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Frequently Asked Questions
1. What makes the Aegin Place® (AP) franchise different from other home health agencies currently offering services? The AP concept targets older adults and others with disabilities, in need of 24/7 in-home, non medical care. The AP approach uses live-in caregivers only. These home health aides live in the clients home on shifts of 2-6 days per week. The typical home health agency operates on an hourly basis, staffing on a day to day basis with different caregivers covering a minimum of 3-4 hours at a time. AP caregivers are not employees, but independent contractors who are directed by the client or their family. The AP caregivers receive room and board while on duty.
2. When a client needs around the clock caregivers, why would they select AP over the traditional hourly agency? There are some very good reasons for selecting AP. The primary reason is cost. The hourly agency charges about $20.00 per hour or $400-$500.00 per day in most markets. AP charges a flat fee of $130-$160.00 per day. This is generally less than a custodial nursing home or an assisted living facility, when the client requires some assistance with activities of daily living (ADL's). It is far less than using a home health agency that bills hourly. With AP, clients receive the benefit of consistent caregivers, one on one care, security of having the caregivers present 24 hours per day, backup caregivers in an emergency, the right to select the caregivers before they begin the assignment, a caregiver that is matched to their needs and desires and a management system that replaces caregivers at the clients request.
3. Why does AP experience less caregiver turnover than other types of agencies? Caregivers are not simply dispatched to a client's home. They are matched based on the needs of the client and the skills, temperament and personal habits of the caregiver (i.e. non smokers). Since the caregivers live in the home of the client, there is more relationship building and bonding. It is not uncommon for the caregiver to remain with a client for 3-5 years.
4. Is the background screening with AP different than that of other long term care services? AP screens more items than most agencies. Typically, home health agencies do a simple county criminal background investigation. AP performs a national sweep for fraud and abuse, social security skip, criminal history on a national basis, driving record, credit, employment history and personal references.
5. Does AP secure liability insurance coverage for its operations? All AP franchises are contractually required to have general and professional liability coverage. We can direct you to a company that specializes in liability for non-medical home care, at a cost far less than generally can be found on your own. New franchisees have commented on the highly competitive premiums they have been able to secure. The carrier is Lloyds of London.
6. Is it difficult to find acceptable caregivers in the community? Due to the non medical nature of the care required by many older adults, individuals who have cared for family members, children and those with other disabilities are frequently looking for this type of work. Franchisees are trained to network and create a pool of these caregivers. When a client is more medically involved, a higher qualified caregiver is recruited. The caregivers are interviewed and approved by clients before placement occurs.
7. How do clients usually pay for AP's live-in services? Generally the services are considered private pay. Clients requiring 24/7 care pay with their own funds, a month in advance. The care is not covered by health insurance, Medicaid or Medicare. Clients who own long term care insurance policies may be reimbursed based on their daily benefit. These policies differ with regard to the percentage of the daily benefit they will pay. Depending on the policy structure, they may receive between 50% and 100% of the daily benefit for non-medical or non-professional care. AP's services fall into this category.
8. What does "client directed care" really mean? The client and caregiver both understand that AP does not manage caregivers or develop a plan of care for the client. The client directs the caregiver to perform tasks that are necessary to keep the client at home. Additionally, the client dictates the hours the caregiver remains in the home. Time off, vacations and breaks are controlled by the client. In some cases the client may prefer to have the caregiver leave the home every day so that they may be alone in the evenings. The base rate paid by the client is the same regardless of the number of hours worked by the caregiver. AP replaces caregivers at the client's request, generates caregiver contracts, pays the caregiver for the client and generates annual 1099's, as the caregiver is compensated as an independent contractor or self-employed person.
9. What do I get for my franchise fee and royalty payments?APF provides you with a proven system that can be profitable in your specific market in a very short period of time. Initial training focuses on marketing
targets, client management, caregiver recruitment/placement and unit management. The following benefits are also part of the ongoing support franchisees can expect:
a. Initial supplies of brochures, business cards, presentation folders.
b. Ongoing email and phone support and consultation
c. Free press release service
d. Web site presence
e. Downloadable forms
f. Co-op advertising when production targets are met
g. Negotiating cost effective services (i.e. background investigations)
h. Discounts on printing and promotional collateral
i. Client Long Term Care Insurance consultation and interpretation
j. On site visits
k. Transportation, meals and lodging for initial formal training
l. Protected territories
As our network grows, APF will consider regional seminars, newsletters and annual meetings with expenses paid for those units meeting production goals.
10. Is our use of Independent Contractors appropriate from a legal perspective?The IRS has specific elements that constitute independent contractor status. From our program’s inception we have focused on adhering to these principles. Our contracts with caregivers reflect all of the needed references and requirements. Over the past several years we have revised the contracts and had several legal opinions rendered. The contracts have been unofficially presented to current and past IRS officials in order to get their input. Although lengthy, they cover the ground necessary to keep us on firm legal footing. Even when these contracts are used by franchisees and their caregivers, it is critical that franchise owners treat the contractors or self employed caregivers in a fashion constant with the agreements. Some of the following elements are central to maintaining independent contractors:
a. Compensation or contractor fees are reported on IRS form 1099.
b. Clients direct the contractors in the home and determine tasks to be performed.
c. Contractors receive no training from franchises.
d. Only clients can terminate caregiver contracts.
e. There is no benefits package for contractors. They are not employees.
f. Clients determine the hours they expect the caregivers to be present in the home.
Franchises have NO control over caregiver performance or activities while they are in the client's home.
If you have additional questions please use our Contact Us e-mail and send us your question.
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