private duty home care: a complicated profile of fragmentation and untapped value
TRANSCRIPT
Private Duty Home Care: A Complicated Profile of Fragmentation and Untapped Value
A Wyatt Matas Webinar
Private Pay Home Care Deceptively Complex
At first glance, the private pay home care business seems as simple as deploying aids to homes.
Small Market Barriers• Low barriers to entry• Lack of differentiation• Price competition• Limited access to capital• Proliferation of franchises
Aides Client Homes
Home Care Specific Barriers• Access to field staff• Multi-sided business model
But closer inspection reveals a list of barriers to growth:
Investments Going to Market DisruptersInvestments are pouring into the industry, but are funneled almost
exclusively to the technology-enabled market disrupters.
Tech-enabled platforms disrupting the traditional model; receiving $140M in investments in 30 months.
Traditional private duty models struggling to access capital.
$140M
Owners Compete for Patients and Staff
• 60% staff turnover rates – the highest in healthcare
• Price reductions to win business
Proliferation of agencies
?
Glass Ceiling for Home Care Revenue
~25 agencies have achieved revenue
greater than $20 million
Private Pay Home Care industry estimated at
11,000-17,000 agencies
Overcoming Barriers to Growth
Many see technology as the answer to scaling a private pay home care business, but it’s not the only answer. Through research and interviews, we’ve identified 8 keys attributes of high performing home care agencies and have written a white paper describing the industry challenges and paths to growth.
?Private Pay Home Care: A Complex Profile of Fragmentation and Untapped Value
Table of Contents
Profile of Fragmentation
Why There Aren’t More Large Home Care Companies
Overcoming Market Dynamics to Reach Scale
Big Capital Flows into Private Duty
Opportunities for Capital Deployment in Home Care
Email Chip Measells for a copy of the white [email protected]
Notable Venture Investments in Private Duty Home Care
?
01/01/2014
02/01/2014
03/01/2014
04/01/2014
05/01/2014
06/01/2014
07/01/2014
08/01/2014
09/01/2014
10/01/2014
11/01/2014
12/01/2014
01/01/2015
02/01/2015
03/01/2015
04/01/2015
05/01/2015
06/01/2015
07/01/2015
08/01/2015
09/01/2015
10/01/2015
11/01/2015
12/01/2015
01/01/2016
02/01/2016
03/01/2016
04/01/2016
05/01/2016
06/01/2016
07/01/2016
08/01/2016
09/01/2016
10/01/2016
$0.2
$11.0$11.0
$3.0$0.4
$20.0$22.1
$5.0
$0.7
$32.5
$42.0
$3.1
In Millions
Notable Venture Investments in Private Duty Home Care
?
02/0
1/20
14
06/0
1/20
1407
/01/
2014
09/0
1/20
14
01/0
1/20
15
04/0
1/20
15
06/0
1/20
15
11/0
1/20
15
01/0
1/20
1602
/01/
2016
08/0
1/20
16
10/0
1/20
16
$0.02 $11.02$22.02
$25.02
$25.37$45.37
$67.47
$67.47$68.17
$100.67
$202.67
$205.77
Cumulative Investments in Millions
*
Venture investments have been made in private duty market disrupters in almost every quarter since Q1 2014.
* Investment made for undisclosed amount