How to Start a Home Health Care Business

Step-by-Step Guide

1. 1

   Step 1: Gain experience in the health care field.

   Nurses, administrators, physical therapists and other health care professionals will be able to use their industry knowledge to develop a business plan and gain credibility.
   
   If you do not have this experience, you may want to partner or employ people with medical experience.
2. 2

   Step 2: Research what home health care businesses are available in the area.

   You should aim to provide a new service or a similar service in an area of high demand.
   
   Do market research to study competitors and business possibilities. , Complete a detailed analysis of your business structure, management, financial needs, marketing and growth plan for at least 5 years in the future.
   
   This will be necessary for gaining investors or loans. , Your business name should identify the services you provide.
   
   Your legal structure may include partnership, corporation, limited liability corporation, sole proprietorship or limited liability partnership. , Your state board of health will list application and compliance rules.
   
   Plan to become compliant as soon as possible so that you can apply and be inspected as soon as your documents are filed. , You will need to file different documents depending upon the structure, as well as a "Doing Business As" (DBA) certificate and Federal Employee Identification Number (EIN). , Consult your Clerk of Court about where and how you can apply to for this document. , You may be required to undergo a compliance exam.
   
   If you fail the application process, you will improve your compliance and reapply. , You may want to hire a bookkeeper, accountant or tax professional to help you.
   
   This system will be essential in being accepted by Medicare and private insurance companies. , Treating patients requires that you have exceptional liability insurance for you and your employees.
   
   It may also be necessary through your state board of health.
   
   In some states, you may also be required to provide worker's compensation insurance. , You may consider hiring a health care administrator, nurses, drivers, carers, customer service/billing representatives and more.
   
   Make sure to do background checks so that you can establish a credible and experienced agency. , Most health care companies will require an investment in vehicles, health care equipment and uniforms, among other things. , You may need to adjust some features of your business in order to become compliant to submit for Medicare payment. , Apply to be part of their provider network.
   
   You may need to offer discounts and sign agreements, but this will increase your patronage.
3. 3

   Step 3: Write a business plan.

4. 4

   Step 4: Name your business and choose your structure.

5. 5

   Step 5: Research the requirements to run a home health business.

6. 6

   Step 6: File the applicable documents with your Secretary of State and County Clerk of Court.

7. 7

   Step 7: Apply for a business license with your county or city.

8. 8

   Step 8: Apply for a state board of health permit.

9. 9

   Step 9: Establish a medical billing system and payroll system.

10. 10

    Step 10: Find liability insurance.

11. 11

    Step 11: Hire employees.

12. 12

    Step 12: Buy equipment.

13. 13

    Step 13: Apply to become a Medicare provider through the Center for Medicare Services.

14. 14

    Step 14: Contact private health insurance companies that operate in your area.

Detailed Guide

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