In
his article entitled “CareLinx’s New Model for Home Health Care” from October
25, 2012, Nick Lieber discusses the relatively new, innovative company CareLinx
that aims to drastically change the homecare industry by eliminating the
middleman of actual homecare agencies and allowing those in need of a caregiver
to seek out a willing worker and independently agree upon things such as a
consistent paying rate as well as schedule of meetings. Onetime Merrill Lynch
derivatives trader, Sherwin Sheik founded CareLinx back in December and
currently maintains a database of 5,500 home-care workers out of San Francisco.
“Visitors to the site can search the listings based on criteria such as work
experience and overnight availability or post a job for free.” While homecare
agencies “generally charge $15 to $20 an hour and pay workers $10 to $12 an
hour,” the worker can take home anywhere between $12 to $15 on average per
hour.
What
really interests me the most about this new model is that it is essentially the
Match.com of homecare. Not only does CareLinx allow a truly personal experience
that allows the caregiver to receive more money for their services, it also
offers the opportunity for those in need to potentially not have to be placed
in an institution. While the caregiver is still practically a stranger, the
individual or family seeking a caregiver will now have a plethora of knowledge
about the worker available at their fingertips. An interesting outcome of
Sheik’s model could be that significantly sized agencies also have access to
his site. Instead of spending an indefinite time seeking help or requesting
interviews, agencies can now use CareLinx’s in depth services and information
and hire, effectively putting money into Sheik’s business while effectively
competing with them.
Moving
forward, CareLinx can add a user review system that allows those who used the
caregivers services to provide feedback and give the caregiver some sort of
score that will allow future clients to see just how good he or she is. Large agencies
could also partner up with CareLinx by dispatching workers to reduce the cost
of having actual physical institutions.
While
this new model seems to be promising, there are still potential shortcomings.
By having access to the information of the caregiver, there is a possibility of
people having preferences based on gender, race, or age. They can single out
certain groups of people based on personal likes or dislikes. Ultimately, this could
negatively affect the company and opportunity for certain caregivers to find
work. Also, by not having some sort of physical space, this could prove detrimental
if the database fails. Large industry agencies still have years and years of
reputation and experience of operations that CareLinx cannot simply provide. As
a society, we tend to buy the brand rather than the product or service because
of the reputation that surrounds whatever we by. Therefore, large homecare
agencies have a name to rely on that CareLinx does not.
Source: http://www.businessweek.com/articles/2012-10-25/carelinxs-new-model-for-home-health-care