Feasibility Study for Elderly Care Business in Banglamung and Sattahip, Chonburi Province

Abstract

The objectives of this study were to 1) Study the service model and management of the elderly care business. 2) Study the market situation and the competitive trend. 3) Study the personal factors of the target group on their buying behavior of elderly care in Banglamung and Sattahip, Chonburi Province. Study with in-depth interviewing together with non-participant observation. The key informants were 8 elderly care providers, covering 10 people and customers and/or their children and relatives making 17 people, totaling 27 people.

The results of the study based on the service model and management of the elderly care business indicated that most of these businesses are medium sized. Most are stand alone with no branches and are managed by registered nurses. Elderly care means providing 24-hour nursing services for the elderly, looking after people with chronic illnesses or close to death. The ratio of service personnel to number of customers are 1 carer to 3 patients. The number of customers per month is stable and the duration of the occupation of the bed is uncertain .The Criteria for customer acceptance, is in general all elderly persons are welcome however all have to be  physically assessed for their suitably by the registered nurse. There are different tariffs between Thai and foreign customers. The service rates are determined by the nature of symptoms, illness and exactly what services are required. Most elderly carers are located in the community having easy access and a good security system near the hospital. Most of the entrepreneurs use their own houses or rent the houses and adjust the landscape and interior design of the house to suit the elderly. Basic medical devices and equipment are important and necessary. Personnel are the most important factor especially, the Caregiver. For financial management, the main components of the elderly care business are 1) Land location, construction, interior design. 2) Basic medical equipment and facilities. 3) Personnel. Most entrepreneurs when they invest their first business often use their own dwellings or rent a house that is fully furnished.

Market conditions, growth prospects and the competitive trend all affect the elderly care business. The market is likely to grow further according to the fact people are now living longer. It has been estimated that the number of new entrants entering the elderly care market will increase. Some entrepreneurs are of the opinion that the presence of more elderly care providers will make the market more competitive meaning people will go to the provider giving the best care and service for money. According to the needs of the elderly, there are different levels for health care providers as the substitution services such as 1) Home Care or home delivery. 2) Hiring an Independent Caregiver to take care of the elderly at home. 3) Day Care Service. 4) Hotel for chronic patients and health rehabilitators. Most elderly care providers are networked and partnered with hospitals, elderly care schools, private ambulances, embassy ​​and other elderly care providers. Problems, obstacles and  limitations  in the operation of the elderly care are 1) Shortage of personnel especially the Caregiver. 2) Financial restrictions of the customer and relatives. 3) Thai culture and values.  ​​4) The risk of litigation by the customer and relative or by the personnel themselves. 5) The problem of death of the elderly during the care. 6) Community issues. The key success factor of the elderly care business consists of 1) Service and quality of service. 2) Price. 3) Location. 4) Physical evidence. 5) Human resources. 6) Network and alliance. 7) Cost of management. 8) Risk management regarding revenue. 9) Risk management regarding litigation by customer.

Personal factors of the target group, in terms of the personal factors of elderly people who come to the elderly care due to they cannot live on their own or could not help themselves or need close supervision 24 hours a day. Target customers in this business include elderly, children and relatives. The main target groups are 1) The target customers in urban area. 2) The target customers by their interesting and 3) The target customers by revenue. Factors in choosing the service are the factors of Thai cultural and values, the factors of social and belief in quality of service and the factors of the elderly lifestyle.