Have you thought about starting a home healthcare business? Managed care and advances in medical care have decreased in-patient hospital stays. More healthcare is moving into the home.
This opens the door for the home healthcare industry. Experts predict that the adult population age 65 and older will double by 2060. Now is the time for home healthcare agencies to partner with hospitals and skilled nursing facilities.
Keep reading to find a step-by-step guide to starting your home healthcare business.
Why Is a Home Healthcare Business a Profitable Endeavor?
The need for home healthcare services will increase as baby boomers reach their 60s. By 2020, 56 million Americans will be over the age of 64. Home Care Association of America goes on to report that almost 60% of Americans 65 and older will need help with self-care at some point.
If you’re interested in starting a home healthcare business or expanding an existing one, the time is now. You can work with companies to find the resources and funding to make your dream become a reality.
Steps to Starting a Home Healthcare Business
So, where do you begin to launch your home healthcare business? Here is a step-by-step guide.
1. Make a Business Plan
A comprehensive business plan provides an understanding of what you need for your business.
Executive Summary
Briefly describe the service your company will provide and why it will succeed. Include a mission statement. Decide if you will be a skilled home health agency vs. non-medical home care agency
Company Description
Provide detailed information about your business and the problems it will solve. Identify specific consumers, organizations, or other businesses you will serve. Describe how your competitive advantage over similar companies.
Market Analysis
Review the industry outlook and your target customer market. Look for market trends and themes. Identify what makes similar businesses successful.
Organization and Management
Describe the legal structure of your business. You will need to incorporate your business and get a tax identification numbers. You will also need to get an NPI (National Provider Identification) number.
Provide an organizational chart showing the management structure and expertise at each level.
Service
Explain your services and how they will benefit your customers.
Marketing
There are many different approaches to marketing your business. Describe some goals to gain and keep customers.
Financial Funding
Create an itemized list with prices for all purchases needed to begin the business. Describe your plan for obtaining funding and how much money you will need over the next five years.
2. Secure a Location
Rent or buy an appropriate location. You will need an address when completing your registration and licensure applications.
3. Apply to Become an Insurance and Medicare Provider
Once you get your NPI, complete the Medicare Enrollment Application and specify your area of specialty. This will allow you to receive payment from Medicare and Medicaid. Contact large insurance companies in your area and determine the process for becoming a provider in their network.
4. Register Your Business
Complete your Secretary of State’s home care application to get a license. Also, complete any required city or county business license applications.
5. Hire Employees
Decide the number and skill set of employees needed. Ensure that you have business and billing personnel to work with insurance companies. After comparing salary levels in your market, generate a salary schedule. Advertise and begin hiring employees.
6. Develop a Customer Base
As soon as you register and license the business, begin marketing. Talk to hospitals, long-term care facilities, physicians, and skilled nursing facilities. Describe the process of receiving referrals and your unique services.
Are You Ready to Start a Home Healthcare Business?
With the increasing older population, this is a financially desirable time for starting a home healthcare business.
Do you need financing to start your home healthcare business? Our company works to create custom financial solutions to grow your business. We consider ourselves a partner that is invested in your success.
Our company provides various types of loans to help you achieve your goals. We also help you connect with resources to meet your specific needs.
We want to be the most trusted small business financing provider in the world. Contact us today to ask questions and learn more about our services.