7 Steps To Start Your Home Care Business This Year

Step 1. Make a decision on the type of agency you would like to start.

There are 4 main types of agencies you can start.  Some you can start quickly and easily with little or no licensing requirements while others require extensive training and involve strict licensing and accreditation. The 4 types of agencies ranked in order of difficulty to start are as followed:

• Companion Care. Non Medical.
• Home Care. Non-Medical.
• Home Health Care. Skilled. Basic Medical.
• Hospice. Skilled. Advanced Medical.

Companion Care- Non Medical. Caregiver provides companionship and emotional support.  May assist patients with limited range of motion in daily activities. Jobs are typically short term and paid directly by the patient. Home Care- Non-medical care agencies who will provide personal care and companionship for patients. Other duties may include housekeeping, shopping, basic meal preparation, assistance in dressing and in some cases transportation.   Home Health Care- Requires licensed and skilled medical professionals. They will monitor a patient’s condition by observing physical and mental condition, intake and output, and exercise.  Patients will require a doctor’s order for care.   Hospice- Requires licensed and skilled medical professionals who will provide care and support to terminally ill patients.  Patients will require a doctor’s order for care. Call us for free guidance on helping you make the best choice for you.

Step 2. Create your agency. In this step you will need to create a business name and location.

Originate a legal business name If you are going to stay local, you may consider using your current location as part of your business name. Be sure to check with your local county records to see if the business name you have come up with is available for use.  You can use your state’s online entity name check tool.  Go to your state’s site and search for the “Business Name Look Up”.  This is typically under the Division of Revenue and Enterprise Services or Division of Corporations.   Acquire a Business Mailing Address You will need to have a legal mailing address. While it is ok to use your home address, we never recommend it. The main reason is that it will become a public record, it will be on all your forms, and it will be updated into databases for navigation systems (meaning people searching for your health care business will see your home address and may drive there.). Sometimes it is easier to start with your home address for everything if you do not plan on getting commercial space.  The advantage is all your paperwork will have the same address on it and you will not have to make any updates. Talk to one of our consultants for the best plan of action for your situation You can always rent a commercial address only, use a mail agent, or rent a private mailbox from a service like PostNet or The UPS store. Secure a Business Practice Location Address To have an agency, some states will not allow you to work from your home and may require that you have a commercial business address. Your location will need the ability to secure customer data and have encrypted Internet service. On the exterior, make sure the leased  location is meeting your local Accessibility Standards.  

Step 3. Acquire a NPI number.

NPI is “The National Provider Identifier”. It is a 10-digit numerical identifier that identifies an individual provider or a healthcare entity. Providers are required to use their NPI when transmitting any health information in electronic form in connection with a transaction. This is the number you will use for billing. Some of the prerequisites of obtaining this number are-  Business Practice Location Information Correspondence Mailing Address Provider Identification Numbers The Correct Taxonomy Code  

Step 4. Obtain the correct licenses and certifications for your state.

You will need to complete a license application and submit the license application to the state along with the application fee. (No refunds or credits are given for state fees if the paperwork is filled out incorrectly. This will also delay the process by several weeks or months.) You will also need to staff your home care business with the required personnel (administrator/supervisor, nursing supervisor, and alternates) to satisfy the state’s home care license requirement. Once your application is accepted, the state will visit your office to conduct a home care license inspection to get your final approval. Get licensing help here  

Step 5. Policy and Procedures

Your agency will need to have specific Policy and Procedure Manuals in place. It is up to you to have the correct and proper manuals that adhere to all State and Federal Guidelines. Most Home Health agencies will get manuals for CHAP, ACHC, and the Joint Commission. Get Policies and Procedures manuals here: https://homehealthmanuals.com  

Step 6. Prepare for your state survey audit.

Unlike a home inspection, or a restaurant’s health inspection, the stakes in a home health care business survey are infinitely higher — fines, criminal penalties, or termination from Medicare and Medicaid to be exact.  We recommend you do a mock survey and understand all the laws and regulations in your state to make sure you pass and can stay open for business for the next 2-3 years until the next one.  (This step alone is why most successful home care businesses use a Home Care Consultant.) A mock survey will provide a realistic on-site experience without the risk of failing. The survey nurse will go over everything required to pass, help you plan and make corrections, and finally leave you with an action specifically related to you getting to regulatory compliance. Ask about getting your own mock survey:  

Step 7. Start your marketing to attract clients.

At this stage you will be able to create your visual branding. This will include your cards, flyers, vehicle wraps, billboards, and all digital media. In most states, you will be required to list your license numbers on all your collateral, so we recommend you hold off any design or print projects until you have this number in hand. Basic marketing will include going to local events, setting up online directories, and creating a lead generating website.  Advanced tactics include SEM (Search engine marketing), SEO (Search engine optimization), SMM (Social media marketing), Portal marketing, and running paid ads. Once established, you can start running hybrid or full virtual events for the community. Get marketing and web services here:

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