On today’s episode of A Drink With The Hurricane, Steve talks about why you should be offering live-in care.
I was skimming through the Home Care Pulse Report that came out earlier this year in May and I was looking at the revenue section. In this graph, they talk about businesses that are offering live-in care.
As you can see 60% of all private duty home care companies around the country do not offer live-in services, while only 40% do. And so I’m here right now ’cause I want to discuss some numbers.
My clients say to me “Steve, I want to grow my business to three million dollars.” Which three million dollars in total annual revenue is a milestone that I truly believe every single home care business in the United States can obtain if they do it smartly, no matter what market you’re in anywhere. Like you could be anywhere in the country and you can do three million dollars, no matter how rural or densely populated your area is. You could do more in more densely populated areas, but at least three million dollars no matter what.
In order to do that, you’re gonna generate basically a thousand hours of services from hourly care. So
Hourly care: 20 hours a week
40-56 hours a week
Monday through Sunday from nine to one.
That’s 28 hours a week. You’re gonna have a handful of cases like that to do three million dollars. I’m gonna say to get a thousand hours like that, this is gonna be about 40 clients or so, give or take, to be able to get your thousand billable hours like that.
Then, the next segment is your 24/7’s. You should have about a 1000 hours 24/7, right? These are your shift cases. You usually have three caregivers that are shifting out and it comes up to 24/7, which is basically 168 hours a week and so that’s six to seven clients that make this up. So now your census is still less than 50 patients and you’re gonna be doing the three million dollars.
Then the part that a lot of people miss or don’t focus on is converting live-in clients. You should have about a thousand hours a week live-in. And when you have a thousand hours a week live-in, ’cause a live-in is somewhere between 70 to a hundred hours a week, this is about 10 to 12 additional clients, which gives you a census of around 60 to 70 patients to do three million dollars in total annual revenue.
I share this with you because a lot of people get caught up with this and it makes sense. You know, 40 clients, a thousand hours. Well, it takes a lot of effort to manage and maintain 40 clients. It takes a lot less effort to manage and maintain six to seven, 10 to 12. So if you want to do three million dollars, you could also do three million dollars by having 120 clients that are all hourly, right?
But think about the manpower it takes to manage 120 clients. Three million dollars in return on investment might not be worth it for you to be able to do that because the amount of staff you’re gonna need to manage 120 clients, it may end up producing less of a return than it’s worth you being in business for.
So when you break it down correctly, yeah, these folks are gonna take the majority of your time. But you’ll still have a good mix of others. When I look at a three million dollar business no matter where you are in the country, I know you can attain 60 clients. And when it’s a good mix like this, there’s your three million dollars in total annual revenue.
So if you aren’t doing three million dollars a year, if you want to do three million dollars a year, if you never thought about this or you said you know, I really, I like what Steve is saying here. Six or seven of these, 10 or 12 of these, how do I do that? Pick up the phone. Give us a call so that we can show you how you can do this, and then you can BLOW AWAY THE COMPETITION!
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