Healthcare services have garnered tremendous popularity in the United States. Since the pandemic, the focus towards healthcare services had grown dramatically. This translates into exceptional opportunities for healthcare franchises in 2022.
The popularity of healthcare franchising has accelerated due to a variety of reasons. Some of them include:
- Sizable aging population
- Patients being empowered now
- Availability of Affordable medical services
- No more one-size-fits-all model but a customized patient-centric model
- Service delivery method aiming at patient’s primary needs
Franchising focuses on the strong growth of the medical care industry by providing a better working environment including training, encouraging knowledge exchange between professionals, providing access to innovation regarding treatment techniques, and offering a customized patient-care strategy. As a result, the expected growth of urgent care centers towards the end of 2022 is expected to be around $40.3bn.
“For the first time really we’re discovering physicians are expressing much more openness and willingness to consider information about their patients coming from DIY devices.”
-Ceci Connolly, Leader of PwC’s Health Research Institute
1. 4 Trends that are Shaping the Future of the Healthcare Industry
The recent COVID-19 pandemic showed us the influential role of technological innovation that took the global healthcare industry to new heights. Many healthcare giants turned their attention towards technology and believed its potential to bring a halt to the worldwide exposure of the pandemic.
While it took considerable time to bring solutions to the effect of the pandemic, some new trends in this space emerged promisingly with the potential to shape the future of the healthcare industry.
Here is a take on these trends:
Franchise healthcare model is taking over the traditional medical industry
Franchise model in healthcare is becoming a favorite to an increasing number of health practitioners. This model paves the way for a new revenue system in the already profitable healthcare industry. The monetary benefit is a reason for corporate healthcare systems to adopt the franchising model, cash in the brand exposure and leverage on the already existing brand identity. More and more healthcare systems are also partnering with urgent care health franchises, the worth of which is currently valued at $30 billion annually.
Acquisition is becoming the norm
The healthcare franchise sector in the US is expanding continually. The Bureau of Labor Statistics (BLS) has estimated an increase of around 11 million jobs in the 2020-2030 decade. The expansion is a result of mergers and acquisitions being carried out by the industry players. Small entities have been given the ease to merge with big players to sustain financial security and grow their patient base.
Exclusive benefits to patients
The ongoing prevalence of the healthcare franchise model is ensuring exclusive patient care at a lower cost covering all their (patient) treatment expenses. The US healthcare system has made it mandatory for hospitals to remain transparent regarding medical bills and out-of-pocket costs to enable patients to understand the upfront service cost. The decision has been taken to enable patients towards a more informed decision as they get clarity on the expenses prior to the treatment. This ensures value-based care and services that are made to suit the patient's requirements.
Service delivery revolves around care on-demand
60% of adults in the US have more than one chronic condition. Convenience is the key for these patients as they want care on-demand. As demands from patients are changing, the outcome can easily be noticed in the form of personalized care to the patients and further expansion of healthcare franchises. The best thing about healthcare franchise models is they are built around diversifying the nature of care facilities. They aim to offer advanced healthcare services while remaining affordable to the patients.
2. What Does the Future of Healthcare Franchises Entail?
A large-scale disruption can easily be seen in the healthcare sector. All thanks to the franchising model. Driven by increased consumer engagement, the franchising model in healthcare is here to stay for long.
Franchising model primarily aims at:
- Being a substitute to the emergency healthcare at a much lower cost, and
- Providing a gamut of medical services to the patients
While the healthcare franchise solves two different purposes simultaneously, it also ensures a profitable business model for the medical practitioner. For patients, on the other hand, the urgent care services can be attained quickly and at reasonable cost in urban communities. However, they are still not available in rural areas.
The widespread use of urgent care services in rural areas is predicted to grow year after year with the inclusion of technology in the services. Rural areas still lack some basic infrastructure for quick access and therefore the services are a bit difficult to obtain.
The prediction also seems possible because insurance companies are supporting their growth. Insurance companies can save largely by partnering with urgent care centers as compared to traditional emergency care services. Some insurance companies even reimburse patients at an increased rate when they get services at urgent care. As a result, it offers a win-win situation to both patients and the care-facility centers.
3. How does franchising make it possible to compete with big healthcare organizations?
Most healthcare practitioners are good at providing medical facilities but they lack the required experience of running a business. It’s unfortunate given the fact that they ace in one service but need to rely on others to find a strong foothold in learning the ins and outs of managing a business. Franchise offers such physicians the required support and opportunity via a proven business setup.
