This is why and how to start a home care agency.
HOME CARE AGENCIES are continuing to grow in popularity due to our aging population and the fact that many older people prefer to be cared for in their own homes. This is why starting a Home Care Business to meet this demand has the potential to be a rewarding enterprise. It is one of the fastest growing and most profitable businesses in the USA today. Over 1.2 million home health aides and personal care aides will be added to the U.S workforce (a 41% increase) between the years of 2016 and 2026. SOURCE: U.S. Bureau of Labor Statistics, Employment Projections program
These numbers don’t even allow for the nurses, therapist etc – so you can see that this industry is projected to grow massively. Looking at all of the spastics and considering the recent tax changes with incentives to start a business, then you can see now is the time to start a home care agency. This is a rapidly growing and recession proof industry.
Some of you may decide that franchising is an option in what is a highly profitable industry; but franchising is not the best option. The initial set up costs in start-up are expensive, and there are further ongoing costs over the years. This is an option you do not need to take if you have your own agency with your own name, which is by far the best route to take.
There are a number of things if you start a home care agency that could be considered advantageous. For a start, it needs relatively low startup capital and can sometimes be started from your own home. You will need to decide whether to start a Skilled Home Health Agency or a Non- Skilled Home Care Agency.
A Non-Medical home care services agency will include personal care and assistance with daily activities such as meal preparation, transportation and housekeeping.
Medical Skilled home health agencies will administer skilled licensed nursing and therapy services. This will be carried out under physician’s orders and strict guidelines will be imposed.
HOW TO START A HOME HEATH AGENCY
AGENCY START UP PROCESS:
We recommend that you obtain your agency license in the name of a corporation instead of yourself.
AGENCY LOCATION /PHONE
You need a physical Agency Address. Some states allow you to start a home care agency from your own house which is a money saver for initially starting your agency.
OBTAIN A FEDERAL EMPLOYER IDENTIFICATION NUMBER (EIN)
This is similar to your personal social security number but for corporations.
PREPARE YOUR FINANCES
Open a business bank account and set up an accounting system.
OBTAIN YOUR STATE REGULATIONS
You will find your regulations at your State Home Health Licensing Departments Website. You will also find the qualifications for your Administrator/Manager & the Director of Nursing/Supervisor.
WRITE OR BUY A POLICY & PROCEDURES MANUAL +FORMS/SYSTEMS
You will need this to address new client admissions, plan of care, scheduling, employee and payroll records, orientation and client billing. You will need these for licensing in your state and to keep your agency efficient + legal. We can help with this and will include the necessary forms. policies or job descriptions that will be requested by your state licensing department.
OBTAIN AND COMPLETE YOUR STATE APPLICATION
You will find the application at your State Home Health Licensing Departments Website, or you may have to request it.
The most difficult thing with these applications is usually the documentation that they request – We specialize in that so have a look at our products. You can read more about this here.
You may Need Qualified Individuals listed on the application for your Agency depending on your state and or type of agency you want to be licensed for.
•Personal Assistant Services: Administrator/Manager & a supervisor
•Licensed Only: Administrator & Director of Nursing
•Licensed & Certified: Administrator & Director of Nursing
ONCE YOU GET YOUR STATE LICENSE
You can now admit patient’s/client’s if you want and bill for Self Pay, Some Insurance Companies, and Some State Medicaid Waiver Programs. These are the basic steps in most states but if you need further help then please contact us.
Over the next few weeks we will carry on with “how to start a home care agency” and will be suggesting some Marketing Planning Ideas for your new business.