Solving the Home Care Crisis

According to an estimate, the ageing population of America would be 71.5 million by 2030. During that time, it might become difficult for the home care industry to retain and recruit a large workforce.

Demographic Shifts and a Struggling Workforce

As estimated, in 2020, people over 65 or older will outnumber children under five years of age for the first time. Even a survey conducted in 2014 by the Public Policy Institute, AARP, according to which 87% of adults age over 65 want to age in a place that means in their current community, home and 70% will need assistance to do so.

There was also research done by Paraprofessional Healthcare Institute (PHI), according to which the home care workforce has doubled in size between the years 2005 (700,000) and 2015 (1.4 million). As per the prediction made by the Bureau of Labor Statistics (BLS), more than one million new caregivers will enter the Home Care Industry by 2024 to meet the need.

Solving the Home Care Crisis
Around 90 per cent of women and the median age is around 45. Among them, 28% of workers are over 55 years of age. When these workers cross 55 years, they will be replaced with a younger and more active workforce, including more men.

Although there are few training requirements for a candidate who is willing to work as a home care worker, it means they need a low level of education or experience to enter the industry. But when the low levels of training coupled with inconsistent hours, low wages, and lack of understanding, it results in higher turnover. This is because new caregivers are not ready for the job and seek other options to explore.

72% of home health care revenue comes directly from public programs. However, the reimbursement rates are quite low, which drives down wages across the industry. In 2015, the National per-hour Medical reimbursement rates ranged from $13.43-$18.82 on average. These are hard enough to cover the agencies’ costs of hiring, training, and supervising employees.

The remaining 28% comes from the blend of private insurance, longterm care insurance, and private pay. Private pay is considered one of the most lucrative revenue sources. It is backed by ten millions of dollars of venture capital for individuals who are testing for home care crisis’s tech-based solutions.

Private rates are quite low, provided the precedent set by the person’s ability to pay and public pay rates.

With the ageing of the Baby Boomer generation, the small private pay is decreasing as only a few can afford long term care. Almost in all states, the home care’s annual cost is more than 100% of state median wages. It means that today, those in the private pay market can find themselves in the public pay market tomorrow.

Katrina Kazda and Nic Miragliuolo. Citing Sources in APA Format. Retrieved


One reply on “Solving the Home Care Crisis”

Leave a Reply



Share on facebook
Share on twitter
Share on linkedin

Recent Posts


Change someones life today

Become a Caregiver Today.

You too can make someone smile. 

%d bloggers like this: