Providence St. Joseph Health in Irvine plans to expand its home health care services franchise offerings by 50% over the coming year.
The healthcare provider will exercise an option on 13 Nurse Next Door franchises in Orange, Los Angeles, Riverside and San Bernardino counties.
St. Joseph Health, which earlier this year merged with Providence Health and Services in Renton, Wash., had purchased 26 of the franchises prior to its link-up with Providence.
Providence St. Joseph Health is a nonprofit healthcare system that locally includes 16 hospitals, physician organizations, home health agencies, hospice care, outpatient services and community clinics.
Nurse Next Door in Vancouver, Canada, delivers healthcare services that include non-medical work—companionship, medication reminders, meal preparation, bathing, dressing and transportation—as well medical care for Alzheimer’s, dementia and other conditions.
Nurse Next Door is currently approved to offer only non-medical services in California.
The 39 franchises for Providence St. Joseph represent an investment of about $4 million to $6.4 million based on start-up costs for one location, which run about $106,000 to $160,000, Nurse Next Door state franchise filings show. Start-up costs include a $47,000 franchisee fee; multi-unit franchisees typically pay lower franchise fees for additional locations.
The documents show average annual revenue for a franchise that’s open at least two years is $458,000, which equates to an eventual annual revenue stream of about $18 million. Monthly revenue per patient system-wide averages $2,250.
Some 17 of the locations are already up-and-running.
Royalty and marketing fees paid to Nurse Next Door are 6% of gross sales.
