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How to Start a Senior Care Business

Senior care once meant nursing homes. Today, senior care can take place in a variety of settings, including the elder person's own home. Professionals who work with the elderly emphasize the benefits of allowing an elderly person to remain in his own home while receiving any necessary supplementary care. This care can range from providing acute nursing care to light assistance with daily living chores. Starting a senior care business involves close attention to the details of state and federal rules and regulations, as well as an understanding of the needs of senior citizens who require this care.

Difficulty: Moderately Challenging
Instructions

Things You'll Need:

  • Internet access
  1. Step 1

    Plan the business. Decide which services the senior care business will offer. Senior care can include nursing care, rehabilitation therapy (physical therapy, speech therapy, occupational therapy, etc.), assistance with daily living tasks (personal hygiene, shopping, transportation) or simple housekeeping chores.

  2. Step 2

    Secure a license for the senior care business. Each state sets its own policies and laws. Research the relevant regulations through the state Department of Social Services/Human Resources/Human Services (DSS). Be prepared to demonstrate proof that the senior care business's staff holds licenses for the various roles that they will fill in their day-to-day tasks. Demonstrate that background checks were run on all staff members of the senior care business and that they each have licenses for the role that they will fulfill.

  3. Step 3

    Prepare documents to show that the business holds a municipal business license. Show approval for the senior care business from the local zoning board.

  4. Step 4

    Fill out application forms for Medicaid and Medicare certification. A senior care business can accept Medicaid and Medicare clients and accept payment through Medicare and Medicaid if the senior care business holds Medicaid/Medicare certification. Medicare and Medicaid grant certification to a senior care business if the business holds a state license from the local DSS and meets all federal requirements for patient care and management. Access Medicaid and Medicare standards and regulations through the Medicaid/Medicare website.

  5. Step 5

    Accept applications for staff positions for the senior care business. Check each application to ensure that applicants for health care positions (nurses, therapists, physician assistants, etc.) hold a valid license from the State Department of Health. Each state's Department of Health/Licensing Division bears responsibility for licensing qualified health care workers. Check the validity of each license and do a background check on each applicant. Online services exist, which facilitate background checks to ensure that applicants for staff positions do not have criminal backgrounds.

  6. Step 6

    Acquire liability and business insurance policies for the senior care business.

  7. Step 7

    Establish an accounting system for the private duty business. Consult with a Certified Public Accountant to insure that the accounting system meets all federal and state laws. The system should include intake for new private, insurance-referred and Medicaid/Medicare clients and the procedures for each. Organize accounting procedures for employees. Speak to a CPA or a tax lawyer to decide how to register staff members. Some senior care businesses operate by having the staff work as independent contractors. The IRS and state tax authorities review businesses that use this system closely because there are strict laws governing when this type of sub-contracting meets IRS standards and when it does not.

  8. Step 8

    Fill out all forms to register the senior care business with the state tax authorities and the IRS. Request an Employer Identification Number if the senior care business employs staff directly.

  9. Step 9

    Go to the local city hall or county seat to apply for a business license for the senior care business. Apply for a permit from the local zoning commission for the senior care business.

  10. Step 10

    Market the senior care business to potential clients, families, insurance companies and local agencies that work with senior citizens. Place notices in local papers and community newsletters. Inform the local DSS office about the senior care business. Ask if fliers can be placed in hospital waiting rooms and rehabilitation centers. Distribute fliers to local community centers and churches.

  11. Step 11

    Arrange for mandated retraining sessions for senior care staff members if the DSS senior care license requires this for staff. The DSS will inform the senior care business about the times and locations of local classes offered in the area.

  12. Step 12

    Apply for a review rating by the Joint Commissions. The Joint Commission's ratings gauge the effectiveness and quality of health care institutions and businesses. Many clients, both individual and groups, rely on these ratings when deciding which health care services to use. A good Joint Commission rating will boost the client base of the senior care business and can contribute to the ultimate success of the enterprise.

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