August 14th, 2009

Gilbert-based CarePatrol bucking the downturn

Businesses focusing on health or seniors generally are faring well in the recession. But CarePatrol Assisted Living Services isn’t just surviving, it’s excelling.

Gilbert-based CarePatrol rates assisted-living facilities and advises seniors on where they should live based on medical, geographical, financial and social needs. The company has opened 10 franchises nationwide this year, increasing revenue from last year’s $250,000 to a projected $2 million for 2009.

“The one thing the economy can’t do is stop aging,” said founder and CEO Chuck Bongiovanni. “As our population is getting a lot older, I think a lot of seniors can’t afford in-home care.”

Bongiovanni also said the emotional burden on families of having their elder loved ones live with them may cause them to look for alternatives.

“When mom or dad lives with you, it’s probably a little bit more stress than the family can really handle now in these economic times,” he said.

CarePatrol started opening new franchises in April. It now has four offices in Phoenix, aside from the main office in Gilbert, two in Houston and one each in Tucson, St. Louis, Milwaukee and Charlotte, N.C. The company is in the process of opening seven more in Texas and Oklahoma. The goal is to have 150 locations within five years, Bongiovanni said.

“We’ve had unprecedented sales. Most franchises take about a year to a year and a half to get to 10 (locations), but we’ve done it in a few months,” he said.

In the company’s 15 years, CarePatrol has helped about 3,000 seniors find homes or live-in care.

“We’ve created an algorithm that grades a facility from an ‘A’ to an ‘F’ based on the most recent state survey and our experience with the home,” he said.

Employees hold in-person assessments with clients to match each one to an “A” or “B” facility that suits them well. They then accompany the client on a visit to the chosen facility to “be there for support,” Bongiovanni said.

“It’s very critical to match the level of care provided with the need of the resident in order to ensure quality,” said Kathleen Collins Pagels, executive director of the Arizona Health Care Association.

Pagels said it is important for consumers to make informed choices about long-term facilities, and they should be wary of any referral fees charged by companies similar to CarePatrol.

CarePatrol offers its services at no charge to its clients. The company receives income from the hundreds of providers that are part of the network. When a client moves into a home, CarePatrol receives payment from that facility.

The company has seen some effects of the recession, however. When a client uses Medicaid, for example, CarePatrol does not receive payment, Bongiovanni said.

“We see a lot more families asking questions about Medicaid and what it covers as opposed to private pay,” he said. “We still help the families. That’s what we do, whether we get paid or not.”

For the most part, however, Bongiovanni said the recession has helped his business even more — especially the franchising end of it. Owning a franchise looks appealing to many who do not trust their job security, he said.

“I think that’s happening now more than ever, because the quality of leads that we’re getting for franchising is excellent,” he said.

CarePatrol Assisted Living Services

Description: Free senior housing referral service that assists elders and their family members in finding assisted-living and in-home care
Founder and CEO: Chuck Bongiovanni
Address: 625 N. Gilbert Road, Gilbert
Founded: 1994
Employees: 17
2008 revenue: $250,000
2009 revenue: $2 million (projected)
Web: www.carepatrol.com