Franchises in the Health Care Industry
The healthcare industry can be a secure investment opportunity as the demand is more of a need rather than a want in the U.S. population. Over 96% of the U.S. population over the age of 75 has a chronic disease, and needs additional support by healthcare providers. Senior Care Franchises Many seniors now prefer living at home rather than transitioning to a traditional nursing home, but will require extra care from home senior care. Businesses in the home senior care industry have grown over 4% per year since 2011.
Different types of businesses in the healthcare space include but are not limited to urgent care centers, hospice, and medical staffing. The healthcare industry will continue to grow as baby boomers enter the maturing age. Senior citizens are the fastest growing population segment in the U.S. The services provided can vary between specialized nursing care, medical staffing, living assistance, and more.
Urgent Care Franchises
Urgent care services have also grown as it is more convenient for patients who cannot wait and need immediate care, especially as there has been a shortage of primary care physicians. There will also be an increasing demand for urgent care centers as more people will be insured due to healthcare reform. According to IBIS World, the total revenue for urgent care centers in 2019 was $28 billion.
Franchises for Medical Staffing
40Medical staffing has also become a growing subcategory in the healthcare industry. According to the World Health Organization, there was a shortage of 7.2 million healthcare workers in 2013, and is only expected to grow.
Health Care Franchise Industry Cost and Analysis
At Visa Franchise, we have reviewed and analyzed over 2,900 businesses and franchises. For the businesses we have studied in the healthcare space, we have seen a range of investment amounts that can start at $2,000 and can go all the way up to $1,964,000. For these businesses, the average royalty fee is around 6.4% of the gross revenue, and the average marketing fee is 2.4%. When conducting the SBA analysis for the 7(a) loans disbursed from 1991 to 2019, franchises in the healthcare industry had a paid in full rate of 40.1% and a charged off rate of 5.5%.