Need to Generate Income? What if You Could Enter the Growing Home Health Care Field to Financially Benefit From the “Uptick in World Aging and Chronic Disease?”
January 2, 2009 by Anne
Filed under Anne Holmes, Blog, Employment, Entrepreneurs, Health & Fitness, Sleep Apnea, Work, Money & Retirement
There’s no two ways about it: The fact that we humans are all getting older every day is as sure as the inevitability of death and taxes.
Your challenge is to figure out how to use this to your advantage… And do it in a way that will make you money. One big idea is to develop a home health care oriented business related to helping people deal with chronic health conditions. And do it now:
- Don’t be like, Vivian, one of my former coaching clients, a 60+ physical therapist, who had an idea for a product to be used by Alzheimer’s patients.
- It was a great idea: Simple, elegant, effective, dignity-enhancing, and inexpensive to manufacture.
- A product that, if developed, would have sold like hotcakes, and made her a wealthy woman.
- Sadly, she was so bound by fear that her idea would be laughed at that she waited a decade to seek help in bringing her idea to fruition.
- In the end, just as I was aiding her to explore the manufacture of her “baby,” she was diagnosed with stage four breast cancer, and didn’t survive her treatment. Talk about a tragedy.
So as you’re sitting there, wondering what sort of business you can get into that will help you successfully ride out this current recession, think about the obvious:
- What is it that people will always need, no matter what the economy is doing?
- What resources can you personally access to serve these needs?
- How might you be able to set things up to provide yourself with an ongoing, recurring monthly income? One that can be grown, but that won’t likely be discontinued, once you acquire a customer?
Your answers to these questions are crucial: They could help you develop a recession-proof business that will fund your retirement.
Actually, these are the very same question the “big boys” of industry are currently asking. Based on their answers, they’re taking action – they’re shedding old businesses that don’t support the answers they’ve arrived at, and acquiring new ones which do.
Need proof? Check out this recent article from the New York Times, ”Royal Philips Sheds Old Businesses for New Directions,” which notes that execs at the Dutch industrial giant have become convinced of two things:
- The population is getting older and
- It is becoming more interested in becoming ”greener”
The article notes that these two trends – aging and greening – are guiding Philips as it transforms itself, reorganizing its divisions and jettisoning (non-compliant) product lines while picking up others. (For the purposes of this article, we’ll stick to the aging aspect and save going green for another day…)
Of course this is worth our attention. After all, Royal Philips is a well-known a manufacturer. By the way, we’re not talking about the folks who bring you Milk of Magnesia or the petroleum company. We’re discussing the firm previously known for its manufacture of home electronics products, including:
- Magnavox televisions
- DVD, Blu-ray and home theater surround-sound devices
- MP3 players, home appliances and portable music accessories
- Philips incandescent light bulbs
- Norelco shavers
- Sonicare power toothbrushes
“Uptick in World Aging”
These days, Royal Philips is selling off its home electronics businesses and instead delving into the business of selling hospital and at-home scanning and monitoring equipment and high-tech light bulbs made with light-emitting diodes.
- “We were a technology-driven company,”said Gerard J. Kleisterlee, the chief executive of Philips. “But that is only one element. Now we are focusing on care cycles. ‘Health and well-being’ is a common theme that everyone works on.”
- Or, as the company’s chief financial officer, Pierre-Jean Sivignon, puts it: ”An uptick in world aging and chronic diseases will drive our business.”
To support this new business direction, Philips has acquired a number of existing firms: First, they bought Lifeline, a home health care monitoring system, perhaps best known to millions of Americans for an old television commercial whose tagline was, “Help! I’ve fallen and I can’t get up!”
Dozen of comedians had with that line, but despite the fun, the fact is, almost 40% of all seniors fall each year, and protecting them when they do, is big business. Look at these facts related to falls and medical helplessness at home:
- Falls are one of the most serious health risks among seniors over the age of 65, affecting more people than stroke and heart attacks combined.
