Expanding senior demand and health insurance coverage will spark a boost for elderly day-care services, causing prices to rise as demand increases
Los Angeles, California (PRWEB) January 03, 2014
Elderly day-care services have a buyer power score of 3.8 out of 5. This score reflects better negotiating conditions for buyers. Demand for senior care is expected to grow over the next three years as the 65-and-older demographic continues to expand. “Prices in the three years to 2013 remained stable, with many seniors delaying paying for care due to weakened disposable income levels,” according to IBISWorld procurement analyst Andrew Rebhan. As the economy continues to recover, suppliers can expect downstream demand for elderly day care to grow in line with increased federal funding for healthcare programs and the aging Baby Boomer generation. This forecast rise in demand for elderly day care will lead to higher prices for buyers over the next three years, but buyers will benefit from low levels of price volatility during this period.
There is a very low level of market share concentration among elderly day-care vendors. The majority of this market is made up of small, private organizations and nonprofits. Although fragmented markets often provide the benefit of comparison shopping for buyers, elderly day care requires that buyers use suppliers in their local regions, which may constrain negotiating power. “The supply chain does not pose a significant risk to buyers,” says Rebhan, but they should consider the potential financial risks associated with a competitive market composed of organizations that have low profit margins and do not always have transparent financial data. Major vendors include Active Day/Senior Care Inc., Emeritus Corporation, Five Star Quality Care Inc. and Genesis HealthCare Corporation.
Elderly day-care services are in the growth stage of their life cycle, as buyers are starting to consider them a more affordable, comprehensive model of senior care. More advanced healthcare offerings are starting to blend with traditional social models of day care to provide buyers with an alternative to other long-term care services. Buyer negotiating power is expected to be relatively strong throughout the purchasing process.
For more information, visit IBISWorld’s elderly day-care services procurement research report page.
Follow IBISWorld on Twitter: https://twitter.com/#!/IBISWorld
Friend IBISWorld on Facebook: http://www.facebook.com/pages/IBISWorld/121347533189
IBISWorld Procurement Report Key Topics
This report is intended to assist buyers of elderly day-care services. This market consists of establishments that provide nonresidential social assistance to seniors, primarily during the day, in supervised community-based settings to help improve their quality of life. Elderly day-care services offer health support, personal care, companionship, transportation and meal preparation for seniors that wish to delay institutionalization. These services are also meant to provide respite to caregivers. This report does not cover in-home healthcare or overnight housing services.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Vendor Financial Benchmarks
Buying Lead Time
Key RFP Elements
Buyer Power Factors
About IBISWorld Inc.
IBISWorld is one of the world's leading publishers of business intelligence, specializing in Industry research and Procurement research. Since 1971, IBISWorld has provided thoroughly researched, accurate and current business information. With an extensive online portfolio, valued for its depth and scope, IBISWorld’s procurement research reports equip clients with the insight necessary to make better purchasing decisions, faster. Headquartered in Los Angeles, IBISWorld Procurement serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.