CRISIS IN THE HOMECARE INDUSTRY: Who will take care of us?
By 2030 1 million more caregivers will be needed to care for an ever-increasing elderly population.
Senior care is the fastest growing industry in the nation.
Due to a business model based on profit rather than the well-being of clients, caregivers are faced with:
- low pay
- poor supervision
- few benefits
- strenuous travel schedules
- demanding workloads
- inconsistent scheduling
- part-timer work
- lack of training and support
- and few advancement opportunities
As a result:
- 50% of direct care workers leave the job within 12 months.
- Home care agencies have an average turnover rate of 67%
- The median hourly wage is $10.11.
- The median annual income for direct care workers is $13,300.
- 24% of direct care workers live below the poverty level.
- Over 50% rely on some form of public assistance.
- 26% of home care workers are uninsured
The True Costs to our Seniors and Disabled
- Inadequate care due to inconsistency in care teams (high turnover rate)
- Seniors’ desire to live at home is not realized
- Life savings depleted
- Families are forced to give up outside employment to care for loved ones at great personal and financial sacrifice.
Caregiver-Owned Cooperatives are the solution to the home care crisis.
- Worker-ownership means living wages and a say in the quality of services provided
- Members have a voice in how the business is run.
- Membership provide caregivers with opportunities to increase business and other life skills.
Case Study: Peninsula Homecare Cooperative, Port Townsend, WA
- Started in 2016 by 5 self-employed caregivers
- Showed a profit in the third quarter of operations
- Paid off start-up loans in 18 months
- First dividend distribution paid to members in the second year
- Base pay $15 per hour raised to $22 with profit sharing
- Low turnover rate
- Respected in the health care community
The Impact: Who benefits?
- Elderly and Disabled
- Highest quality care (team, highly trained, low turnover)
- Increased independence (PAM)
- Less/optimized cost of care
- Families of Elderly and Disabled
- Reduced personal and financial sacrifice
- Living wage, Profit-sharing, Benefits, etc.
- Children of Caregivers
- Higher quality of life, better outcome for community
- The Community
- Reduced use of public health and other social services by caregivers and clients
- Improved health outcomes
Uses of Funds
70% Loaned to Cooperatives
- Loan funds attributed to you, the social investor, in perpetuity (e.g. Miller Family Fund)
- Mid-term loans @ AFR % rate; interest-only for 2 years
30% Management and Consulting
- Mission: Develop and maintain a network of home care cooperatives that
- share many administrative and marketing costs
- constantly improve operations and quality of client services
- create wealth for their worker-owners.
- Staff: Director of CoOperating Systems, Director of Cooperative Development, Content Consultants as needed
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