Healthcare Franchise & Business Opportunities
Healthcare Industry
General Healthcare Industry
The Healthcare industry consists of companies that provide good and services such as medical services, manufacture medical equipment and drugs, medical insurance, and more. The industry facilitates the provision of health care to patients, treating them with curative, rehabilitative, preventive, and palliative care.
The U.S. Healthcare industry has an estimated revenue of over $1.6 trillion, of which 64% of it was generated by patient care. The industry has over 784,000 open firms and supports around 17 million jobs. In addition, the U.S. is the country that spends the most with health care, over $10,200 per capita. In addition, the industry accounts for close to 20% of overall gross domestic product (GDP).
Healthcare Industry Trends
Companies within the U.S. Healthcare industry prioritize medical technology, research, and innovation. Health care companies are now implementing payment models that help not only providers but also payers and patients achieve the best outcomes at the lowest cost. In addition, the industry is seeing a change in patient demographics and consumer expectations. Consumers are demanding transparency, convenience, access, and personalized products and services. Thus, companies are investing in technology, enabling increased financial independence for patients and improving interactions with their health care systems. Internet of Medical Things (IoMT) has being used to help streamline health care delivery and align it with changing consumer preferences while lowering the costs of operational and clinical inefficiencies by $100 billion per year
Key Healthcare Industry Numbers
0
%
Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the small business owner including interest, indicating financial strength.
0
%
Charge Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the small business owner.
0
:1
SBA Loan Success Ratio
For every 16 SBA loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Non-Franchise Businesses taken into account: 43,447
Franchises in the Healthcare Industry
The healthcare industry can be a secure investment opportunity as the demand is more of a need rather than a want in the U.S. population. Over 96% of the U.S. population over the age of 75 has a chronic disease, and needs additional support by healthcare providers. Senior Care Franchises Many seniors now prefer living at home rather than transitioning to a traditional nursing home, but will require extra care from home senior care. Businesses in the home senior care industry have grown over 4% per year since 2011.
Different types of businesses in the healthcare space include but are not limited to urgent care centers, hospice, and medical staffing. The healthcare industry will continue to grow as baby boomers enter the maturing age. Senior citizens are the fastest growing population segment in the U.S. The services provided can vary between specialized nursing care, medical staffing, living assistance, and more.
Healthcare Franchises: Urgent Care
Urgent care services have also grown as it is more convenient for patients who cannot wait and need immediate care, especially as there has been a shortage of primary care physicians. There will also be an increasing demand for urgent care centers as more people will be insured due to healthcare reform. According to IBIS World, the total revenue for urgent care centers in 2019 was $28 billion.
Healthcare Franchises: Medical Staffing
40Medical staffing has also become a growing subcategory in the healthcare industry. According to the World Health Organization, there was a shortage of 7.2 million healthcare workers in 2013, and is only expected to grow.
Healthcare Franchises Industry Cost and Analysis
At Vetted Biz, we have reviewed and analyzed over 2,900 businesses and franchises. For the businesses we have studied in the healthcare space, we have seen a range of investment amounts that can start at $2,000 and can go all the way up to $1,964,000. For these businesses, the average royalty fee is around 6.4% of the gross revenue, and the average marketing fee is 2.4%. When conducting the SBA analysis for the 7(a) loans disbursed from 1991 to 2019, franchises in the healthcare industry had a paid in full rate of 40.1% and a charged off rate of 5.5%.
Average Healthcare Franchise Industry Percentage Fees
0
%
Royalty Fee
0
%
Stability Rate
0
%
Marketing Fee
0
%
Growth Rate
0
%
Failure Rate
Standard Healthcare Franchise Industry Investment
$
0
K
This metric is the standard industry investment amount for a single unit franchise investment in this industry. Our research and analytics team analyzed over 80 franchise concept investment breakdowns in order to calculate this figure.
0
%
Paid-in-Full Rate
The Paid-in-Full Rate is when the SBA loan is fully paid off by the franchisee including interest, indicating financial strength.
0
%
Charged Off Rate
The Charged Off Rate is the SBA loan default rate where loans have no confidence in being paid off by the franchisee.
0
:1
SBA Loan Success Ratio
For every 10 SBA franchise loans fully paid including interest, 1 SBA loan was unable to be paid back, or defaulted.
-SBA Loan Data from 2010-2019
-Franchise Businesses taken into account: 1,584
Sample Healthcare Franchise Income Statement
| Year 1 | ||||
|---|---|---|---|---|
| Base | % of Revenue | High | % of Revenue | |
| Sales | $ 242,000 | 100% | $ 311,00 | 100% |
| Cost of Goods Sold | $ 121,000 | 50% | $ 155,500 | 50% |
| Gross Profit | $ 121,000 | 50% | $ 155,500 | 50% |
| Expenses | ||||
| Rent | $ 12,000 | 5% | $ 12,000 | 4% |
| Utilities | $ 2,400 | 1% | $ 2,400 | 1% |
| Marketing / Advertising | $ 9,700 | 4% | $ 15,600 | 5% |
| Insurance | $ 25,200 | 10% | $ 25,200 | 8% |
| Royalties | $ 17,000 | 7% | $ 21,800 | 7% |
| Salaries / Wages | $ 29,200 | 12% | $ 29,200 | 9% |
| Repairs and Maintenance | $ 500 | 0% | $ 500 | 0% |
| All other expenses | $ 5,900 | 2% | $ 5,900 | 2% |
| Total Expenses | $ 101,900 | 42% | $ 112,600 | 36% |
| Owner Benefit | $ 19,100 | 8% | $ 112,600 | 14% |
| Net Profit Margin | 8% | 14% | ||
| Year 3 | ||||
| Base | % of Revenue | High | % of Revenue | |
| Sales | $ 564,000 | 100% | $ 787,000 | 100% |
| Cost of Goods Sold | $ 282,000 | 50% | $ 393,500 | 50% |
| Gross Profit | $ 282,000 | 50% | $ 393,500 | 50% |
| Expenses | ||||
| Rent | $ 12,000 | 2% | $ 12,000 | 2% |
| Utilities | $ 2,400 | 0% | $ 2,400 | 0% |
| Marketing / Advertising | $ 22,600 | 4% | $ 39,400 | 5% |
| Insurance | $ 25,200 | 4% | $ 25,200 | 3% |
| Royalties | $ 39,500 | 7% | $ 55,100 | 7% |
| Salaries / Wages | $ 58,400 | 10% | $ 58,400 | 7% |
| Repairs and Maintenance | $ 500 | 0% | $ 500 | 0% |
| All other expenses | $ 5,900 | 1% | $ 5,900 | 1% |
| Total Expenses | $ 166,500 | 63.9% | $ 198,900 | 25% |
| Owner Benefit | $ 115,500 | 19% | $ 194,600 | 25% |
| Net Profit Margin | 19% | 25% |
Franchise Industries: Free Guides Available
Learn more about the Health Care Industry
Are you interested in owning a franchise in healthcare services?
Download our free exclusive industry guide
Find your vetted healthcare business here:
