Potential For Growth And Success Stimulates Interest In Private Duty Home Care

Private Duty Franchisor Expands on an International Level

(Tuesday, February 28, 2006) - The U.S. Department of Labor recently named home health care services one of the fastest growing sectors of the U.S. economy resulting in an increasing focus on private duty home care – medical and non-medical services not covered by Medicare or Medicaid. While the demand for private duty care is driven mostly by senior citizens, recipients include the disabled and those recovering from illness or injury and span all age groups. According to the Congressional Budget Office, of the $135 billion in the U.S. spent on long-term care for senior citizens, $45 billion was paid directly by consumers.

Significant growth is expected for the private duty industry due to the more than 34 million people in the U.S. who are 65 years or older and the anticipated increase of this age group's population to include more than 70 million by 2030. As the baby boomer generation ages, the demand for in-home care services is expected to increase by 50 percent between 2002 and 2012 according to the Bureau of Labor and Statistics.

This growth is one of the factors that prompted Peter Tourian to establish a franchise of private duty providers called Synergy HomeCare based in Gilbert, Arizona. Tourian began his career staffing nursing homes and assisted living facilities, but saw private duty as a solution to the increasing need for an alternative to inadequate institutional facilities. Since founding Synergy in Mesa, Arizona in 2002, Tourian's company has experienced rapid growth thanks in part to word-of-mouth referrals and satisfied repeat customers.

With six offices and expectations of expansion, it is one of the largest and most sought after home care providers in Arizona. Synergy's five year goal is to open over 300 franchises in North America, Europe, Japan and Australia. Thanks in part to the growing acknowledgment that private duty is one of the fastest growing industries nation-wide, Synergy has been able to place high-level executives from other industries at top positions within their franchises including the recent addition of a nationally recognized hospital CEO.

Tourian credits much of his company's success on its ability to maintain a customer focus and recruit and train appropriate staff. While it seems self-evident that customer service is the driving force behind service based companies, not all companies have realized that their ultimate success is driven by the customer. Tourian said that of the companies that he has seen fail, most have failed due to poor customer service and lack of training for caregivers.

Synergy employees undergo a rigorous screening process and training process. Screening includes a thorough background check for felonies, incarcerations, driving history and child support delinquencies. In addition, prospective employees go through a health screening and must have all necessary immunizations. On average, Tourian's staff members spend 20 hours a week with each client in their home and it is critical that a trust in the caregiver is established with not only with the agency, but with the customer as well. Before Synergy caregivers go out on their first call, they go through multiple training sessions including CPR, basic medical training and customer service. Synergy's care givers are all bonded and insured, and undergo an extensive training program that was developed by the company, said Tourian. Synergy's training is ongoing, said Tourian, and many of the company's employees have previously worked to some extent in the private duty home care field.

As in any private duty company, it is the caregiver that represents the company and therefore is responsible for repeat sales and customer satisfaction. "Customer service is one of the key attributes to a successful organization. Other than that, it's caring about what you're doing – taking calls from clients and maintaining a relationship with your customers. There are still customers who call in and ask to speak to me. No matter how busy I am, I take their call because their business has helped make this company," said Tourian.

In addition to capitalizing on repeat business, Synergy also has added to its breadth of services to increase business and targets all age groups. Synergy's caregivers, including companions, homemakers and personal care aides, assist clients primarily at home but will also assist customers in hospitals and other care-related facilities. Tourian is also considering adding medical services but warned that most private duty agencies are not equipped to handle the implications, such as liability and billing, of offering medical services. To Tourian, the opportunities for expanding his services are numerous as the demand for all types of services is increasing along with the demand of standard private duty offerings.

Tourian added the demand he sees within his own company mirrors that of the industry as a whole. "I know quite a few of the competitors and based on the demand they see with their offices in various locations, the whole industry is growing. We all know about the growth expected from the Baby Boomers, and we see the demand already. The population is aging and there is a great demand now that is only going to get greater with years to come. We know the industry has a need, we just need to prepare for it."

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