For many older adults, everyday expenses like food, health care, and housing continue to rise faster than their incomes. Government benefits have not kept pace, as a result, more seniore are living with financial hardship. According to the National Council on Aging, more that 17 million adults are 65+ (rougly 1 in 3) are economically insecure with incomes below 200% of the Federal Poverty Level.
For prospective Right at Home owners, understanding this financial and payer landscape is essential. Older adults rely on a variety of funding sources to afford in-home care, and these payer sources directly shape a franchise’s service mix, revenue stability, and long-term growth potential.
Why Payer Sources Matter for Franchise Owners
Right at Home franchisees serve a broad range of clients—from those who pay privately to those supported by Medicaid, the VA, or other programs. Understanding payer types allows franchise owners to:
- Forcast revenue streams more accurately
- Offer services aligned with specific payer requirements
- Support families navigating complex financial programs
- Build strategic community and referral partnerships
- Maintain financial stability despire payer rate changes
Many seniors rely on multiple programs simultaneously, requiring franchise owners to understand each payer’s rules, reimbursement timelines, and volatility.
Understanding the Right at Home Payer Mix
Chief Growth Officer Brady Schwab shared important context about the current system-wide payer mix and what a healthy balance looks like for franchise success. Right at Home coaches owners toward a 75% private pay mix.
Private pay clients offer:
- More stable and predictable reveue
- Less administrative burden than government-funded programs
- Greater flexibility in service schedules are care planning
A strong private pay base provides the financial foundation needed to serve mission-driven programs like Medicaid and VA without risking the health of the business.
Balancing Mission and Margin
Right at Home’s mission centers on helping seniors live safely at home. Franchise owners often feel deeply connected to the clients they serve—but mission cannot exist without financial health.
Brady Schwab shared, “If there’s no margin, there’s no mission. If you can’t sustain your business, you won’t be there tomorrow to help your clients.”
- Do not assume how others will or won’t spend money. Families often reprioritize when home care is essential.
- Home care is cost-efficient compared to alternatives.
- Flexibility and readiness to proviot are essential as external payer forces shift.
- Strong relationships, operational excellence, and values-driven leadership help maintain margin across payer sources.
VA Programs That Fund In-Home Care
Right at Home is well-positioned to serve veterans, and several VA programs may fund care:
- Veterans Pension with Aid and Attendance
- Homemaker and Home Health Aide Care
- VA Long-Term Care Services
- Program of Comprehensive Assistance for Family Caregivers
In many markets, the VA is a significant payer steam. However, VA rates change annually, and recent years included both increases and “right-sizing” corrections.
“You must plan for volatility. Business ownership is planning for the things you never expected to happen,” says Brady Schwab.
For franchisees, the VA can be extremely opportunistic when rates are favorable. Despite this, rate changes are outside an owner’s control and can shift suddenly. For this reason, Right at Home coaches owners to accept a limited number of VA clients due to the instability of the payer source.
As older adults face financial insecurity, payer diversty will continue to shape home care delivery. Franchise owners who understand payer dynamics and plan for volatility will build businesses that are both profitable and deeply impactful.
If you are looking to establish a business and make an impact in your community, learn more about Right at Home’s available opportunities here: https://rightathomefranchise.com/available-territories/.