Starting Your Own Home Health Care Business – If you are about to start a new business and are looking for in-depth guides and advice on how to start a home health agency – you have come to the right place. We know new beginnings can be challenging, and every little bit of support counts sometimes along the way.
To give you help and make the process of starting a home care business easier, we’ve done the research for you and gathered all the important information in one place.
Starting Your Own Home Health Care Business
We have added our How to Start a Home Health Care Business Checklist at the end of this article, so that you can visualize all the steps of your goal without much hassle.
How To Start A Home Care Business For The Elderly
Those who want to learn how to open a home health agency need to sort out one important thing before starting the process: financing. The cost structure covers the required initial investment, start-up costs, and planning costs for the first three years of operation.
The costs of starting a home care business can vary depending on the state you operate in and the type of home care agency you want to launch. Overall, unskilled home care agencies were the least expensive, while home health care, Medicare, and Medicare home health initiatives were the most expensive.
Starting a home healthcare business can range from $40,000 to $350,000, depending on the type of service and the state in which it is provided.
Developing working capital for the first year should be your first priority. Not having a start-up business budget is actually one of the main reasons new home care businesses tend to fail.
Start Your Own Senior Homecare Business: The Complete Guide To Get Your Business Started With Just A Few Hundred Dollars
The demand for the services of private caregivers is growing, and there are many reasons for this trend. For starters, baby boomers are changing the landscape — they make up roughly 25% of the US population. And by 2030, this demographic will be 65 or older.
Longevity is another factor at play here: In modern medicine, life expectancy has increased. It also means that some American citizens require long-term care, especially those with chronic illnesses. The prevalence of chronic diseases has also increased, which has increased the demand for the healthcare market.
Things have changed in the past few decades in how older adults spend their last years of life, and this is no surprise. When I was young, it was common for grandparents to stay in their homes for their entire lives. Then nursing homes entered the picture.
But now, it seems we’ve come full circle: More and more seniors today prefer to stay home as they age — 90% of them to be exact. This preference greatly affected the growth of the home health business industry.
Senior Day Care Center
All of this means that there is a need for more private caregivers and more home health agencies to provide appropriate services to older adults.
The term home health care is used to describe medical treatment or ancillary care provided by trained professionals – either a medical professional or a caregiver/nurse. This type of care is designed for individuals who do not need hospitalization or facility care but still cannot live safely on their own.
They need support which can range from medical treatment to help with daily activities such as eating and dressing or just companionship. Health care often focuses on basic assistance in the comfort of the patient’s home.
There are two types of home care agencies, and choosing one is the first step when starting a home health care business. The choice of the type of services you wish to provide affects many things: from the laws and regulations you must comply with to the qualifications of the staff you need.
Certified Homecare Consulting
As the name itself suggests, home health care is provided by medical professionals. This type of care goes beyond supporting the normal aging and independence of older adults. These include general nursing services (eg, monitoring of blood pressure and blood sugar levels), wound care, physical therapy, and palliative care.
Non-medical home care services focus on aging support and basic everyday assistance. Often, this includes assistance with personal care and hygiene needs, assistance with meal preparation, medication reminders, or providing transportation to and from doctor’s appointments.
Non-medical home health also includes companionship care, keeping older individuals active and cognitively engaged through playing cards and board games. They are provided by professional caregivers, home care aides, or certified nursing aides.
Now that we’ve covered budget and the types of services available, it’s time to take a closer look at the exact steps of starting a home health agency.
Neighbourly Care Home Health Services
No matter what business endeavor you’re in, the first step is always the same: Create a formal plan for how you’ll build your business. Writing a good business plan is the foundation that will guide you when starting your business, and later – when you need to run it.
Think of it as a blueprint or roadmap for structuring, managing, and growing your business. And there’s more to this plan—it can also help you get financing or get a new business partner on board. A well-thought-out business plan will convince investors to work with you.
At this point, you need to decide what kind of care you will provide and your services. You also need to define and manage the markets you will be targeting. And of course there is the issue of finances.
We’ve already emphasized the importance of ensuring a solid financial plan and business budget for a year. The reason for this is that it takes between six months and a year before your business starts making money. To set yourself up and your new business for success, make sure you have a budget for your personal and business needs. Overhead costs, hiring employees, and work equipment — to name a few, tend to add up quickly.
Resources For Home Care Entrepreneurs
This term refers to different types of business structures. For example, one can choose to form a corporation, partnership, sole proprietorship, or limited liability company – limited liability company. Each of these types will affect your business in the future – the personal obligations you will have, the amount of taxes you will have to pay, as well as the organizational structure of your business.
So, do your research carefully, and check out the available business entities that tick the most boxes for you.
The Internal Revenue Service (IRS) issues a unique 9-digit number for every business that operates within US borders. An EIN is used for identification, and is also known as a FEIN, Federal Employer Identification Number, or Federal Tax Identification Number. .
Regardless of the name, you must apply for an Employer Identification Number (EIN). Note that this is a free service, and you can apply through several channels: online, by post, by fax, or by phone (for international applicants).
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This step may sound intimidating, but it really isn’t! In most cases, all you have to do is submit your business name to your state and local government, and you’re good to go to the next step. But before you get to the registration part, be sure to check if the name you’ve chosen for your business is available.
Also, don’t forget to browse the web and check domain name availability for your website too!
Your work must be in compliance with state and federal health departments. You must obtain the licenses and certifications required by your state, city, and/or territory. For example, in some states, home health agencies are required to undergo a certain number of hours of training approved by local licensing and Medicare/Medicaid certification bodies.
Only after they meet these criteria can they provide the appropriate services. Different states have different laws, so it’s best to contact your local and state health departments.
Open A Home Care Business
Also, one thing to be aware of is that according to the 21st Century Cures Act, all Medicaid Personal Care (PCS) and Home Health Services (HHCS; effective January 1, 2023) requiring home visits to a provider must apply. EVV (Electronic Visit Verification) system.
The waiting time depends on your condition, but in general, it can range from as little as 3 months to 12 or even 18 months. Contact your state regulatory authorities to confirm how long the licensing process will take.
We cannot stress enough how important it is to have proper insurance as this is a dangerous industry. Next, you will work with vulnerable individuals. Accidents and unexpected events happen no matter how careful you are, so make sure you take the right steps and protect your business and assets. You need the following insurance documents:
In addition, unemployment insurance, workers’ compensation, and disability insurance are usually required by law (this varies from state to state).
Trending In Home Senior Care Businesses [2023]
Now that you have your paperwork sorted and all the legal requirements, your business name and entity approved, it’s time to focus on finding qualified people for your business. Your employees are the face of your business, so make sure you hire people who reflect your company’s values and who they are
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