How to Start a Home Health Care Services Business

As baby boomers begin retiring, interest in home health care has increased, reports Matthew Bandyk of U.S. News and World Report: "Baby boomers loath the idea of being stuck in nursing homes." According to Bandyk, this has spurred health care planners to prepare for the almost 80 million Americans born from 1946 through 1964, a figure reported by the Bureau of Labor Statistics. Home health care is proving to be a profitable industry, with an average wage of $71,450 for managers in the home health care services industry, according to the Bureau of Labor Statistics.

Things You'll Need

• Business plan
• Employer Identification Number
• Business license

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Instructions

• 1

  Apply for licenses and a federal tax ID number. Every business in the United States is required to have an IRS-issued EIN (employer identification number). This is free and available from the IRS via phone, online, fax or mail. Also, contact your local health department to learn your state's regulations and processes for opening your health care business. This process is very lengthy, and regulations will vary from state to state. For this reason, it is important to start this process as early as possible. Many states require workers to submit to drug and background checks.

• 2

  Write a business plan. This is vital to business success; also, your financing company and state health department often require copies of your business plan. It will also help you complete the applications and forms required for state licensing. Be sure to contact your local health department for information about the regulations of operating your home health care business. These regulations vary from state to state. Your business plan must detail your home health care business' mission, objectives and organizational structure appropriate to your city and state.

• 3

  Find office space. Many states will allow you to have a home office or an office building; however, you will need a permanent location to meet with clients and employees and maintain your files and paperwork. Your health department will provide you with state-specific regulations on where you can establish your home health care office and what information you must keep on hand there (e.g., copies of licenses and employee lists).

• 4

  Recruit health care providers. Create a recruiting and information package to give to prospective employees. Also, create application forms that include questions about their credentials and health care experience. You can also use classified ads and employee search sites, such as Monster, to find potential employees.

• 5

  Find new clients. Develop a network with social workers and other health care facilities to find new clients. You can expand your base of customers by completing the application process for accepting Medicare and Medicaid patients. You can find information about how to become a Medicare and Medicaid service provider on the Centers for Medicare and Medicaid's website, CMS.gov.