- Falls are the leading cause of death due to injury in those people 65 and over.
- 95% of hip fractures are caused by falls. 40% of those hospitalized for hip fracture do not return to independent living and 20% will die within a year.
- More than half (55%) of all falls by seniors take place in the home. An additional 23% occur outside but near the house. Lifeline can intervene in close to 80% of all falls.
- Most falls go unreported, but it is expected that 35-40% of people over the age of 65 fall each year.
- Those who fall are 2-3 times more likely to fall again.
- Additionally, many other chronic medical conditions place millions more seniors at risk.Cardiovascular disease, pulmonary disease, arthritis, diabetes, osteoporosis, diminished hearing and eyesight, and Parkinson’s all leave seniors vulnerable to helplessness at home.
No wonder Lifeline currently keeps track of 720,000 elderly or infirm at-home customers in the United States and Canada. Doubtless the number of people who subscribe to this service will continue to grow as our world population continues to age.
The Importance of Developing Recurring Income
- Most noteworthy is that Lifeline uses an intriguing business model, which you might do well to consider: they give away their products and charge a monthly fee for their use.
- Explains Ronald Feinstein, Philips Lifeline president, “I don’t want to sell blood pressure cuffs and defibrillators, I want to give them away and charge a monthly fee.”
- Currently, customers pay $35 to $45 a month, for use of a pendant or a TV set-top box that connects to Lifeline. If they experience a medical problem, they push a button on the device to summon help.
Not surprisingly, considering that their target market is people who are aged or infirm, the company does lose about 35 percent of its subscribers to death each year. But you might wonder whether they even notice: After all, since the world continues to age, they have been able to grow their subscriber base about 10 percent a year.
- At this point, the company estimates it owns 60 percent of the home-monitoring market in the United States.
- The final addition to their home-healthcare monitoring revenue stream: the 250 installers who show the subscribers how to use the devices also sell them other products, like fall detectors and automatic pill dispensers.
- But to round out their presence in the medical monitoring field, Philips also sells cardiac home monitors that transmit data to a doctor’s office, home defibrillators and a variety of out-patient monitoring systems for assisted living operations.
Chronic Health Conditions Require Regular Treatment
Next up, Philips bought Respironics, the home health care firm which is best known for their positive airway pressure (PAP) machines and accessories used to treat sleep apnea and other sleep disorders.
- As with Lifeline, Philip’s Respironics business uses a business model which charges a monthly fee for use of their equipment.
- And finally, Philips entry into the Home Medical Equipment field means that they can roll out ancillary products, such as oxygen therapy, light therapy and respiratory drug therapies. You can also develop ancillary products, once you get your business started…
Home Health Care Future Is Bright
Philips Healthcare anticipates great successes ahead with their home health care businesses: Says John L. Miclot, CEO of Philips Home Healthcare Solutions:
- “By leveraging our strengths as Philips Home Healthcare Solutions, we will improve quality of life for at-risk individuals through better awareness, diagnosis, treatment, monitoring and management of their conditions – in the home.”
- “We are looking to a bright future as part of Philips Healthcare. We’re expanding our efforts to simplify healthcare by providing innovative solutions for the home that connect patients to their providers and support independent living for at-risk individuals.”
Should You Try For a Slice of the Home Health Care Pie?
- A Dog-Walking Service for the Homebound? – Pets are great companions, of course. But those who are physically challenged may have difficulty exercising their pets, washing them, trimming their nails or getting them to the vet. This business is similar to the pet care services provided for people on vacation, but would give you the benefit of regular repeat business.
- A Personal Shopper/Delivery Service? – “Have car, will shop or run your errands.” Many physically challenged people would appreciate having access to a service that runs errands and even does grocery shopping. Alternately, offer a service where you pick up and deliver meals from restaurants which don’t normally offer delivery. Anyone who has difficulty getting into and out of a car would be a prospect. Also, home-based business people who are busy would likely appreciate this sort of personal assistance.
