Established Home Care Agency Serving Medicaid and Private Duty

Springfield, MO (Greene County)

Established Home Care Agency Serving Medicaid and Private Duty
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Asking Price: $69,000

Cash Flow: $73,000

Gross Revenue: $256,600

EBITDA: $73,000

FF&E: N/A

Inventory: N/A

Rent: $275 /Month

Established: 1997

Established Home Care Agency Serving Medicaid and Private Duty

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Business Description

Large Industry Growth Expected!

US homecare is a $37 billion industry. Broadly defined, it consists of medical caregivers (i.e. nurses, physical therapists) and non-medical caregivers (i.e. companions, homemakers, home health aides, certified nurse assistants) that provide care or companionship to geriatric, pediatric and mentally/physically impaired patients/clients at their primary residence.

There are two primary “demand drivers” that make homecare among the fastest growing American industries. The first is the “graying of America.” Every day, 10,000 US citizens retire. Today’s US senior population (age 65+) consists of more than 40 million people and is projected to double during the next 40 years.

In the next two decades alone, as the 78 million baby boomers born between 1946 and 1964 reach their golden years, the senior population is expected to swell 79% to 71.5 million. The “high needs” population segment consisting of seniors age 85 and over is expected to more than triple between now and 2050.

With improved life expectancy and the desire to stay in their homes for as long as practical, today’s seniors and their loved ones strongly prefer homecare to institutional settings such as independent living facilities and nursing homes.

Secondly, homecare is a considerably lower cost alternative to institutional care. The US healthcare system is faced with considerable issues including accessibility and affordability. Homecare is a key solution for both.

Home care is a referral-intensive industry with client inquiries coming in large part from sources such as hospice case managers, hospital discharge groups, private physicians, home-health firms and Alzheimer/dementia support groups to name a few.

As such, established players with excellent service delivery reputations enjoy a considerable “first mover advantage.” This company is one such player. This market consists primarily of seniors or their families that “self-pay” for companionship and/or personal care and secondarily of seniors, veterans and others that qualify for certain government funded programs like Medicaid.

The non-medical homecare industry, also often referred to as the private duty industry, is widely viewed as a high-growth, recession resistant market having more than doubled in the last eight years and projected to do so again in the next eight years.

Detailed Information

Location:
Springfield, MO
Inventory:
Included in asking price
Real Estate:
Leased
Building SF:
480
Lease Expiration:
N/A
Employees:
18
Facilities:
The business can be run from your home to save rent and utility expense. Included in sale: Desks, printers, copier/fax, badge printers, tables, chairs, computers, projectors, caregiver training materials, file cabinets. (Home Based)
Competition:
Several other agencies are in the Springfield area, but the need for service is always growing. We are also a preferred vendor for a large county contract. Integrity and Phoenix Home Care are the largest Agencies in the area.
Growth & Expansion:
We have relied on contract referrals and have not advertised much at all. The new owner could start an advertising campaign and start to grow private pay or Medicaid right away. There is also a big opportunity to sign up for the Medicaid Reassessment and the Consumer Directed Services programs through Medicaid to quickly increase revenue. In addition, we currently service a VA client through Fee Basis program, it would be easy to sign up for a VA contract and service more VA clients. The Medicaid contract can be used anywhere in MO for other locations.
Support & Training:
2 months of remote support is available remotely as needed. If we are required to come on site then travel expense would need to be paid. The business has a general manager that makes $32,240/year. If the new owner runs the business on their own and doesn't need the general manager then they can make approx $73k/year.
Reason for Selling:
Relocating.
Home-Based:
This business is Home-Based
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