This is a YouTube video titled "Why I Love The Home Healthcare Business" containing a monologue or talk focused on the home healthcare industry. The speaker discusses the business model, market potential, and challenges related to home health care services, particularly for the elderly demographic. The content is a single-speaker presentation without conversational elements.
Home health care. You guys saw me negotiate the home health care deal. It ultimately didn't work out. They didn't have enough customers. I thought it was a wobbly seller. I had to punish them in real time. I didn't. You know, I wish it went a different way, but it's very simple. Here's the model. They get a customer. You know, how do I put this? It was a niche within a niche within a niche. Let's just apply this to elderly care. Okay? Mom needs somebody to take care of her 20 hours a week. We want to go find, we want to go hire a company, abc, to take care of mom. Because mom's getting older and mom's definitely not going to come live with me. We're going to send somebody to help with mom for 20 hours. That company bills at X amount of dollars. That company. So let's call it $40. A company bills at $40. So that account is worth mom is 20 hours a week at $40. That's 800 bucks a week. That is $3200 a month. I need to go find a CNA to go be with mom. If I own this company to go be with mom at $20 an hour, I make my money. When the CNA goes in and stays with mom, mom's happy. The CNA's happy, mom's happy. That cost me $400 for a part time employee. 20 hours a week at $20. Right. They're making their money in the middle, charging 800, and it's 50% profit margin. They do this across hundreds of clients, thousands of clients. I love this model because aging demographic, 10,000 baby boomers retiring. We all want to take care of our parents. We want to, you know, you know, it is inevitable that we're going to have to do something to take care of the aging demographic. Right? And so mom does not want to go to an assisted living facility. Mom doesn't need that level of care. Mom wants to stay in her home. She doesn't want to come live with me. This is an alternative in home health care, they make their money by just arbitraging it. And so I love that business model because it fits perfectly in line. It is not going anywhere. And that company, I looked at $2.6 million in revenue, $1.3 million in free cash flow. She could easily, easily get five times earnings if she could water down the customer concentration that she has in that business. She was focusing on a specialty within the business, which is somebody that was hurt. Like so workers comp claims. And so this person was hurt on the job. Therefore it's specialty and they need longer term care. Not 20 hours a week, not four hours a day, not 10 hours a week. These are like long term care clients. And so I love that business model. I think it's great. I think it's going to do well. I think you could buy a lot of those patients. I think you could grow like crazy in that business. So I love home healthcare.
