two or more of nine selected chronic conditions, which include heart disease, hypertension, diabetes and cancer; these conditions are among the top five contributors for home health care utilization by Medicare beneficiaries. (CDC)
- The National Academy on an Aging Society projects that by 2040, the number of people in the U.S. with chronic conditions will increase by 50%.
Our aging population increasingly requires two types of care: skilled care, such as nursing or rehabilitative therapy, and personal care which entails assistance with activities of daily living (ADLs) and instrumental activities of daily living (IADLs). These acronyms represent activities we take for granted: bathing and grooming, preparing meals and eating, using the bathroom or the telephone, and ambulating independently and safely in and out of the home. Skilled care is provided in a hospital or nursing facility, but can also be carried out by licensed professionals in the patient’s home at a fraction of the cost. The National Association for Home Care and Hospice (NAHC) adds to the case for home care by pointing out the 4000% cost difference between one hospital day and a home health care visit.
Click here to read about the different types of long-term care business options to find one that may be right for you.