5 Critical Trends Home Care Agencies Must Be Prepared For… To Avoid Losing Clients, Preserve Profits, and Attract More Clients Over The Next 12 Months
Friends in Home Care,
I’m here to share some inside scoop on a few trends that are catching on fast in the home care services industry—trends that you need to be on top of. Plus, I’ve got some fresh strategies up my sleeve on how to command better rates and pull in clients that’ll really boost your bottom line, ensuring your home care agency thrives in the years ahead.
This isn’t the kind of info to just glance over or put on the back burner. It’s crunch time—to get your team and game plan together so you’re not caught flat-footed by the shifts that are already happening, which could mean watching your clients walk away to more gung-ho competitors.
If you’re one of the go-getters in the home care biz, driven by real entrepreneurial fire and aiming for serious wealth (not just bumping up your client count and sales—though that’ll happen too with the advice I’ve got for you), then you’re going to find this especially interesting.
I’m about to lay out what I see as the five major trends shaking things up for home care agencies. We’re talking about staying one step ahead, so you don’t lose your clients to the next aggressive contender in the ring. It’s about snagging new clients right from under the noses of the old-timers and boosting your profits while you’re at it.
Basically, it’s about being the mover and shaker, not just another name on the roster. We’ve been teaching our clients with this mindset—arming them with the strategies they need to outshine and outmaneuver the competition, even those big-league agencies that are scaling up fast.
What’s coming up might sound a bit familiar—it’s stuff I’ve hinted at, but haven’t gotten into the nitty-gritty of yet. Trust me, though, these aren’t topics to just breeze through. They’re not going to be solved with a band-aid. Being aware of them is step one, kind of like knowing there’s a storm on the horizon. That knowledge is gold, but it’s what you do next—boarding up, battening down the hatches, and making a move—that makes all the difference.
I know you’ll find at least one of the points I’m about to dive into is what’s been keeping you from scaling up your agency profitably and with your sanity intact. It’s a common snag for home care agencies at every level, in every city, serving every type of client out there. Some are handling it like champs. Others… not so much. Where you land on that spectrum is up to you.
Now, let’s dive in…
The Pre-Covid World? That's History.
Pretty much every business owner I know has felt the sting in one way or another. For some, it’s been a knockout punch. We’re all well aware of the widespread damage the lockdowns caused. But it’s not been a disaster for everyone.
For some sectors, like home care services, the pandemic has actually spelled opportunity and growth.
Here’s the scoop on why being in the home care market right now is pretty sweet, but also comes with a heads-up for some brewing challenges you’d better be ready for, sooner rather than later:
Here’s a number for you:
According to the 2023 HCP Benchmarking Report by Home Care Pulse, the home care industry has experienced a median revenue increase of $52,192 in the past year, making it the highest annual increase in the last four years.
Home care is a sizzling sector, and it’s no shocker that folks are jumping on the bandwagon to grab a slice of the pie. Good for people like me and other home care vendors, but a bit of a headache for you. Why? Because newbies often try to undercut you on price, thinking they’ll lure away your clients with cheaper rates. Sure, it’s a shortsighted move, but it still means you’ve got to work harder to justify why you’re worth the extra bucks.
The demand for staffing assistance is about to go through the roof. Medium-sized senior care facilities with a handful of caregivers are waking up to the fact that outsourcing staffing beats trying to handle it all solo, especially with the current labor crunch.
Large home care agencies, who previously never touched staffing, are now regularly fielding requests for help from rehabs, nursing homes, assisted living and more—opportunities that were unheard of a decade ago. These facilities have the budget and aren’t shy about spending it. We’re talking contracts that can hit big dollars per month, with a sweet spot for long-term deals. But here’s the rub: the larger home care agencies, the ones raking in upwards of $5 million, are usually the ones landing these contracts.
Care Coordination could be your golden ticket. Adding and billing for services that you probably already handle anyway, is important. We see a lot of home care agencies adding this fee-for-service and benefiting immensely. Specializing in transition from hospital to home is a big opportunity for private pay home care agencies.
But Let's Be Clear: It's Not Just Rainbows and Butterflies...
With every chance comes a challenge. The very things fueling these opportunities are also pushing home care agencies to evolve in ways that might be uncomfortable or even daunting (like bumping up your prices to keep your earnings steady). At the tail end of this report, I’ve thrown in my two cents on what could be a rough economic patch ahead.
Here’s the deal: changes are coming, like it or not. You can sulk about it, blame the government, the economy, or whoever else is convenient. But moaning about it won’t fix a thing. What matters is what you do next. Are you going to play defense and make the most of these opportunities while they’re ripe for the taking?
Sitting on your hands now just pushes the problem further down the line. And trust me, those issues aren’t getting any smaller. It’s a whole lot smarter to get in front of it all, patch up the little leaks before you’re ankle-deep in water, scrambling to stay afloat.
