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Digital Disruptor Expands into Arizona

By Stephen Tweed 

Honor, the home care digital disruptor who emerged several years ago to “Uberize” home care, has just announced three new Honor Care Partners in Arizona.

Back in March of 2016, we began following the trend of new start up companies with venture capital funding who are moving into  home care using technology to disrupt the industry.  While there have been a number of companies who are using technology to disrupt the space, the company that has received the most press coverage and visibility is Honor.

Honor originally started out with an “Uber-like” app and caregivers as independent contractors in the San Francisco Bay area.  After a short period, the company ran into challenges with California’s employment laws, and switched to a W-2 employment model.  They apparently did not get the traction they expected, so they changed their model again, moving to the Honor Care Partner Model.  With this model, Honor partner’s with existing private pay home care companies to take over the back office operation including caregiver recruiting, scheduling, billing, and payroll.  The partner home care company continues to maintain its local brand identity, and focuses on sales, marketing, and client care coordination.

In the April 9, 2019 Press Release, Honor announced that is has formed “Honor Care Network” relationships with three companies in Arizona.  Honor’s new partners are Cypress HomeCare Solutions and No Place Like Home Care in Phoenix, and Placita In-home Care in Tucson.

Our Conversation with Cypress Home Care Solutions 

On Monday of this week, Bob Roth, CEO of Cypress HomeCare Solutions called to let us know about the Honor partnership before we read about it in the news release.  We’ve known Bob for a dozen years, since we spoke together at the National Association for Home Care and Hospice annual convention in 2007.  Thanks Bob for calling.

Bob was very excited about this new opportunity.  Here’s what he told us …

“While we have been successful with caregiver recruiting at Cypress, and for some other agencies in Phoenix, I could see the handwriting on the wall.  There are simply not enough caregivers to meet the growing demand.  We decided to let Honor handle the caregiver recruiting, scheduling, billing, and payroll, so that we can focus on what we do best … marketing and care management. The bonus is giving us the ability to spend more time with our clients, and cutting a significant amount of money from our overall burden.”

Bob also told us he is very excited about the data driven metrics.  “Their software is fascinating, and I’m impressed with their 99% fill rate within 48 ours.  This will help us in working with Medicare Advantage Plans by getting data to show our results.”

Honor’s Growth

Honor has raised $115 million in venture capital since starting in 2014, and they have 16 companies who have signed up under their new model.  The Honor Care Network companies range in size from $1.5 to $6 million in annual revenue.  Here’s more information on the opportunity, and what other companies are saying about their experience.

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Learn More About Home Care Industry Trends

One of the best ways to stay on top of trends in the home care industry is through regular conversations with other leaders in the industry. You can do that by being a member of a Home Care CEO Mastermind Group sponsored by the Home Care CEO Forum.  If you are an independent agency that generates between $1.5 million and $6 million in private pay or Medicaid Waiver revenue, and you would like to be part of a peer study group, visit the Home Care CEO Forum, and click on Mastermind Groups.



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