The U.S. “Elder Care” service industry was a $249B segment of our economy in 2012 and projected to grow 5.2% per year through 2016 to $319.5B. Skilled nursing facilities are the largest segment of the market, but home health care services and assisted living facilities will see the most rapid growth.
Industry services are comprised of these types: skilled nursing care facilities, home health care services, social services, continuing care retirement communities, assisted living facilities and by provider – for-profit, non-profit. All these services are paid through Medicaid, Medicare, private insurance and out-of-pocket.
There will be approximately 72 million people over the age of 65 in 2030, and more than 81 million just 10 years later in 2040. People of this age tend to require assistance because of the natural decline of physical and mental capabilities. The Bureau For Labor Statistics projects that the growth of industries related to the care of the elderly will occur at a rate of 70% between 2010 and 2020.
Currently, there is a complex fabric of care services and resources – both public and private – designed to support seniors and their families with assistance at the national, state, regional and local levels. Navigating and connecting to these alternatives has given rise to a growing business segment of evaluation and placement services, to which A Right Place For Seniors belongs.
With the aging population, it will be less common for a family member to take care of a senior as it is now, placing a greater burden on younger family members. An increased need for nursing home, home health care and resources will require more evaluation and placement services like A Right Place For Seniors. There were 11 possible caregivers for each family member requiring care in 1990. By 2050, this ratio is project to be four to one. The care of seniors will increasingly fall on outside (non-family) service providers, hence the incredible growth in the Senior Care Services.
The vast majority of providers in five long-term care services sectors were in metropolitan areas. This distribution reflects the higher population density in these areas. (Figure 2)