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Mother’s Touch, Inc.

WHY INVEST IN HOSPICE?

Investing in End of Life Care

Demographical Facts Support Continuing Need for Decades As America’s World War II generation passes away and the Baby Boom generation rapidly turns gray, hospice has become a growth industry. While industry data is fragmentary, five years ago, in 2009 about 33.5 percent of Medicare beneficiaries who passed away died at home, according to a study published by lead author Joan Teno that appeared in the Journal of the American Medical Association earlier this year. Of those, 42 percent died in hospice care as compared to only about 20 percent in the year 2000. In this Memorandum we have cited information from the National Palliative Care and Hospice Association of an increase from 7.4% to 26.4%, the number of total deaths under all hospice administered programs occurring in hospice in just one year. Federal Medicare spending on hospice care has also grown at a compounded annual rate of 16 percent from 1999 to 2011, up from just $2.4 billion at the beginning of that period to $13.8 billion at the end. Over that same period, the number of hospice providers grew from 2,303 to 3,585. According to ‘Investing Daily’, an online investment research company, the largest provider in the US of palliative care services, otherwise known as hospice, with about 8 percent market share in the country, operating 51 programs in 18 states, is forecast to grow by 15 percent over the next five years, handily beating the S&P 500 forecast for 9.8 percent growth. This is in large part due to the changing attitude about death. No longer a topic of dread and denial, it is becoming a mature family value up for discussion. Not only are palliative-care professionals discussions, changing attitudes, increasingly, it is family dialogue that is shifting the focus as they come to terms with their aging family members. “…the hospice market is forecast to grow by 15 percent over the next five years, handily beating the S&P 500 forecast for 9.8 percent growth.” —source: ‘Investing Daily’

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