OPERATING AN ELDERCARE PRACTICE.

• Author: Meyer, Jon A.

The U.S. Census Bureau estimates that, by next year, 16.6 million people in the United States will be 75 years old or older. The bureau also estimates that Americans age 65 and older control between $11 trillion and $13 trillion of the country's wealth. Much of this expanding segment of older Americans will require care, whether it means assisted living in their own homes or institutional care.

CPAs are the professionals best suited to ensure that these elderly Americans are receiving the right care and services. The opportunities are out there, but it is extremely important that CPAs who wish to develop a specialty in this area understand what it takes to do it right.

In the fall of 1997, my partners and I decided to provide ElderCare services. We agreed this was an opportunity for our firm, but we also understood that offering these services would take patience, compassion and a real desire to help an older generation of Americans and their families. Success did not simply fall in our laps; in fact, we made some costly mistakes along the way. Other CPAs can benefit from what we learned about running a successful ElderCare practice, so those considering this specialty can reap both its financial and emotional rewards.

Why we offer ElderCare

My firm, Jones, Nale & Mattingly, which is over 75 years old, has a strong client base serviced by 20 full-time professionals. We knew there was an estimated $7 billion national market for ElderCare services. We looked closely at our particular marketplace, clients, social service agencies and health care providers to determine whether there was a market for this service in our community.

My personal experience had an influential role in the firm's ultimate decision to offer ElderCare. My wife's parents had become seriously ill and were dependent on us as their sole caregivers. I had heard from other family members and friends how difficult it was to find the right help for their aging parents. I was, therefore, in a position to understand, and to explain to my partners, just what characteristics an ElderCare provider should have. We measured the risks inherent in providing ElderCare services (see AON supplement, page 1) and chose to move forward and make ElderCare one of our new, nontraditional client services.

How we set it up

One of the most exciting things about developing an ElderCare practice was acting as the leader of an interdisciplinary team of service providers. In order to effectively...