The franchise model offers them all the guidance, required training, marketing insights, and background support of a popular brand. A recognized brand helps increase the customer base with a consistent brand experience. Having strong franchise support offers:
- The much-required competitive edge
- Step-by-step guidance on operations and marketing strategies
- A sense of security to sustain over corporate medical practices
- Risk management assistance by experienced entrepreneurs
Medical franchise models are promising as medical practitioners and well-established brands can work together to offer exceptional benefits to the end consumers. On one hand, where physicians give their best on patient care, the other partner, on the other hand, can take care of the business while remaining focused on the areas of expertise. Besides these perks, reports have it that the number of healthcare franchises has tripled in the last two decades.
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4. Why is healthcare franchise an excellent business choice in 2022?
The past few years have seen a drastic growth in the healthcare franchise popularity, especially in the US. A large number of entrepreneurs are keen to invest in this model owing to the immense profitability associated with the healthcare franchises.
The healthcare model as a whole includes different sub-fields that are popular and profitable at the same time. One such field is regenerative medicine. It is a technique that uses the body's healing traits to cure pain points. The industry is currently profitable at an estimated $13 billion. By 2030, this sector will generate $172 billion at a growth rate of more than 26%. With such a vast scope of profit, healthcare franchises can be an excellent business choice.
Franchises allow a much more organized and profitable set-up in comparison to traditional practices. The business choice is excellent for those having minimal investment as they can easily partner with big investors to start the business.
A healthcare franchise allows all the essential guidance required to manage, run, and make a profit through an existing business setup. This ensures there is no need for initial expense on early marketing as the brand comes with its own widespread identity.
Since the medical industry will always remain in demand owing to increasing health-hazardous diseases and unfit lifestyles, the franchises could easily make money with this business idea and cash in the success along with huge profit margins.
The franchise model can also be considered owing to the safe environment it offers to a new practitioner. The model helps these practitioners to play two roles successfully; being a private practitioner and an entrepreneur at the same time.
5. How does franchising make it possible to compete?
Healthcare expenditure in the US had reached $4.1 trillion in 2020, and is poised to reach $6.2 trillion by 2028. Thus, considering a medical franchise is profitable at any given time.
Franchise reduces the risk associated with operations. Their responsibility to provide early investment, paying for the build-out, inventory, and management allows business to run smoothly. Franchise does allow access to training in all areas as per the requirement, which is why it is easier to thrive even among a host of other similar service providers.
Franchising in healthcare ensures enhancing the quality and accessibility of services to the patients. It is used to improve the competitiveness of the organization along with offering medical professionals a structured working environment.
6. The rise of home care franchise in 2022
By 2050 the aging population in the US is expected to reach anywhere around 88 million. That’s a huge number to cater to considering the limitations of traditional medical care. That’s where home care franchises bring the required assistance not only to the aging population but to everyone.
Home care franchise services accelerated tremendously during and after COVID-19 pandemic. The aging population likes it much better to get in-home care, paving an easy way for franchises to skyrocket in 2022.
The cost of in-home care in the US is anywhere between $9-$12, much less compared to the cost of living in the US. Moreover, with the aid of technology, in different kinds of home care facilities, caregivers can be trained to use digital assistance while offering the services such as remote monitoring, medical reminders, and abnormality alerts.
Here are different types of home care franchises that can offer the best investment
In-home medical franchises: Offers medication delivery along with helping with illness recovery.
Cognitive training: Helps prevent isolation, which is a serious problem with seniors today.
Physical therapy: Improves quality of life maintenance and assists with medical recovery
“Traditionally, remote monitoring is seen as a short-to-medium term adjunct to regular care to empower patients for self-management following hospitalization. Long-term use is not usually feasible due to cost. However, based on our findings, we speculate that increasing the duration of the program to enable patients to develop self-competency may improve outcomes.”
Dr. Stephen Agboola, Massachusetts General Hospital
7. 3 Tips on setting up a healthcare franchise business
The healthcare franchise trend continues owing to the vast revenue and huge business exposure. But investing in a healthcare franchise requires foresightedness that should not be overlooked.
It is also essential to find out if your budget needs are rightly aligning with the brand’s investment requirement. Right from researching to keeping in mind the pros and cons of entering into a franchise business model, here is all that should be considered:
Choosing a healthcare franchise that has similar goals
Before choosing the right healthcare business franchise, pause and think about the one that could suit the business personality. Every business reflects a personality and owns skills and goals that are different from their counterparts.
Stand out from competition
Existing brand recognition can help you stand out from the market competition. Highlighting the things that your brand does differently will help to offer it a completely new exposure among the customers.
Keeping legalities in mind
Dealing with people’s health is a huge responsibility. The services should always abide by the state and healthcare laws to ensure compliant care. It will involve registering with existing healthcare centers, seeking legal and professional advice, and insurance regulation to ensure service security.
The Healthcare franchise industry is estimated to generate $100 billion (revenue) by 2024. To benefit from this thriving industry, it is also important to choose assistance that could offer affordable construction expansion keeping the business’s persona in mind. NY Engineers could offer the right assistance with the right exposure.