If you search for the phrase “healthcare business for sale” online, you will get a wide variety of results. But where within the healthcare sector can you find the most growth, and how do you know which opportunities present the best investment opportunity? We will explore the five signs of a good investment in this blog. But first, check out the big picture on healthcare businesses.
The healthcare industry is a lucrative investment in the United States because the demand is more of a need rather than a want. As the pandemic has exhibited, healthcare is essential and a necessity — in good economic times as well as bad.
This sector has an estimated revenue of more than $1.6 trillion, of which a whopping 64 percent was generated by patient care, according to the National Health Expenditure Accounts. The healthcare industry accounts for nearly 20 percent of the overall gross domestic product.
There are quite a few healthcare businesses for sale — those that provide goods and services such as medical centers, medical equipment, pharmacies, medical insurance, and more. Some of the fastest growing businesses in the healthcare space are franchises that focus on senior home care, medical staffing and urgent care centers.
The franchise model has proven time and time again to be a successful path to business ownership, especially in a sector such as healthcare where owners might not have a medical background but want to be part of an essential and expanding industry.
With that in mind, here are several franchise markets in the healthcare space seeing the most growth.
Healthcare Business for Sale: Medical Staffing
Hospitals, nursing homes and other medical facilities are in constant need of qualified healthcare professionals and turn to medical staffing companies to help fill the open positions. Demand intensified during the pandemic. Healthcare staffing businesses list vacancies, recruit, refer and place applicants for employment. Medical staffing is a growing category in healthcare. In a report from Grand View Research. it is a $31.8 billion industry globally with a projected annual growth rate of 5.4 percent through 2027.
Healthcare Business for Sale: Senior Care Services
Home is where the heart is, apparently, for our nation’s aging adults.According to the U.S. Census Bureau, more than 83 million Americans will turn 65 — considered senior citizen status — by 2050 and will account for 21 percent of the population. Surveys suggest nearly 90 percent of the senior population wants to remain at home independently and age in place. However, they won’t necessarily be able to do it on their own. An estimated 85 percent of older adults have at least one chronic health condition, according to the Centers for Disease Control and Prevention. These conditions can lead to a loss of or reduction in mobility, which is where home care steps in.
Non-medical senior care businesses assist clients, mostly seniors, with activities of daily living such as meal preparation, light cleaning and companionship.
The global home healthcare market size is valued at $299 billion and is expected to grow at a compound annual growth rate (CAGR) of 7.88 percent through 2028.
Healthcare Business for Sale: Urgent Care
As a result of the pandemic, the demand for urgent care services has exploded. Urgent care is a more convenient, affordable and accessible healthcare option for patients, especially as there has been a shift away from the primary care office model. Urgent care centers are also seen as a better alternative to emergency rooms, which are notorious for long wait times and high medical bills. Because medical services are always in demand, an urgent care center is a stable and viable business venture.
According to the Urgent Care Association, there are nearly 10,000 centers in the United States by the end of last year — a 9.6 percent jump from the previous year. This expansion and the recent pandemic are expected to lead to a 3.4 increase in the already $38.5 billion industry this year.
5 Signs of a Good Investment
Now that you have some options to consider, here are five signs of a good investment to keep in mind when looking at healthcare businesses for sale.
Will the business continue to perform in a weak economy or possibly get stronger? Businesses in the healthcare space can make money in market downturns because they provide an essential service.
Recurring revenue stream
Does the business have opportunity for repeat customers? For example, studies suggest urgent care patients visit their urgent care center of choice approximately 2.7 times per year—or, once every 4 months.
Can the business handle increased market demand? Many healthcare businesses put this topic to the test during the pandemic. American Family Care (AFC), the leading national urgent care franchise company, saw patient visits skyrocket during the height of the COVID-19 crisis. The system pivoted and implemented a telehealth platform to provide virtual visits for patients with safety concerns.
Can a tech powerhouse come in and do it faster and cheaper? Despite the rise of telehealth, patients still want in-person visits with a physician. In fact, 80 percent of respondents to a new Harris Poll suggests they prefer face-to-face doctor appointments over telemedicine.
No experience necessary
While you do need some knowledge and training for the healthcare business you plan to operate, you don’t need a medical degree. At AFC, more than 60 percent of our franchise owners do not have a background in medicine.
Own a Business in Healthcare: How to get Started
One of the easiest ways to start a healthcare business is by way of a franchise. In the urgent care space, AFC is the market leader. In exchange for initial fees, AFC offers a complete package, including comprehensive training, marketing assistance, an established and trusted business name and full support for business set-up.
Apply now to learn more about owning an American Family Care Franchise.