Today’s Private Duty In-Home Senior Care Industry is truly Big Bucks for
the AGEncy Owner, but makes little to no cents for the one providing the actual
care. YOU have the means to make a difference in this. What you know now will
help you later.
Need someone to watch over your aging loved one while you are otherwise busy?
Senior Home Care is big business making millions for the owners of the agencies
in your area. Some people see this as a
new MLM hidden under the blanket of a family of ‘franchises’.
So, before you run to the phone to employ a
dedicated hardworking caregiver who will only make miniscule funds (approximately
36% or $9 of the $25 you are charged by the Agency) to care for your family, you owe
it to yourself to read this. Making a living is alright in the world of business.
Yet many owners push & shove their way to the top of their company status quo by being experts in
taking advantage of employee’s skills to make a buck & discarding them once
the gig is up. Often the same is true that the company & the owner begin
seeing the client as a number (often a dollar sign attached). How do they sleep at
night with this sham lurking beneath their bank covers?
Yes, you are
paying for the owner’s one of many multimillion dollar estates, a tricked out RV,
new Beemer, & another exotic vacation cruise for their entire family. The staff members that are hired to run the
office find themselves at the revolving door of termination once the truth is
uncovered & ethics are questioned. While owners have no tolerance for
objections once greed has overtaken the reason for doing what they do, the
truth always comes out eventually.
When you elect to hire someone directly (without an agency) to be there for your loved one you are
able to pay a fair wage for their services.
An Agency will only pay the caregiver minimum. The difference is when you
hire via an agency; you are making one person, the owner of the agency- very,
very RICH.
If you have read
this far and this is of interest to you, be aware that for every hour you are
billed for a care giver, the owner of the agency you have contracted personally
pockets approximately $11 of that $25. That is absurd.
To help clarify, here’s a little math:
Average example: An Agency has 300 clients at a required minimum of 24 hrs of
service per week x $25/hr for approximately 52 weeks...
Less franchise fees of $5 per billable hour.
The care giver makes $9 before taxes (no benefits are provided). The owner is
making a sweet: $80,000 take home a week? Yes you read that correctly!!! (only
300 clients...)
You will pay $31,200 a year for 24 hrs of care a week (although you probably
will discover an alternative to this expense of $2600/mo)
Remember- the following is based from only 24 hrs care/wk.
$31,200 per year x 300 clients = $9,360,000 INCOME
$20,000 lease for office / mo x 12 = $240,000/yr
$50,000 salary for each of the 10 office staff = $500,000
*More accurate salaries range in the mid $30s.
$1,800,000 paid to the Franchise ($5 per hr billed)= $1,800,000
$11,232 / yr paid to each of the 300 Care Givers ($9/hr x 24 x52) = $3,369,600
(An additional $100,000 for miscellaneous expenses)
Drum Roll (be sure you are sitting down less you fall over).
With only 300 clients a week...imagine the numbers increasing-
Agency Income: $9,360,000 annually
Total overhead: $6,010,000 annually
Total owner profit: $3,350,000 annually
Care Giver hourly: $11,232 - $15,000 (24-31 hrs/wk) no benefits.
I remember when I was a privately hired care giver, as a 1099, I was making the fee which
would have been paid the agency. In addition to this opportunity, I have also worked
as a business & marketing manager on the inside of this industry for
agencies. I know first hand the game of scrambling to grab another customer to provide 'a service' (Check the oil please)
I have assisted the owner(s) to become millionaires & have watched egos &
arrogance swell with each dollar bill added to the bankroll. With little to no
respect for the well being of those in their employ *short lived at
that....the areas of big business BS that is shadowed by the sweet, caring --facade.
When you hire someone to provide the actual CARE for your
family member compensate them fairly. The agency is not doing anything that you
yourself could do. Knowledge is powerful & rewarding. Your loved one need
not pay more than needed. Negotiate. Think about it- it’s personal to the
caregiver...its profit for the owner- plain & simple.
BEFORE the need arises, do your research. Find a genuine caregiver who meets
your qualifications. They need to support their family; themselves....You can then
be part of their solution as they become part of yours.
<Although the billable fees & amounts may vary per agency-the above is an example, the truth of the matter is still accurate. You can control the quality & the cost of care>
RESOURCES:
Do you enjoy helping people or caring for elderly family
members? You may want to steer your natural compassion toward a career as a
home health or personal care aide, a field that is heating up across the
country.
According to the U.S. Department of Labor, home health and
personal care aides help older adults or people who are chronically ill,
disabled, or cognitively impaired execute day-to-day activities like bathing or
light housekeeping.
Hot Factors: The Department of Labor says employment of
home health and personal care aides is projected to grow by a staggering 70
percent from 2010 to 2020, resulting in a total increase of 1.3 million
professionals.
Why such impressive growth? There is a huge cohort of baby
boomers reaching the age of care, says Shatkin. Plus, he says, the preceding
generation is already well into that age.
Shatkin also identifies a shift in how elderly care is performed
today. "The practice has been to move toward caring for people at home as
much as possible, partly to contain health care costs and partly because the
outcomes are better when people are in their familiar environment," he
says.
Education
Requirements: If you're interested
in pursuing a career as a home health or personal care aide, here's some great
news: According to the Department, there are no formal education requirements
for this profession. However, most aides have a high school diploma and those
working in home health or hospice agencies must have "formal training and
pass a standardized test."
'The values & ethics you establish in your youth will be
seen in your adulthood. True leadership is how you make decisions in the
moment. What you choose reflects what you value.
