6 Home Care Business Trends and Developments Predicted to Define 2023
Published on February 2, 2023 by Sharon Morrisette
The home care industry is growing year by year, and the demand for non-medical home care is definitely here to stay. This results from a growing aging population and the vital role home care plays in supporting health care services.
By 2050, the population aged 65 and over in the US is projected to surpass 80 million. However, people age differently than they did a decade ago as technology advances.
Studies show that life expectancy is increasing by 2.5 years every decade, with seniors largely preferring to remain at home.
With a lot of potential on the horizon, home care businesses must secure their growth by being proactive and staying on top of trends and developments.
If you want to continue growing your home care business, take note of these six home care trends predicted to define 2023.
1. Demand for home- and community-based care services will continue to grow
Thanks to the technological advancements in the medical field, people are living healthier lives and can largely take precautions before their health starts to deteriorate.
Therefore, home care services – either in their original home or via senior living communities – is a sure way for the Boomer and Gen X generations to reduce reliance on hospital care and maintain as much independence as possible, today and in the future.
At the same time, more people are opting for care at home and community-based care since the Covid-19 pandemic, which has significantly popularized home care services.
Consequently, there is no doubt that the demand for home- and community-based care will continue to grow in 2023, offering many opportunities for business expansion.
2. Workforce shortages and wage growth will continue
Nearly 10,000 Americans turn 65 daily, increasing the need for healthcare professionals and home care services to take care of them. One of the most significant struggles in the health and home care industries is the ongoing labor shortage.
Finding and retaining caregivers is difficult for home care providers when many are either leaving the profession or dealing with burnout due in part to the pandemic. As the demand for caregivers increases, providing higher wages will be necessary.
At the same time, the ongoing economic situation is already influencing wage growth and demanding additional strategies to keep caregivers and healthcare professionals in the industry.
As a result, workforce shortages, wage growth, and rising costs will continue to pose challenges for many home care providers in 2023, but those who address them with a long-term mindset and additional innovative strategies will emerge as winners.
3. Home care services will see a pricing increase
With many sectors feeling the pinch of inflation, most businesses are set to increase their prices for continued revenue growth. As a result, we are likely to see the cost of care increase between 15% to 40%.
Although cutting costs generally goes hand in hand with economic uncertainty, home care providers are likely to see their overhead costs increase in a bid to attract and retain caregivers and maintain the highest standards of care.
Those who invest in the right technology solutions, find smart ways to reduce their operating costs and manage to retain their caregivers will get ahead in 2023. For example, using an all-in-one software solution like Smartcare allows home care businesses to cover all aspects of their operations, and eliminates the need for additional software.
4. Providers will invest in differentiators, leveraging technology
Adopting leading home care technologies is increasingly necessary for providers who want to differentiate themselves in a highly competitive market.
The right home care software can enable home care businesses and their caregivers to deliver better care, improve communications, enhance client and family engagement, and minimize admin work by automating certain tasks and simplifying others.
For caregivers, home care software can strengthen relationships with clients and their families and simplify scheduling, care, and documenting tasks.
For home care providers, it can support all their administrative responsibilities, from compliance measures to accounting. In addition, they can track expenses and pay caregivers for mileage, travel time, and holiday pay easily.
The benefits of home care technology, such as Smartcare Software, include more than optimizing back office systems and eliminating repetitive tasks. It also provides KPI data and analytics to make data-driven business decisions and plan a realistic growth strategy.
In 2023, we will continue to see the utilization of more technology within home care. Going forward, home care will also get smarter thanks to wearable technologies, smart home features, and advanced communication tools.
5. Providers will prioritize continuous caregiver career advancement and training opportunities
In 2023 and beyond, investing in your caregivers will be more important than ever to combat labor shortages.
Implementing training and upskilling programs for your caregivers is crucial to improving caregiver retention, which is necessary for a home care business to survive and thrive. Studies show that the key to attracting and retaining the best caregivers is providing continuous support, career advancement, and flexible learning opportunities.
Home care providers will be looking to integrate educational tools and training resources into a platform, such as a mobile app, to make training easily accessible to caregivers who want to learn new skills or improve their knowledge.
6. There will be an emphasis on ‘Companionship’ as a service
No matter how technologically advanced we become, it’s the human component that makes home care so special for clients and caregivers alike. In 2023, home care providers will put emphasis on ‘companionship’ services.
Companionship goes beyond the expected services from home care and assisted living; it involves providing emotional support and friendship to seniors who may be dealing with grief, loneliness, or wanting a more satisfying social life.
Although your clients and caregivers may already have a strong bond, sometimes additional time needs to be made for companionship. Therefore, recognizing this need and emphasizing it more as a service is already becoming a trend among home care providers.
Companionship is shown to increase the value of home care services and can open up a new avenue for home care providers to expand their offerings in 2023.
How can Smartcare Software help in 2023?
Smartcare Software is a complete, cloud-based software designed for home care providers by home care professionals. We understand the challenges you face and are continually developing our software to address them, so you can focus on providing the very best care and growing your business.
Our products and solutions are proven to improve caregiver hiring, retention, and engagement, increase customer satisfaction and save you time with sophisticated automation technologies.
To learn more about how Smartcare Software can support your home care business in 2023, please give us a call or request a demo today.