If it’s any consolation, at least you’re in an industry that’s booming and offers the chance to make some serious coin over the next few years. Spare a thought for those in retail or hospitality—they’re in for a rougher ride, with fewer chances and more baggage from overheads, infrastructure, and rising interest rates.
So, if all you need on your desk is a bottle of antacids, count yourself lucky. Because compared to some, you’re sitting pretty—even if it doesn’t always feel that way.
If you’re wanting to protect what you’ve built and take it to the next level, this conversation is crucial. Consider this the beginning of something vital.
Consider this your official heads-up…
Step Up, Step Aside, or Get Stepped On
You could choose to Step Up.
Think of it as a reboot of your service menu to match the evolving demands of the market for home care services. Step up to serve clients who truly value home care and are prepared to pay for its worth. Step up and set yourself apart from the pack, crafting a unique business model that’s tough to replicate and commands top dollar.
By making these moves, you step up to a more comfortable life and better earnings for you and your family. It’s a deliberate choice. There are home care agencies who’ve taken this leap, embracing the tools and strategies handed to them, and they’re reaping the benefits. It’s something you can do too.
Or you could choose to Step Aside.
You could try to hold your ground, resisting change, pretending there’s no water trickling into your boat. You could wait for that “right moment,” or until you’re cornered, and change isn’t a choice but a necessity. Waiting until next year, thinking “I’ll handle it then,” is just inviting trouble. It’s a recipe for disaster. The pandemic already forced a lot of small home care agencies out of business. That wave isn’t over. Stick with outdated methods, and you’ll be left behind, a mere bystander to the innovators and disruptors.
Survival mode? That’s a death sentence in this industry. There are sharks out there, ready to out-hustle and out-dream you for every client in your backyard. It might sting to hear, but if you’re not willing to adapt and overhaul your sales and marketing, frankly, you don’t deserve the clients.
Then there’s the option to just Fall Over.
Throw in the towel. Settle for the bottom-feeders and scraps left behind. Accept a life of being just another commodity, with meager profits and a shrinking lifestyle. Some might pick this path voluntarily.
But is that really the legacy you’re aiming for? To be the one picking through leftovers? Surely, that’s not the extent of your dreams.
It’s easy to think “it won’t be me” — until it is. Disasters like floods, acts of terror, or a global pandemic were once thought impossible until they happened.
Overconfidence can be your downfall.
Perhaps you’re doing well now, better than ever. But is that a reason to become complacent? To assume the good times will last forever without any effort on your part? By ignoring the warnings, the indicators I’ve laid out, you’re making a choice by default. And when the tide turns — which it inevitably will — you might find yourself on the wrong side of the door that’s been chosen for you.
5 Key Trends for Home Care Agencies to Act on Now
Escalating Expenses and the Inflationary Squeeze.
The conversation among our circle of home care agency owners centers around a stark reality: Costs are spiraling.
According to a Talent.com survey of 10,000 caregiver jobs in the United States, the average salary nationwide is $29,253 per year, or just over $14 per hour. Entry-level roles begin closer to $26,000, whereas senior positions can earn closer to $37,000.
With interest rates peaking at 11.3%, and the government’s attempts to stem the tide, I hear from every vendor that their service rates are on the rise. It’s imperative for home care agencies to consider a substantial rate hike to prevent profit erosion. So when will you adjust your rates? The smart move is to act now, especially with the looming threat of a recession.
The Shifting Landscape of Client Loyalty.
The old notion of a “forever” client is fading fast. In the next 24 months, as financial pressures mount, expect more clients to shop around for care options. This opens doors for those Home Care Agencies that are equipped with superior, caregiver-ready services—a minority, unfortunately.
Securing Premium Clients.
Every home care agency seeks those clients who truly understand and are willing to invest in quality care. However, such premium clients are scarce and increasingly selective, gravitating towards larger, more established agencies capable of a wide array of sophisticated services. It’s a challenging time for smaller providers, but it’s not insurmountable. To compete, you need to refine your offerings and strategically target these high-value clients with a nuanced approach.
The Emergence of ‘Super Agencies’.
The industry is witnessing a wave of consolidations, birthing what we call ‘Super Agencies’. They’re expanding, powered by investment and expert leadership, and they’re after your clientele across the market. With substantial marketing resources and specialized teams, they can dwarf the efforts of smaller agencies. Their advantage? A long-term view backed by robust financial reserves that smaller agencies often lack. For home care agencies, it’s a pivotal moment. Those who pivot and plan strategically are the ones who’ll navigate these industry upheavals successfully.
