If you’ve been on the fence about opening a business in this space, there has never been a better time. We’ll break down some of the things you’re currently thinking about and why entrepreneurship in this space is the right choice—and now is the right time.
There are 10,000 members of the Baby Boomer generation that are turning 65 every day. They will, in one form or another, need long-term care services. The costs of care are rapidly increasing across the board, and caregiver registries are able to facilitate care more affordably by matching clients directly with caregivers.
Learn more about the benefits of owning a caregiver registry.
It sounds like it’s hard to find caregivers nowadays.
There is an ongoing narrative about a caregiver shortage. However, many caregivers are dissatisfied with their roles, working at multiple companies simultaneously, and looking to exit healthcare altogether.
The top three causes of caregiver turnover are:
- Communication
- Pay
- Scheduling
Each of these three points is nullified when working with a caregiver registry. The communication is handled directly between the caregiver and their client once they’ve been brought into your roster. Secondly, caregivers negotiate their pay rate directly with clients and families, ensuring transparency and affordability on all fronts. Thirdly, caregivers work directly with families and clients to determine an adequate schedule that meets everyone’s needs.
Finding work through a caregiver registry is one of the most effective ways to keep caregivers engaged and working in the healthcare space.
The top three causes of caregiver turnover, in your case, can actually be your top three selling points in finding caregivers to find work with you. Double down on the fact that you’re a registry and empower caregivers to be entrepreneurial and self-sustaining.
I don’t want to compete with established home care competitors.
Home care providers have their own lane of business because they either have private pay clients (at a rate that most families can’t afford) or contract with third-party payers for qualifying Medicaid, VA, or Long Term Care Insurance clients.
It can be an uphill battle for home care companies to find clients whether it’s private pay or third party. There is also the 80/20 rule in play, which could potentially slash home care agency margins by 80% when they’re already low.
In terms of competition, most families are agnostic about the business model. Families are concerned with having someone with their loved one when they say they’re going to be there, at a rate that is sustainable. Those concerns are solved with a caregiver registry.
The average homemaker rate for 2023 (home care agencies) was $30 an hour. There isn’t a regulating body or database for caregiver registry rates, but they typically start at $15 per hour and go up from there, depending on care needs and experience, etc. Either way, families may need care for a long time and they might not budget enough funds for the entire duration their loved one needs care.
This makes finding care through a registry attractive when a family can:
- Facilitate the selection process and ask the questions they want
- Communicate directly with the caregiver in real time and share updates
- Make schedule and rate changes as needed
Ally Feature: Use Ally’s Family Room feature to enable families and caregivers to create care plans that adequately reflect the client’s needs and to communicate in real-time.
Rather than worrying about the competitive landscape, focus on what your caregiver registry can do differently.
I don’t want the liability.
That’s more than understandable. Opening any business has some form of risk, but what you need to ask yourself: “What business is most worth going through the processes for?”
In the caregiver registry realm, the caregivers you work with are independent contractors. This model of care relieves you of the traditional liability and risk that traditional home care agencies are on the hook for.
Of course, you don’t want caregivers to mess up or burn a bridge with a family. However, your involvement in the relationship is to match a caregiver with a family (and vice versa), and if something happens, you can match them with another one.
In terms of liability, caregiver registry owners have much lower liability risk than other business owners in this space.
Most software programs in the home-based care space were built for W2-based, home care agencies. With caregiver registries being in a different part of the business, you have different needs from a compliance perspective, like getting rid of care planning features and issuing payments.
Ally is the first and only registry management system built specifically for caregiver registries.
Aside from your registry management system, we also recommend enlisting the help of a business attorney like Polsinelli, who specializes in this space and can share pointed guidance on best practices and what you should do to avoid a DOL audit.
READ MORE: Ally Enables Caregiver Registry to Feel Prepared
when Hit with an Unexpected DOL Audit.
Ally also stays on top of the regulatory and compliance landscape in registry care space, and you can get caught up to speed with this ebook: Home Care Registry Compliance Crash Course. We’re not just a technology company, we’re a partner and resource for you, every step of the way as you open your business.
Are you ready to get started?
Starting a caregiver registry is a fun and rewarding endeavor. And we look forward to helping you along and watching your journey.
Listen to Jeff Mannel’s story on why he started his caregiver registry, Atlee Care:
“I had been working my day job with a hospice care agency in Denver. One of my colleagues had been looking into the registry business model and needed a business partner. I thought there had to be a better options to provide quality care, especially in hospice. I knew there was a place for me within care in the home.” Read more.
If you’re ready to get your registry started, make sure that you choose Ally as your registry management platform of choice built with third-party payment processing and features that protect you from audits and regulatory challenges.
