Competitors Come Home Instead
by March 19, 2001 12:00 am 94 views
Nursing homes have become only one option for elders and their families as assisted living companies gain momentum. Mark and Kristine Stanley recently opened a Rogers franchise of Home Instead Senior Care, a Care Northwest Ltd. competitor based in Omaha, Neb. Home Instead began franchising in 1995, and now has more than 295 locations in 43 states.
Targeting the same demographic — seniors who require aid to continue living independently — Care Northwest and Home Instead offer similar in-home services. Both companies launder clothes, cook meals, perform light housecleaning duties and offer occasional transportation.
Because more than 4,000 people ages 75 and older live in Washington County, the companies have a strong local target clientele. They also charge relatively similar fees. Care Northwest charges $13 per hour, and Home Instead bills $12.75-$14.25 per hour, depending on the client’s needs.
However, the two businesses’ strategies differ. Care Northwest, which will begin franchising its non-medical care system within a month, serves both Medicaid and private-pay customers. About 40 percent of the clients pay privately and 60 percent use Medicaid. Home Instead in Rogers does not currently accept Medicaid clients, but they are covered by some long-term-care insurance benefits.
Care Northwest owners Leigh and Candra Davis hire care assistants as independent contractors, and Home Instead hires employees. Each of the Stanley’s 10 employees are fully bonded and insured for liability.
As a company, Care Northwest is insured for liability, but employees must make their own provisions for the steep income taxes that accompany independent contracting. The Davises offer an optional benefits program that withholds a payroll deduction for the contractor’s choice of health and life insurance and retirement and investment funds.
Starting costs for the Rogers Home Instead were about $30,000, which included a $17,500 franchising fee, Mark Stanley said. The Home Instead main office also receives 5 percent of each location’s gross sales.
More information about Home Instead is available at www.homeinstead.com.