- An On Call Barber/Beautician/Massage Therapist Service – Again, the concept is that you take your service to the client, and do the work at their home, saving them from the physical challenges of having to leave their home.
Not interested in providing an in-the-home service?
There are still thousands of other options. How about:
- A service where your clients call in daily, to confirm that they are OK, and receive some message or benefit in the process. Similar to the Lifeline service, this concept requires that your clients call you daily – at a pre-arranged time – to confirm that all is well. Of course, you can augment and personalize the service Lifeline offers in many ways. This would be a service many Baby Boomers who live far from their parents but have concerns over them would find beneficial.
- Or you might offer a subscriber service where prepare you deliver a daily blog post or podcast on a topic of interest – possibly even something as simple as reading aloud a chapter of a book each day.
- Another concept could be running a group call or teleconference on a daily or weekly basis.
- A “virtual book club,” for example.
- Or a specialized virtual support group - could be for people with a specific disability, like fibromyalgia, for example.
- Or possibly a support group for Alzheimer’s caregivers.
- These virtual groups have the benefit of not being limited by geography. You could actually have people calling in from all over the country – your only limitation to a world group being time zones.
- Videos are great too!
- Could you create a series of exercise videos specifically designed for people with physical limitations of one type or another?
- What about a book, workbook, video and journaling program to assist people recovering from stroke or other life-altering illness to relearn skills they’ve lost? Possibly how to survive hip replacement surgery, for example. Or maybe how to learn to love your C-PAP machine – for those newly diagnosed with sleep apnea?
- Finally, my favorite: An Ombudsman Service for people who are challenged by working the American healthcare system. If you’re good at details and cutting through red tape, there’s a huge need for this service. And in some situations - such as arguing with insurance companies - you can do the work from home!
What Makes a Great Concept for This Type of Business?
- Ideally, your new home health care business will not be labor intensive: You are able to do it once, and get paid repeatedly. A subscription service, for example. Or a book you write once and sell many times. Possibly a combination of both…
- A service you provide that insurance companies will cover is also ideal, because it limits your customers’ out of pocket expense and means your payments can be automated.
- Look at your skillsets and figure out whether you can offer a product or service that is unique, solves a problem, and does not require you to “trade hours for dollars.”
- A product or service that is based on your own experiences and your concern for helping others overcome a challenge you have faced. The personal aspect really shines through! This then might be something you market through doctors or clinics which work with people experiencing the same medical challenge.
- And don’t forget the lesson Royal Philips teaches us: Strongly consider a product you can give away, which then allows you to charge a monthly fee for service or maintenance!
Now it’s your turn!
Put on your thinking cap, assess your life experience, and come up with some business concepts and ideas. Then develop a business plan that will put you in the game!
What are you waiting for? Go! Do! Now! The world is aging, and it needs your help!
Nice writing style. Looking forward to reading more from you.
Chris Moran
Thanks, Chris,
I appreciate the compliment. What topics would you like to read more about?
You make some excellent points Anne. It has come to the point of that we have to take financial responsibility for ourselves. We can not depend on SS, welfare, medicaid, medicare, the goverment or a company or corporation.
We are used to living in a victim society. The paradigm shift has occurred where we need to empower ourselves. In particular, financially.
The internet has become the largest area to search for income.
It is up to us to make it happen!!
With an aging population, it makes sense to create businesses around serving the needs of the boomers…but if things continue the way they are, the boomers might not be able to afford services!
I liked this most friend as you have combined money with heath. Ya you are absolutely right at your thought. Until unless we have sufficient money in our hand we can look after our health issues properly. Al though money is not every thing but money does a great role in human life. I have a small favorite quote ” Money does not give happiness but sometime it reduces the misery”. At the same time we should not be money monger.
I came to your site from the mybloglog community. Wish you many more success like this one. Congratulation for the hard work and good attitude toward life. Wish many more from you.
