How to Start a Home Healthcare Business

The rising number of elderly individuals requiring special health services is on the rise and is only expected to grow as the baby boomer generation advances into retirement. With more and more seniors opting to remain in their homes rather than move to an assisted living or nursing facility, the need for home healthcare services is also growing. You can establish a successful business and company by learning how to start a home healthcare business.

Instructions

1. Find funding to start your home healthcare business. Even though healthcare is a business that can be profitable due to the high demand for services, it can also cost a lot of money to start up. You should have several thousand dollars to invest in a home healthcare business before even proceeding to find a facility, get a license or hire a staff. This can come from private investors, small business loans through the government or any other monetary source you can find. Most experts recommend any new business should be able to open its doors and sustain itself for six months on the money it has in its start-up fund.

2. Locate a facility to house your business. Although the main purpose of your home healthcare business is to travel to people’s homes to provide services, you still need a central location to serve as the primary place for your business. This should be an office or medical setting that projects a professional image, as prospective clients inquiring about your services may visit before signing up for services in their home.

3. Apply for a license from your state. Healthcare is becoming more and more regulated, and this includes home healthcare agencies. States require individuals opening a home healthcare business to apply for a license and pay a fee. Once the licenses is approved it must be renewed each year, which requires an annual fee as well as an annual report that details services provided over the last year, number of patients served.

4. Pass an inspection. As part of the licensing process your home healthcare agency will be required to pass an inspection. This not only ensures that your facility is suitable for housing your business, but also ensures all employees providing services have the appropriate credentials/licenses, patient files are kept confidential and that the license of the agency is displayed in an area where the public can see it.

5. Hire appropriate staff. When opening a home health agency, there are a number of different positions you may need to fill depending upon what type of services you provide. For example, you may provide simple home health services in which home health aides are trained and qualified to do. However, if you branch out and begin offering home nursing services or therapeutic services, you will need to expand your staff to include nurses, therapists and more. Regardless of what positions you have open it is important you hire staff that have training and meet any licensing requirements mandated by your state.

6. Maintain licensing, fees and reporting on an annual basis. The physical location of your business as well as where you provide services will dictate how often you must renew your license for your home healthcare business. For most states a renewal is required each year while a few provide more time between renewal periods. Many states require a renewal fee as well as some type of statistical report as well, although you should check with your state licensing agency for exact requirements.

Tips & Warnings

• Many states require home healthcare businesses to perform background checks on employees to ensure they have no history of abuse. You should determine if this is a requirement of your state, since failing to do so may put your license in jeopardy.

• A license for a home healthcare business cannot be transferred to someone else who’s purchasing the business in most states. This may be important for you to consider if you are not establishing your own home healthcare agency, but simply purchasing one that is already established and profitable.

• While an initial inspection for the license is done each year, states do have the right to perform additional inspections if concerns or problems arise.