Synergy Sells Franchises In Burgeoning Industry

PHOENIX, AZ (Wednesday, July 05, 2006) - Home health care is growing, and a Gilbert company plans to expand to capitalize on it.

Synergy HomeCare Franchising LLC sells franchises to buyers interested in running a Synergy HomeCare office. The independently owned and operated offices provide personal services such as housekeeping and bathing.

"Who wouldn't want to stay in their home?" asked Peter Tourian, the company's founder.

Since August, Synergy HomeCare Franchising has sold seven franchises. The company's goal is to bring that number up to 18 to 20 by year's end, Tourian said.

Val Halamandaris, president of the National Association for Home Care and Hospice, said the aging population, growth in technology and desire of people to stay in their homes are fueling the growth in home care.

Home care is estimated to be a $70 billion industry, including Medicare, Medicaid and hospice care. Medicare expenditures on home care are expected to reach $11 billion to $12 billion this year nationally, compared with $9 billion in 2004, he said. The number of people using Medicare for home care should reach 3 million this year, up from about 2.7 million people in 2004.

"Seventy-seven million people will reach 65 at once. That's going to put a tremendous demand on our services," Halamandaris said.

Synergy HomeCare Franchising is one of several home care companies with locations in Gilbert. Others include Banner Home Care and Homewatch Care Givers.

Banner Home Care, a division of Banner Health, is based in Gilbert and provides a range of services, including Medicare certified home health care work like nursing and rehabilitation, a home medical equipment service, and health aide services, like bathing.

Franchising is a recent phenomenon in home care, but companies that follow that model are ideally suited for it, Halamandaris said.

"A lot of the investors, who would be looking to get into home care services don't have to invest anything," he said.

A Synergy HomeCare franchise costs $35,000, and franchises have to pay 5 percent of annual revenues.

Mike Endredy has owned the Mesa Synergy HomeCare office for about a year, an office that covers the southeast Valley and Pinal County.

The revenues have been pouring in. Last year, the Mesa office's revenues were about $2 million. Endredy said this year's revenues are up 30 to 40 percent.

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