According to the Population Reference Bureau report, "The number of Americans ages 65 and older is projected to more than double from 46 million today to over 98 million by 2060, and the 65-and-older age groupís share of the total population will rise to nearly 24 percent from 15 percent."
Are you ready to buy your first Elderly Care Home?
Assuming you already have an interest in the Elderly Care Home industry and have a general idea as to what a care home is; here are some tips when looking at a care Home to purchase:
1) Use your senses.
a) How does the home or facility smell? Does the home smell of urine and fried food or roses and chocolate cake?
b) How does the facility look from the street? Is the facility nice and tidy or full of weeds and junk? First impression is everything in this industry.
a) Do the Employees greet you at the door professionally and with authority or do they appear tired and disinterested?
b) Do the Employees protect their Residents privacy and watch over you carefully or give you free reign to tour the home as you wish?
a) Now please be very careful here and do not disturb the Residents, but do the Residents look happy and content or are they in bed and unattended?
b) Are the Residents asking for help and fidgeting or relaxing in a big Lazyboy enjoying an old movie?
4) Books and records, Medication management and safety requirements
a) Unauthorized personnel are not allowed to view Residents and Employee files, but does the facility have all files nicely organized and presented in a professional manner?
b) Do you see fire extinguishers and an evacuation plan hanging on the wall along with emergency contacts?
c) Are the medications in a secure area, well organized and with appropriate forms for documentation?
d) Does the home appear to be Elderly friendly with hand rails, custom toilets and showers? How about ramps leading into or out of the home?
In addition to the above, check out:
5) What's the reputation of the facility?
a) A great resource for checking on a facility is the California Department of Social Services website. They offer a free site that provides basically a report card of all Care Facilities in California.
b) Call placement Agencies and see if they know of the facility and what is the reputation of the facility.
6) With permission from your Broker ask to speak with the Seller direct to find out why they are selling, what challenges they have had in the business and what they (the Seller) see as future growth opportunities.
7) How are the Employees paid? W-2 or 1099? This will affect your bottom line and exposure.
8) When was the last time Resident monthly charges were increased and for what reasons?
9) How long have the Employees been at the facility?
10) Any violations or troubles with Department of Labor?
With proper due diligence and business planning you can get off to the right start and enjoy a solid business within a growing industry.