What’s ahead for the home healthcare employment?
The home healthcare industry remains one of the fastest-growing in the United States, with no signs of slowing down. The US Department of labor estimates the profession will grow by almost 50% by 2022, which is close to five times faster than the average for all occupations.
Most home care positions require little training and often don’t mandate a high-school diploma, which can be an attractive option for those looking to break into the healthcare field without the time and cost of college. Home healthcare has its rewards, but there are also lots of cons. Low wages (median yearly wage is about $20,000), physically demanding environments, lack of full-time hours and no health benefits plague workers and lead to an extremely high turnover rate. A recent article in the Wall Street Journal notes that home healthcare turnover averages around 50% each year.
The primary contributor to industry turnover is pay. Demand for home healthcare staffing is strong… and getting stronger. To keep up with the pace, the homecare industry needs to make itself more appealing – starting with better pay and job stability.
Starting on January 1, 2015, the U.S. Department of Labor will require all direct care workers employed by staffing agencies and home care agencies to be covered by minimum wage and overtime protections. This sounds like a solid plan on the surface; however, this could backfire and actually cause home health workers to lose money. Caregivers often work lots of overtime to boost their paychecks, but the new law may cause homecare agencies to enact shorter shifts and cut back on overtime hours due to higher costs.
Even with minimum wage protections in place, the home health industry may still struggle with significant turnover while trying to appease increasing demand. Improved training opportunities may be another solution to reducing the turnover. If agencies provide non-medical caregivers with opportunities for additional training, employees may be motivated to use their home health experience as a stepping-stone to a more specialized career in the healthcare industry.
One thing is certain – the home health boom is coming. If better pay isn’t in your agency’s budget, now is the time to develop new and innovative ways to attract and retain the top caregivers.
Working capital to meet rising home healthcare staffing demands
Accounts receivable factoring for home healthcare is quick funding solution that helps home care agencies cover payroll on-time, every-time. Rather than worry about delayed payments from slow-paying customers, Medicare, Medicaid or HMO’s, factoring home care receivables can get you the funding you need to manage your growing business.