University of Phoenix
Instructor: Peter Oburu
September, 23, 2013
Home healthcare is a growing industry as more patients prefer to receive their care at home instead of in a hospital or nursing home. Home healthcare provides sick and elderly patients with the opportunity to have their healthcare needs met while still being able to live life as normal as possible. However, patients in home healthcare do not have access to many of the luxuries in life, like salon services for beauty and pampering. Many of these patients are either home-bound or bed-bound and do not have the ability or resources to go out to a salon to get their hair colored, curled, cut, or straightened, get massages, get their nails painted, etc. There are many claims that the attitude and morale or the patients can help or hinder their overall well-being. Patients that feel good about themselves are more likely to keep up with their treatments and medications and be more active and/or social. This may help improve their health or at least give them a better quality of life. This business proposal idea is to provide beauty salon type services to receiving home health care services. All salon services will be provided to the patients in the comfort of their own homes. The following will provide the economic analysis of this service.
According to the CDC as of 2007, there were 1.5 million patients receiving health care services in their homes with an average service period of 315 days. These numbers have surely increased in the last six years. The healthcare industry is a monopolistic competition market structure, as is home health care. The market structure for this service would also be monopolistic competition because there are many beauty salons in the US, some of which are located within healthcare facilities. Prices vary from company to company with little impact on the market, as many salons...