Do you want to start a nursing home business by buying a franchise? If YES, here is the best nursing home franchise opportunity for sale and their cost. Nursing homes are homes that provide assisted living and help to senior citizens and the disabled in a facility that is away from their own home.
Nursing homes, also known as old people’s homes, care homes, rest homes, and convalescent homes, provide residential care for elderly or disabled people, and this care often includes round-the-clock nursing care. A nursing home is a place for people who do not need to be in a hospital but cannot be cared for at home.
Globally, it’s expected that the population aged 65 and older will be 1.5 billion by 2050, up from about 563 million now. By 2040, it’s expected the number of senior aged people in the U.S. will number 81.2 million.
But as of today, there has been a rapid decline of nursing homes because of a lot of factors, chief of them being that there are more acceptable alternatives for in-home senior care. According the U.S. Census, only about three percent of senior citizens live in nursing homes. This is in fact an abysmal figure for the industry which has already started witnessing a lot of closures.
The most recent quarterly survey from the National Investment Center for Seniors Housing and Care, reported that nearly one nursing home bed in five now goes unused. In addition, the National Center for Health Statistics reported that more than a third of nursing home beds were empty in some states, including Illinois, Iowa, Nebraska, Oklahoma and Utah, with Texas getting ready to join in.
Nationally, it is estimated that 200 to 300 nursing homes close each year, and the number of residents keeps shrinking too, from 1.48 million in 2000 to 1.36 million in 2015, according to federal data.
At the same time, nursing homes face stiffening competition as they seem to be selling products no one wants to buy. This is because there are a lot of alternatives for senior care in the country and it includes in-home care, assisted living, adult day care centers, Life Care retirement communities, PACE Programs etc.
A demonstration program called ‘Money Follows the Person’ has moved more than 75,000 residents out of nursing homes and back into community settings via in-home care.
Another worrisome trend in the nursing homes industry is the slow decline in the number of skilled nursing homes across the country over the last decade. For example, “from 2000 to 2009, the total number of nursing homes in the U.S. decreased by 9%. Additionally, from 2007 to 2011, new construction of nursing-home units decreased by 33%,” according to CNBC. This downward trend is being predicted to continue in the future.
For this reason, there are not a lot of franchises in the nursing home industry as businesses are struggling to stay open and are not thinking of expanding in a declining market.
Just one franchise was found for nursing homes in the United States, so this may not be the right business for someone who is profit oriented. This business can of course be started for other altruistic reasons.
Best Nursing Home Business Franchise Opportunities for Sale and Their Cost
BeeHive Homes is an assisted living facility that caters to the aged and the disabled. The business has been operational for the past 30 years, and have now expanded to over 180 homes across 20 states.
As one of their franchisees, you will benefit from their decades of experience in elderly care as you move from the initial stages of site selection through your operational training and marketing training and into the day to day operation of your own home.
- Cash Investment: $280,000
- Investment Range: $250,000 – $1,000,000
- Franchise Fees: $50,000
- Ongoing royalty payments – 5% of the home’s gross income