The Persistent Caregiver Shortage That Isn’t Letting Up
One of the top reasons home care agencies tell us they’re holding back on marketing is because they’re swamped with work and don’t have the staff to meet the demand. Instead of finding a solution, they put marketing and new client acquisition on ice – a hasty and shortsighted reaction that doesn’t truly address the issue.
Home care agencies need to adopt this strategy: Prioritize your most profitable clients and adjust your rates accordingly. You can’t afford to let low-paying clients drain your scarce resources.
And remember, as we’ve seen in the industry, it’s time to raise your prices. It’s all about supply and demand – if demand outstrips supply, you, the provider, hold the cards. That’s why there’s a growing trend towards specialized care, with agencies realizing its smarter and more cost-effective to offer specialized services rather than trying to cover everything and everyone.
Many home care agencies have this ingrained notion that they can’t possibly increase prices or be selective with their clientele. They believe that attracting a client at a higher rate is a mountain too high to climb. We hear, “Others may pull that off, but I can’t.” But that’s such a limiting mindset.
If you think you’re “out of your league,” consider this: we (George and I) built a 7-figure operation from scratch. No backers, no family support, no commercial loans, with one-year old triplets in tow (at my house). Don’t be your own worst enemy by selling yourself short.
The Need for Advanced, Specialized Home Care Solutions, and Care Management Services
Spending on advanced or specialized care and care management services is on the rise. Consumers have become more discerning, often learning the hard way after a less-than-stellar experience with a previous agency. No family member wants to risk a catastrophic incident due to inadequate care or poor planning.
Here’s the opportunity for you: upgrade your services to include advanced care solutions and Care Management as a service.
Ready to unlock these secrets and transform your agency? It’s all within reach – if you step up and take action.
Navigating Market Shifts: Crafting Your Home Care Agency’s Growth Strategy
If we’ve worked together before, you know my style: concrete strategies, real-world tools, and clear examples – not the fluff or trendy nonsense you hear from too many self-proclaimed experts. I’ve always said home care marketing starts with the service itself, and if you’re struggling to sell it, there might be something missing in your offering. So, before we dive into tactics to attract your most valuable clients, we need a service plan that’s:
COMPETITIVE, PROFITABLE, and SCALABLE.
That’s our focus – helping our home care agencies stand out. We’re not settling for “average” here, because let’s face it: average doesn’t cut it.
It’s time to revisit the marketing basics. I’ve seen too many home care agencies lose their edge, failing to update their marketing tactics or grow their sales teams. They’ve been complacent, relying on the influx of work from existing clients – a hangover from the pandemic era – and letting vital marketing initiatives slide.
That’s why we’ve rolled out a fresh 12-week sales training program, aligned with current trends in both our industry and the digital world. It’s a foolproof client acquisition strategy that lets you set bold goals for new Monthly Recurring Revenue (MRR) without second-guessing.
Regardless of the Trends, This Is Non-Negotiable for Success…
Success means having the marketing systems in place to consistently draw in profitable, high-value clients. But the way you approach this is crucial, as many home care agencies unwittingly weaken their position, inviting pricing challenges, and making it harder to attract premium clients and secure the fees they truly deserve.
Often, this manifests in price resistance, stalled sales, and a race to the bottom – all avoidable if you position your agency correctly, away from the fray of cut-throat competition.
I’ve seen it time and again: two home care agencies, nearly identical in every way, chasing the same prospects. One walks away with nothing, while the other secures a contract. It’s not just about the services offered – it’s about how the agency presents itself, the trust it builds, and its positioning in the market.
When you blend exceptional marketing with a solid sales system, and pair it with services that hit the mark, you’ve got the formula for significant growth. That’s why we’re focused on reshaping your business model and sales methods to:
Strengthen Your Agency.
With economic uncertainty, looming competition, and inflation, you need a solid plan to keep your agency robust and profitable.
Give You a Real Edge.
Differentiating your agency is tough, but with the right unique selling proposition – like specialized services – and marketing it effectively, you’ll stand out and can command higher rates.
Enhance Your Business Life.
Aim for less stress and a stronger business foundation. By attracting better clients, you provide exceptional service, reducing risks and reaping the rewards.
Our Complimentary Strategy Session to Land High-Value Clients
If you qualify, I’m offering a strategic marketing planning session with one of my top experts, based on our marketing roadmap.
This session will reveal how to ignite sales, draw in quality clients, and pinpoint growth opportunities you might be missing.
There’s no cost for this session, but it requires completing our application to ensure we maximize our time together. In just an hour, we’ll explore new possibilities for your agency and benchmark your performance against the industry.
We’re not new to this game. After 16 years, we know what works, and we understand how your agency measures up to the competition.
Ready to see how you can rise above industry standards? Let’s get started.
What to Expect from Your Strategy Session:
Direct Answers.
