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Is "Uberization" a Threat to Senior Care Businesses?

By Jeff Salter

As new technology and consumer preferences arise, every industry must adapt. One adaptation that we've seen in recent years is "uberization." Uberization is a business model named after the ride-sharing app Uber. It changes traditional jobs into specific tasks that can be assigned to people as needed with wages set by supply and demand.

Just like automation, uberization can be a threat to many industries, but is it a threat to senior home care? It this type of service delivery the future of home care, or is it a step back?

Testing Uberization in Home Care

At its inception, HomeHero was hailed as the Uber of senior home care. HomeHero, a well-funded startup that used a smartphone-based app to provide, in their words, "the fastest, most affordable way to find in-home care for seniors" by using an Uber-like model to connect home care workers directly to families who need them.

The idea of on-demand senior care services seemed to be an appealing business model and potentially easier for consumers. Just sign into the app, select a la carte care services, and get assigned a caregiver to carry out the tasks. However, for HomeHero, this model didn't quite work as planned. HomeHero's rise and eventual demise shows senior home care has a certain level of immunity to these forces, but why?

While companies like HomeHero offer an efficient way to connect clients and caregivers, caring for seniors is an entirely different proposition than being "Ubered" home from the bar. Families want their elderly relatives to be protected and cared for, not surprised with rotating caregivers and inconsistent pricing. HomeHero failed not because of lack of funding, but because they did not understand the home care industry.

Why Uberization Might Not Be a Threat

With HomeHero as our example, let's take a look at some of the key aspects of the senior home care industry that make it more resistant to the uberization of services.

Personal Relationships

The home care industry naturally thrives on personal relationships. And this is true whether you are a retirement community, assisted living facility, nursing home, medical home health care company, or non-medical home care company. The senior population responds well to and craves meaningful, personal relationships.

Uberization of home care services essentially eliminates opportunities to build relationships. Care is provided by individuals at random, depending on who is available.

At Caring Senior Service, personal relationships are at the heart of our franchise system. Our local staff and even senior care franchise owners personally meet each family and develops a care plan with them. Then, the staff introduces each caregiver that will provide care. Families and clients know that our team is just a phone call or video chat away if they need anything at all.

Because of the importance of personal relationships in home care, it's not enough to just match a senior to a caregiver.

High Expectations

Both home health care and non-medical, in-home care can make vast differences in patient outcomes. However, Medicare and most insurance companies do not pay for in-home non-medical care. Since these are out-of-pocket expenses, families have higher expectations of the caregivers and companies in the senior care industry. These expectations may include more personalized service, a high-touch experience, and increased availability.

While many families take cost into consideration, they may not be willing to pay for out-of-pocket Uber-type care. They are often willing to pay a little bit more to ensure that their loved ones receive the high-quality care they need.

With today's advances in technology, you can't remove the human component from senior care and still meet these high expectations. There is plenty of room for technology to help assist our efforts. In fact, we utilize it through our proprietary software and Family Portal. But no robot can do what trained compassionate individuals can do.

RELATED CONTENT: High Touch Meets High Tech in Senior Care

Complexity of Care

While some clients may just need a few hours of help here are there to live independently, others require more intense care. The bread and butter of home care businesses tends to be seniors with multiple chronic conditions. We step in as senior helpers when responsibilities become too much for a family to take care of on their own.

These types of cases are often complex and require specialized care. The level of expertise, training, and personalization required to deliver quality care goes above and beyond what a typical Uber gig would provide.

While Uber-like services may be a good fit for seniors who can remain mostly independent, it is not a good fit for seniors with serious health conditions, like Alzheimer's, who require more hands-on, long-term care.

Regulation and Licensing

In many states, home care is subject to rigorous regulations and licensing requirements. These regulations are in place to help protect seniors and their families as well as home care agencies. They often include background checks, training and certifications for caregivers, and other requirements. Home care companies often have to keep detailed records of client accounts and caregiver shifts as well.

If you're a home care agency, you know how difficult it can be to work with some state agencies to get licensed and maintain licensing. Uber-style companies might struggle to become licensed and keep up with licensing requirements. After all, being a caregiver in many states isn't as simple as just having a driver's license.

Conclusion

All these points aside, there will always be changes and innovations that come to our industry. Home care franchises must be willing to adapt to new changes as they arise. This may involve big changes to our fundamental business model. But at the end of the day, our goal is to keep seniors healthy, happy, and at home.

We would love to talk to you more about the Caring business model and how it has been successful in multiple markets. Reach out to our team today.

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Tags: Home Care, Technology