Franchise consulting firm iFranchise Group, in a recently released whitepaper, predicts that current and ongoing changes in the healthcare industry will lead to a boom in franchising in this dynamic market sector. iFranchise Group expects the number of franchises in the healthcare segment to double over the next five years.
“We are expecting to see a significant increase in the number of new franchisors entering the marketplace as businesses look to grow while managing the more complex provisions of the Act”
Franchising experts have already noticed an increased acceptance of franchising as a growth vehicle within the medical and healthcare professions. Now, given the fast‐changing healthcare marketplace, franchising is becoming an increasingly viable solution to meet today’s and tomorrow’s industry issues, with the net effect of benefitting patients, clients, and professionals alike.
Franchising is not new to the healthcare industry, with numerous health and wellness franchises and other similar concepts already expanding nationwide. Mark Siebert, CEO of the iFranchise Group and noted franchise consultant, foresees some positive, perhaps unintended, consequences of the Affordable Care Act, in particular, within the medical field: “We are expecting to see a significant increase in the number of new franchisors entering the marketplace as businesses look to grow while managing the more complex provisions of the Act,” he said. “For example, since franchisees are independent contractors, the employees they add do not count toward the 50-employee threshold, which triggers additional provisions under the new healthcare act.”
Based on the number of calls the franchise consulting firm has been receiving from health-related companies interested in franchise development, Siebert added, “If healthcare is, indeed, available to more people under the new law, more people will presumably seek treatment, thus spurring more business through the healthcare industry. At the same time, many medical professionals are being squeezed by insurance companies – forcing them to look for alternatives to careers that often look more like assembly lines than medical practices.”