You’ll receive straight-shooting responses to your pressing questions about crafting a marketing strategy, drawing in more clients, and what essential steps are needed to stand out in the increasingly competitive home care sector.
Every question will be tackled head-on. You’ll gain a revealing look at your business marketing and uncover overlooked opportunities for expansion, profit maximization, and client retention that might have slipped through the cracks. Prepare for some eye-opening insights.
Your Business Growth Strategy.
We will give you a business growth and marketing strategy, fine-tuned from experiences with hundreds of home care agencies of all sizes and locations. Whether you’re a startup or an established agency, this roadmap is tailored to navigate any business challenge you’re facing.
This blueprint pinpoints four non-negotiable pillars essential to thriving in this industry. If you’re hitting roadblocks in growth, battling against pricing pushback, or struggling with referrals, you’re likely missing at least one of these key elements – and you won’t hear this from anyone else.
Guided Assistance.
Once we’ve dissected your goals and assessed your resources, I’ll recommend the most suitable programs we offer – no sales traps or pressure tactics.
At the end of our talk, you’ll be equipped with options and clear next steps tailored to your agency’s needs, enabling you to make a well-informed decision about partnering with us. And it’s completely fine if you decide we’re not the right fit for you – no hard feelings.
This Isn’t for Everyone; Here’s Who We Can Help:
There are a few non-negotiables to ensure our conversation is as productive as possible:
The session is designed for business owners. If you have a partner or key team member, bring them along – this is for decision-makers only. Make sure they’re individuals you’re comfortable discussing in-depth business details with.
Marketing managers, sales leads, or operations staff, while valued, will need to engage with us through a different channel. If that’s you, give our office a ring and we’ll guide you to the right resources.
And if you’re hunting for quick fixes or superficial marketing tips, we’re not the match for you. We’re in the business of comprehensive, strategic marketing that requires commitment and active involvement – a systematic approach to shaping your agency by design, not by chance.
Ready to Elevate Your Home Care Agency? Here’s Your Next Move:
Step 1: Dive In
Head over to our website and fill out the form on our contact us page. It’s straightforward and crucial for tailoring our plan to your business. Take that extra minute to share details – it’s vital for our preparation.
Step 2: Book Your Spot
Once you’ve submitted the questionnaire, you’ll be directed to an online calendar. Choose the best time for your strategy session. Set aside about an hour, distraction-free, to really dig into your business goals and queries.
Step 3: Review Prep Material
If your application fits the bill, my team will send over key materials to review BEFORE we talk. This isn’t just light reading – it’s a deep dive into our marketing methods, client success stories, and the comprehensive approach we take.
Note: We’re selective – this invitation is for home care agency CEOs serious about scaling up, ready to attract more clients, and committed to a solid marketing strategy.
Urgent Reminder: Time is Crucial
If your agency isn’t where you want it to be – if growth, stability, and client acquisition aren’t up to your expectations – it’s time to act, not delay. Procrastination only leads to lost opportunities and growth that could have been yours.
You’re behind, but it’s not too late. You should’ve been building a client attraction system yesterday. Stop the excuses, visit the website now, and apply. You’ll thank yourself later.
A Crucial Message on Preparing for Economic Uncertainty
We’ve all felt it this past year – the slow, suspenseful climb of a roller-coaster, knowing that at some point we must crest the hill and potentially face a steep drop.
By technical definitions, we’re in a recession, though some hesitate to concede, betting on a resilient job market to buffer the impact. Maybe they’re onto something for the latter half of this year, but looking ahead? It’s not as clear.
Successful leaders and savvy entrepreneurs don’t just look at the present; they anticipate and plan for future challenges.
The silver lining for business owners is control – the power to make decisions that fortify profits and bolster financial resilience. You have the levers to initiate sales and marketing strategies that could elevate your client base and revenue from this day forward.
If you’re detecting vulnerabilities within your business – whether it’s sales, marketing, margins, debt, or staffing – the time to address these issues is now.
The proactive steps you take will only enhance your return on investment, strengthening your business further. Conversely, sticking with outdated models and thin margins is a risky gamble if economic conditions worsen.
If you can’t see the sense in readying your business for fiercer competition and a potential economic squeeze, by leveraging the expanding market for outsourced home care services, raising your rates, and appealing to a more premium clientele with advanced services, I’m open to hearing why. But if you know deep down that change is necessary, let’s talk today.
Valerie VanBooven RN BSN
Co-Owner
Approved Senior Network®
Valerie VanBooven RN, BSN founded the company after years of working in many different roles from ICU Nurse to Discharge Planner, Home Care, Care Management and more. She wrote her first book in 2003, called “Aging Answers”. After that came “The Senior Solution” in 2009.
Valerie and her staff grew as more home care agencies and senior service businesses realized the undeniable value of being found online.
