How to Open a Nursing Home

Due to the many federal and state regulations, a nursing home is potentially one of the toughest businesses to open. However, people are living longer, and health care costs continue to skyrocket, so you have a ready market for quality, compassionate elder care services. Before diving into this business, it is absolutely essential that you have read and understand the many federal and state regulations that govern nursing homes.

Instructions

    • 1

      Understand federal and state regulations and guidelines. The federal government has strict rules governing the operation of a nursing home. The U.S. Health and Human Services Department's Center for Medicare and Medicaid Services (see Resources below) is the lead agency for these regulations. The rules laid out by the center govern nursing qualifications, patient assessments, facilities, treatment, nutritional and pharmaceutical requirements and maintaining the dignity of the patient. Additionally, the University of Minnesota has compiled the federal and state nursing home regulations on an easy-to-navigate website (see Resources).

    • 2

      Get the necessary qualifications and licenses. As the nursing home administrator/owner, you must hold certain qualifications and licenses depending on the state you live in. For example, in Alaska, a nursing home administrator must establish a governing body to assist with the operation of the nursing home, develop a 3-year budget and coordinate all facility functions with staff, the governing body and consultants.

    • 3

      Find a suitable location for the nursing home. The federal and state regulations vary. For example, the state of Washington outlines specifics with respect to the location and other outdoor areas around the nursing home. The state requires that there be shaded areas and firm walkways for the residents to use daily and sufficient space for walkers and wheelchairs to be used. There are no specific federal guidelines for construction of a nursing home, but those regulations should be covered in your community's local zoning ordinances.

    • 4

      Market the services and facilities once you have complied with all federal and state licensing and regulatory processes. Your local hospital and independent physicians are good places to showcase your facility's ability to care for the older patients that need 24-hour health services.Offer a tour of the nursing home facility to local media, doctors, hospital administrators and other health care professionals.

    • 5

      Establish relationships with health care providers in your area. Medicare and Medicaid provide the bulk of health care money to nursing homes. There are doctors listed on Center for Medicare and Medicaid's website who work with nursing homes to provide preventative, dental and mental health services to residents.

    • 6

      Meet the needs of your clients and their families by providing the highest quality health care services you can. The cost of health care has been steadily rising as life expectancy continues to rise. According to the Centers for Disease Control, the average male lifespan is 75.2 years, and for women, it's 80.4 years. This increase in longevity will encourage the need for nursing homes that provide quality care for their residents and peace of mind for their families.

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