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With any B-Plan Purchase
425 Page Capital Directory
Through Apr. 30


Custom Business Plan
$425 Flat Rate
No Templates Used
7 Day Turnaround

All Purchased Plans
Are Updated for 2017

Home Healthcare Agency SWOT Analysis

 

Strengths

 

The costs of operating a home healthcare agency are generally very low. As more and more Americans become 65 or older, the demand for these services is expected to increase substantially. As such, there are many benefits for operating a home healthcare agency. Foremost, their revenues are immune from negative changes in the economy as these services are in demand regardless of whether their is economic growth or a recession. One of the reasons why many people are drawn towards home healthcare agencies is that they are able to receive reimbursements from insurance companies and publicly funded healthcare systems. These businesses can be scaled. The barriers to entry are moderate given the licensure requirements for these businesses.

 

Weaknesses

 

Given all of the above benefits of operating a home healthcare agency - a number of businesses have entered this market.  This is one of the primary issues that any company within this industry will face moving forward. Additionally, there is currently downward pricing pressure on their per hour and per diem fees. One of the ways that this can be remedied is by hiring nurses and in-home care aides that have specialized training. The insurance costs associated with home healthcare agencies is significant.

 

Opportunities

 

Home healthcare agencies expand their operations by hiring additional nurses and in-home care aides in order to service a greater number of patients. Additionally, many businesses hire nurses that have specialized training in palliative care. This type of treatment is currently sought by a number of families that have people that are near the end stages of their lives. Operators of home healthcare agencies can also aggressively expand by acquiring companies that operate identical or substantially similar businesses within their targeted markets.


Threats

 

As with any healthcare business, the primary threat faced by these companies is the reduction of reimbursement schedules among private insurance and publicly funded healthcare systems. This is the primary operating risk faced by these businesses outside of competitive threats. It is expected that the educational requirements for CNAs and registered nurses that work within these businesses within remain the same.


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