Entrepreneurs looking to start a home healthcare business know that is a lucrative venture. In fact, it’s currently a $103 billion industry that is projected to double in the next fifteen years. Though it is a big industry with many opportunities, getting started with your own health care business may seem overwhelming. If you are interested in starting your own home health care business, you must be aware of the tasks associated with any start-up and the obstacles that come with this specific industry. Read on to learn how to start a home health care business.
Choose The Right Type Of Home Care Business For You
There are a few different types of home care that you may consider based on your skill set or knowledge of the health care industry. The business intelligence service IBISWorld tracks five specific subsets of the home health care industry. These sectors include traditional home healthcare and nursing care, home hospice care, homemaker and personal services, home therapy services, and “other.” All of these areas require different levels of skill, areas of expertise, and licensing. If you do not want to deal with the hassle of licensing, starting up a homemaker and personal care service generally will provide the least barrier for entry, requiring less regulations and licensing. Determining what type of home care business is right for you will make the next steps much clearer.
Register With The State
You must register your business with the state and complete your state’s home care application to obtain a license. In many states, you need a business license to open a home health care business. This will ensure that you can receive payment from Medicare and Medicaid. You will also have to obtain your tax identification and National Provider Identification number. Registration requirements vary by state. Some of the most popular states for home healthcare businesses include New Jersey, New York, Florida, and Texas. Additionally, your specific county or city may have additional requirements within the state registration process. Consult the Department of Health and Human Services who will help point you in the right direction for any necessary government registration.
Obtain Proper Licensing
Ensure you have proper licensing for the services you intend to provide. Licensing will depend on whether you are providing medical or non-medical home care. You will have to submit an application to get a state license. You should expect an on-site inspection, though some states may give a provisional license and do a checkup later. Be aware of specific policies you must follow during the provisional period. Find out if you will need a Certificate of Need, which may be mandatory if you are offering Medicare and Medicaid. Proper licensing depends on your particular services offered, so make sure that your business is properly registered and licensed.
Consider Your Budget
Though the home health care business is profitable, it can be expensive to start your own. When properly managed, keeping a budget can save your business. The estimated cost of a non-skilled home care business is approximately $80,000. A Medicare-certified agency can go from $150,000 to $350,000, depending on the state in which you start. Much of this cost is due to licensing fees, necessary technology, patient care costs, and office space. Before starting your business, you should outline a working budget for the first year. This way, you can secure an office location, invest in equipment and medical supplies. Of course, you should have enough cash flow to run the business while starting up. Being aware of the potential costs can help you budget effectively.
Check Potential Hires
Next, you will want to find the best people to work for your company. When they do a home visit, they are the face of your company. Especially when starting up, the right team members can establish a strong reputation for your home healthcare business. Check on the certifications of any applicants to ensure they have the right skills and licensing to fill the roles for which they apply. You will also want to assess their interpersonal skills. You should outline a process for screening all potential hires so that you will have only the best staff for your business. Carefully, hire qualified individuals for your home healthcare startup.
Find An Overseeing Physician
Of course, if you would like to start a home healthcare business with a full range of medical services, you’ll need to work with a physician. Typically, home care givers, aides and professionals are not authorized to perform medical services. However, an overseeing physician can expand your services to provide. Certainly, establishing strategic relationships with physicians and other licensed practitioners can increase your overall customer base and profitability. With the right relationships, you can start your home care health business with a variety of services.
There are a few steps to follow if you are interested in starting your own home health care business. Knowing your strengths can help you determine what type of home care business is best for you. Once you determine this, you must register your business with the state. Obtain all the proper licensing for the services you provide. Outline your budget so that you are aware of any possible expenditures and can financially handle the home care business you start. Make sure to screen potential hires and their backgrounds and check their certifications so that you can find the best workers for your business. If you are having trouble finding new employees, consider using the top text recruiting tools to find candidates in your area. Following these tips will ensure the successful start of your home healthcare business.