The Positive and/or Negative Effects of an Economic Slump on a Health Care Franchise Business
Are there recession-resistant franchises? Just how stable is franchising in the midst of economic downturn and massive job losses?
Despite the recession, franchising has continued to perform well. In fact, it has been observed that more franchise concepts have been created out of the increasing need of the consumers for economic survival. This influx of franchises has been in practically every vertical, with women-centric and food related franchises leading the way.
But, where does health care fall in this mix?
The fact that people get sick and need care will remain regardless of an economic recession. Thus, it can be argued that the health care industry is near-recession proof. In addition to this, the population is currently aging, more obese, prone to unhealthy diets, and demand better health care. With 32 million Americans gaining access to health care coverage in 2014, the $2.5 trillion spend on health care (expected for 2011) is anticipated to increase dramatically in coming years. These health care industry statistics are compounded with the fact that 15 percent of physicians are expected to retire in the next three years. With this need for services, increase in industry revenue and loss of care providers, there is great opportunity for businesses willing to build and serve the growing health care needs of our population.
Another reason the health care industry is near-recession proof is that the jobs are not going to be outsourced. With record number of people entering assisted living facilities or choosing to receive home care – these positions will remain at home in the U.S. and the jobs that support the industry won’t be outsourced as long as people choose to live in the U.S.
Health care franchising offers a unique business opportunity and health and fitness is the second fastest growing segment in franchising right after restaurants which account for one-third of all franchises in the U.S.
Franchising is a good fit for health care because two of its’ strong suits: efficiency and consistent user experience. Customer service is a touchstone for many franchisors, while health care providers as a group are not known for being customer-centric. By having a strong focus on delivering the very highest level of care, strong existing health care franchises with this priority and focus are poised for increased growth.
Prospective franchisees just have to be careful in making their choice as there are quite a number of things to consider before making a decision. It is best for them to gather vital pieces of information on the target franchise opportunity through research and due diligence. Additionally health care industry franchises warrant further investigation due to high consumer demand and resistance to economic recession.