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Executive Home Care is Growing the Right Way

by Ed Teixeira

It's important that franchisors control system growth and quality when developing their franchise network. Executive Home Care is doing just that.

Lenny Verkhoglaz

At the recently concluded Franchise Leadership and Development Conference in Atlanta I had the opportunity to meet Lenny Verkhoglaz, the President and CEO of Executive Home Care Franchising. Having a background in the franchised home care field I was impressed by the way Lenny and his team have structured the controlled growth, of the Executive Home Care Franchise.

Lenny told me that while working at United Healthcare, he became aware of a request from a senior who needed assistance. She was all alone running low on food and had no one to help her. Lenny's wife Mila who also worked at United went to the woman's house to see her and brought her some food. "The woman didn't want Mila to leave and asked her to stay for a few days which turned into weeks. It was then that we recognized the need and benefits of providing care for people in their home."

In 2004 they started Executive Care and it's continued to grow into one of the largest homecare agencies, in Northern NJ. Recognizing the potential of home care they launched their franchise program in 2012 and it's grown to 12 locations, which is good growth for a startup franchise operation. Lenny indicated that they provide companion care, personal care and skilled nursing. This represents more client services compared to those of most home care franchises, which don't provide skilled home care services.

I asked Lenny to provide a basic overview of the Executive Home Care franchise program. "We provide a proprietary software platform for scheduling, billing, payroll and a CRM program. In addition, we have a patient portal which enables family members to review their loved ones care and treatment. Franchisees pay a 5% royalty and 1% royalty for billing and payroll services. "The royalty fee is very reasonable considering the services that the franchisees receive.

When it comes to franchisee training, Lenny told me that it's very much hands-on. Franchisees spend the majority of their training in the Executive Home Care corporate office. According to Lenny this provides a real world experience that can't be duplicated in a classroom since it involves new franchisees in the day-to-day operations of an active homecare office.

In terms of future growth Lenny explained that they are looking to open 20 to 25 new franchise locations in the next 2 years. They want to have controlled growth which will enable Executive to maintain quality home care services for clients and continue to deliver a high level of support and services to their franchisees.

When it comes to the challenges facing home care agencies Lenny offered his observations in a recent article in Home Health Care News by Tim Mullaney, entitled DOL Wage Rule Takes Effect, Provider Reaction Mixed. In the article, Lenny offers insight into the impact that home care agencies will feel from new Department of Labor regulations pertaining to a change in the wages paid to live-in workers. In the interview with Mullaney: "He noted that some clients have agreed to pay higher rates but predicted that, ultimately, the increased costs would have negatively affected the industry. Some home care will go "underground" while other potential home care clients will opt for assisted living, he said. Online companies that purport to be home care providers but actually are matchmaking services between families and caregivers also will get a boost, he predicted, as people seek out patchwork care to keep costs down. It's going to hurt legitimate home care companies," he said. "It's going to hurt the business and seniors, their families."

Although there are challenges facing home care agencies, there is little doubt that Lenny Verkhoglaz and his team at Executive Home Care are developing a quality home care franchise into an organization that can meet these challenges while maintaining quality growth and services.

2015 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow.com and Chief Operating Officer, FranchiseGrade.com. He is a former franchise executive and franchisee. He can be contacted at 631-246-5782 or at  franchiseknowhow@gmail.com



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