Starting Your Own Home Care Business

Home care agencies continue to grow in popularity due to our aging population and preference of many older Americans to be cared for in their homes. Starting a private duty / private pay home care business to meet this great demand for in-home care may potentially be a rewarding business enterprise for many, and Keep Safe Care has created a vehicle for individuals to do so more effectively, efficiently, and economically.

Skilled home health agency vs. non-medical home care agency

Initially it is very important to understand the distinction between starting a medical skilled home health agency versus a non-medical home care agency. Basically non-medical home care services include personal care, assistance with daily living activities, meal preparation, housekeeping and transportation. Such services are often vital for folks to remain safe and comfortable in their homes. Private pay rather then 3rd party billing sources are the most common form of payment for non-medical care.

Medical skilled home health agencies as the name implies administer skilled licensed nursing and rehab therapy services under physician’s orders with strict guidelines imposed. Medical home health agencies require extensive licensures including Medicare and Medicaid certifications. Most newcomers to this field are more likely to consider the less complicated non-medical home care venture with typically lower start-up costs. The focus here is aimed at this non-medical home care agency start-up.

Training and medical background

Formal training or a medical background is not required for owning and managing a home care agency. Many healthcare workers find this business endeavor attractive due their experience but it is by no means a prerequisite. Strong communication and organization skills with a well planned business strategy are more fundamental to success. Licensure requirements vary widely from state to state for non-medical home care agencies however are generally not so complex to discourage many from undertaking.

Basic Requirements and Advice

Some basic requirements apply to starting a home care business and Keep Safe Care will help you with these.

1. Set up Business Entity

Set up the business entity that will best fit your needs. (Sole proprietor, Partnership, Limited Liability Company, S Corporation, C Corporation). It is best that you spend the $1,000 to $2,000 to consult with an attorney and or CPA. Keep Safe Care will also will direct you to the appropriate info regarding payroll, sales tax, workers compensation and business liability insurance.

2. Obtain Employer ID Number

Obtain a Federal Employer Identification Number (EIN) from the IRS (IRS form SS-4) similar to your personal social security number to identify your business with regards to tax liability. This is something that can be done on line.

3. Register with Secretary of State

Register your business with Secretary of State in your state. With Keep Safe Care we have already recieved a registered Trademark for the name, and you will register as doing business as Keep Safe Care.

4. Check on license requirements

Check on requirements for city or county business license and apply as needed

5. Prepare your finances

Establish a business checking account and credit card account and apply for business loans if required to meet start-up costs. Set up a computerized accounting system.

6. Policy and Procedures Manual

Keep Safe Care will supply a Policy and Procedures Manual as part of your Affiliate License.

8. Market and connect with referral sources

Determine the best sources for referrals in your area such as connecting with long-term care facilities and hospital discharge social workers. Contact local physicians, senior centers, non-profits and rehab outpatient centers to reach prospective clients.

7. Find and hire caregivers

Find and hire the best caregivers available as the reputation of your business weighs heavily upon the quality of care delivered. Spend time interviewing prospects and checking references to find most competent, compassionate and resourceful caregivers.

Post employment ads on relevant job internet sites, at local community colleges with CNA and nursing programs and local newspapers.

9. Build a website

Hire a website designer to create a professional website with content directed towards internet savvy adult children of seniors who are responsible for securing home care services. Post your agency listing on established elder care websites with strong internet presence for greatest exposure.

10. Find an office space