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Private Duty Today
Welcome to Private Duty Today,
the bi-weekly electronic newsletter for Private Duty Home Care Leaders
from Leading Home Care ...a Tweed Jeffries company.
I'm Jason Tweed, Director of Business Development for
Leading Home Care, and Editor of Private
Duty Today.
Private Duty Today is published every
other Wednesday, and currently goes to over 8000 subscribers.
Private Duty Today is
a permission-based newsletter.
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Academy for Private Duty Home Care comes to Seattle in
April
Join us for the next Academy for Private Duty Home
Care in Seattle, Washington.
April 8, 2010
An upcoming academy has also been scheduled in Dallas in
May. Registration is now open.
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The year 2009 started with more questions than answers. We
were about to inaugurate a new President. The economy was in shambles,
and in steady decline. And for the first time non-medical home care
company owners didn't feel in control of their own destiny.
Our consulting firm was fielding calls on a regular basis
from CEOs who were looking beyond the walls of their business, many for
the first time.
They had questions:
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How much will the economy
affect my business?
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Am I getting my money's
worth from my franchise royalties?
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Is this a good time to
start a non-medical home care company?
·
Are my profits, and my
personal income, on par with others?
We've been watching trends for a decade, but admittedly,
our knowledge was primarily anecdotal. We know we get a skewed
perception of the industry. The CEOs who call consultants are facing
challenges, but also are savvy enough to know when to ask for assistance.
These questions were the catalyst that encouraged us to
seek data previously unavailable in the marketplace.
We began with a benchmarking survey of more than 100
companies whom provide private pay home care in a variety of sizes.
These companies shared financial data dating back to 2003, with the
greatest focus on calendar year 2008. This extensive survey collected
data on nearly 50 separate data points.
Analysis of the data answered many of our questions, and
as with any solid body of research, created some new questions for
future study.
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The results are in and analysis is complete. The first
step in our analysis was to identify and define a "benchmark
company" for private duty home care.
Stephen Tweed, CSP, authored the final
analysis and report. We asked Stephen to define the company that
private duty home care companies can use for comparison.
"A 'benchmark company' is defined as a private duty
home care company that has been in business for three years or more and
earned a profit in 2008."
Stephen also shared some of the study results that help us
see the "typical" company in a clearer light.
- A median revenue of
$1,466,731.
- A median gross margin of
40% after direct cost of care, or $586,692
- A median marketing and
business development expenditure of 3.5% of revenue, or $51,335.
- A median owner's
compensation of 13% or $190,675.
The
body of benchmark companies experienced revenue growth in 2008 ranging from
12% to 25%.
How did these companies experience double digit growth during one of
the worst economies in recent memory?
Based on survey analysis and his experiences with clients, we confirmed
that our Private Duty Business Builders Model is sound and the
27 elements of a successful private duty company are on target. This
collection of best practices focuses on the Three Pillars of Private
Duty; Promotion, People and Profitability.
Not only is this model successful, but it's also apparently more resistant
to the outside economic forces than we originally anticipated.
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The 2009 Private Duty Home Care Benchmarking and State
of the Industry Report is currently at the typesetter and on its
way to the printer.
 This best practices guide and
supporting data should empower a variety of private duty home care
stakeholders, for the first time, to compare themselves to an industry
snapshot.
- Private
duty company owners will be able to contrast and compare their own
financial data to the benchmark company. For the first time owners
will have the ability to compare their company to others of
similar size, type, age and primary sources of revenue.
- Franchise
owners can get a clearer perception of the value they receive for
their royalties.
- Franchisors
and membership networks will be able to document their own
performance versus the norm.
- Associations
and accrediting bodies will be able to see how membership and
accreditation can potentially affect their customers.
We are currently
accepting pre-publication orders that will ship by express mail
immediately upon arrival from the printer.
Additionally, pre-publication orders will be discounted.
Learn more about the 2009 Private Duty Home Care Benchmarking and
State of the Industry Report, its contents, and the
pre-publication offer.
Special note to 2009 study participants:
Watch your email. The steeply discounted report will be available to
study participants soon. Participants will be contacted directly by our
staff.
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Benchmarking research of this size and scope is expensive. We would
like to thank publicly an organization who is underwriting a portion of
this expense. The Accreditation Commission for Health Care
recognized the value of this data. Because of their financial support
we were able to offer the substantial discounts to participants.
On behalf of our firm and the private duty industry we express
gratitude for their support. If you'd like to learn more about ACHC,
please visit their website, www.achc.org.
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Join Jason Tweed in
Philadelphia, March 10
 I'm honored to have been invited to speak in my home area
of Philadelphia next week.
I'll be presenting Seven Elements of Successful Home Care from a
Customer Perspective on the opening day of the 2009 National Private Duty Association Annual
Conference.
I hope you'll join me for the program, and stop by to say hello
afterward. I get to meet many of you by telephone and through email,
but it's a rare opportunity for me to put faces to names.
For more information about NPDA and the conference, please visit their
website.
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Join Stephen Tweed in
Seattle, April 8
The busiest guy in home care, and the guy I call
"Dad" will be touring the country again this Spring. Here's a
rundown of upcoming private duty events where Stephen will be featured.
Philadelphia - March 10 - Stephen will introduce and interview me, Jason Tweed, at
the 2010 National Private Duty Association Annual Conference.
Seattle - April 8 - Stephen Tweed will facilitate the first West coast workshop of the Academy for Private
Duty Home Care. Sponsored by the Home Care Association of
Washington.
Dallas - May 5 - The Academy for Private Duty Home Care
will visit the great state of Texas in May. Hosted by
the Texas Association for Home Care & Hospice.
Nashville - August 12 - Franklin, Tennessee will be the site
of the Academy for Private Duty Home Care hosted by the Tennesee
Association for Home Care.
Register for the Academy for Private Duty Home Care
and learn more about these workshops, as well as discounts available to
state association members.
Thanks to our sponsors:
Please visit their websites from the Academy homepage.
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