At the last thanks a lot for giving us the facility of getting anchored text backlink from your site though this comment.
Thanks for the article Anne. I would also like to see more articles from you. You are a talented writer and bring up some very good points. There does come a time that we must take account for ourselves, from our health to our home to our finances. I look forward to reading more of your articles and will watch your blog.
Thank you, I really need to know this especially at this age. Hopefully I will be able to keep myself healthy
Thanks for posting that. Its something to think long and hard about
A timely topic for this economy Anne, and I especially like the dog walking service suggestion. In fact, I think services that provide assistance to elderly or disabled people who would like to remain in their own home versus going into assisted living, would be labor intensive but very useful. Assisted living facilities are expensive and many older Americans have lost a lot of their net worth recently, so they may have no other choice besides staying at home and will require help to do so.
I’ve read about 5 of your posts, I like your writing style. I know few peoples who are making a little fortune developing a home health care business. Thank you for your great posts and for this opportunity offered by KeywordLuv on your blog. I will come back for reading more from your articles.
My grandmother uses a system just like the lifeline system you described above – it certainly helped her get the help and attention she required when she had a fall in her home.
Great article!!
Anything medical care is good. People are going to be looking for care, more medicine, more doctors, more everything. Going into anything to deal with a person’s health is a win.
Is there a niche that you have not covered ? you have offered so many opportunities, my missus is looking into elderly assistance or nursing … she has to do several courses first to get the certificates … so many elderly folks are capable of living at home … and would prefer the option of personal assisatance rather than the costly old folks home.
I think that it is so true that the population is becoming older and more concerned with being eco-friendly, which is something that you need to consider when targeting any business opportunity, especially home healthcare.
As long as those services will actually provide care and health improvement – thumbs up. I just hope that if this business will become popular there won’t be any increacy of scams, magic formulas etc..
Hi,
I like your writing style. I know few peoples who are making a little fortune developing a home health care business. Thank you for your great posts and for this opportunity offered by Keywordluv on your blog.
Thanks for sharing.
Hi, I stumbled across your website and I must congratulate you not only for your template but for the content also. People do need this information in these times of financial crisis.
Citing you first pharagraph:
One big idea is to develop a home health care oriented business
I could be more agree with you, the best business is health care. I am doing a kind of similar business using some kind of natural diet pills where the manufacturer sell them very cheap also they provide the easiest way to manufacture any natural type product.
Thank you for sharing, we all need help on these times of financial crisis.
Regards.
In an aging population like we have – it makes perfect sense to start up a business like this! The market is only going to grow and grow – and it’d be good to get a slice of that pie!
Health care is totally going to be on the rise. I know my mom is a baby boomer and going to need health care soon
While I was comparing blogs online, I discovered your blog – quite by accident. After reading several posts, I think this is a good blog.
I really liked your blog!
I agree the health care provides a great opportunity for people to make some decent income. the tips and advice you offer in this post are very insightful. There are some areas of the health care business opportunity that you mention that did not even cross my mind. Thanks
All the points are excellent. I believe that The implications of this study are important from a stress management perspective because chronic illness obviously causes a great deal of stress because it can affect some of the factors that contribute to chronic illness.
There’s definitely a growing market in health care for the elderly. We’re all living longer so it stands to reason more people are going to need these services
Being healthy is one of people’s priorities so it’s just fitting to know that it’s one of the growing industries.
@Sandra – Not to mention all the physical illnesses that can be caused by stress. You should try doing a wiki on anxiety – the number of physical symptoms are astonishing!
It’s interesting to note how personal healthcare has faired in the recent downturn. In addition, with the gradual degradation of the NHS in the UK, it will be interesting to see what happens.
The ever growing need of us human being to look after our health as indeed become evident as more and more are venturing to the health niche sites.
Thanks for sharing you post with us.
It will certainly be interesting to see new technology and new careers developed around an aging population. I think your point about lifeline losing 35% of its subscribers a year was very interesting from a business standpoint. In most businesses, this would be a death spiral. To have to replace 1/3 of your customers every year, just to keep your current revenue is very difficult. It would be like having to hit a target of 30% growth year after year, just to stay at their current level.
Granted, this is easier for them as the population is aging, but what happens when we get over the hump and go on the back side of the baby boomer generation. Lifeline better have an exit strategy or a way to reinvent itself, because they surely won’t be able to keep up this level of growth after the boomers.
Just an interesting thought from a business model standpoint.
You not only have the opportunity to make a steady income but helping the elderly is a reward on it’s own. I remember doing volunteer work in high school at a retirement home, although the work was tough and grueling, I did learn a lot from that experience.
Home telemonitoring of chronic diseases seems to be a promising patient management approach that produces accurate and reliable data, empowers patients, influences their attitudes and behaviors, and potentially improves their medical conditions. Future studies need to build evidence related to its clinical effects, cost effectiveness, impacts on services utilization, and acceptance by health care providers.
Home health care can consist of having a private-duty nurse come to the patient’s home for extended care or help with a ventilator, IV’s, gastrostomy tubes and other chronic medical needs. It can also involve the training of household members to give such treatments under supervision. Home personal care can be provided to help with meals or personal grooming as well as assistance with household chores such as cleaning or laundry.
Yeah, I agree with some of the above posts. With the aging population and with the proposed changes to American healthcare, this is a very interesting time in the health care industry.
@David: But how would you define the thin line between generating an income and milking the health industry that is already known for its outrageous prices?
Medicines and medical care are probably the only things which will never fall in value
Its very simple, you will allways need it, even if the market falls.. it will not effect the medical care value
Health really is the most important thing to a person.
It will be very interesting to see how much longer life expectancy will increase as our technologies increase. Im hoping to live to 100!!!
Health care and pharmaceutical products are the biggest money makers in America, its a known fact. And it will continue to be this way just because health is the one constant which is equally important to everyone.
Thanks for this article about health care. I live in Holland and I have to say: things are quite different here. Here the health industry is a bit less concentrated on making lots of money and a bit more on providing good health care.
I agree with everyone who said that health is very important. People willing to pay lots in order to make they live healthy. Therefore any business realted with health care is prospective.
Using the technology to monitor the patient condition is absolutely praiseworthy thing.Tele-monitoring of the disease condition is very much helpful in changing the treatment according to the patients health condition. It is better to have home health equipment every home.The equipment that detects & sends the information about falls at home is the real worthy thing to have to avoid the life loss of the people.with all these features the home health care business no doubt will have a better growth..
This article brings up a good point, life is short and you need to act on your ideas! You don’t want to look back on nothing but regrets.
Nice read. I do believe ‘that Life is what and how you make it. ” Every decision you make has a great in fact in the life you have in the future. Thanks for sharing this article. I’ve learned a lot of good points that need to reflect on.
Really interesting article, certainly given me some food for thought. There will always be a need for a service like this.
What awesome ideas on home business services! some of these can be integrated into great business plans. Entrepreneurs should feel thrilled after reading this!
As long as it offers home and eco-friendly services then for the win lets do it. Health is vital right now and it’s good that people are becoming conscious and is already participating in a much greener world and greener healthier life. Great Post! Thank you for the share.
“Home Health Care Future Is Bright ” . I totally agree with you on this one Anne. I read that the hole world will become more health conscious by 2011 (which is just next year) an industry that would have grown nearly 100% in the last 3 years!
Phenomenal. Your article is insightful and marvelously written with so much informative knowledge.
Because of our aging population, there are more and more industries popping up to serve them in some way. We always think that the “Big boys”, the large international corporations, have thought of every possible way, but they haven’t. There might be some insignificant area, or even a device, that could help our senior citizens that hasn’t been brought out yet. I think that serving them in some personal way would benefit. Buying their food, trips to doctors, etc, can be a very worth while thing.