How to Start a Home Healthcare Agency

by Pat Fontana

Overview

As the population ages, the need for home health care is growing. In addition to the elderly population, patients who are rehabilitating from surgery or serious illnesses also will require home care as they recover. Many patients prefer to receive follow-up treatment at home, where they are most comfortable. Insurance companies may require that post-operative treatment be administered in the patient's home to reduce costs. The following provides steps you will need to take in order to start a successful home healthcare agency.

Step 1

Work with a small business counselor to write a business plan for your agency. A counselor can guide you through the process of learning more about your target market, such as the elderly, as well as researching local and state requirements for operating your healthcare agency.
Step 2

If you will be hiring nurses and aides to work for your healthcare agency, conduct thorough investigations of their employment history and criminal records. Do no rely on references they provide; use an online service that conducts background checks for a small fee.
Step 3

Determine the appropriate licensing and accreditation requirements for your particular healthcare agency. Requirements vary with local and state governments. You should also consider applying for national accreditation through organizations such as the Community Health Accreditation Program or the Joint Commission on Accreditation of Healthcare Organizations.
Step 4

Work with your insurance agent to purchase sufficient liability insurance, according to your needs and your state's laws. When you are working in clients' homes, you also will need to become bonded, a process that your insurance agent can also assist you with.
Step 5

Work with hospitals, rehabilitation centers and senior agencies to promote your business. Use established contacts in the industry to begin asking for referrals.

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Set up your agency to be able to accept Medicare payments, as most of your clients will be elderly.
Set up your agency to be able to accept Medicare payments, as most of your clients will be elderly.
Keep your paperwork current, and file any necessary papers or reports with your state regulatory agency to ensure you do not lose your license and accreditation.
Keep your paperwork current, and file any necessary papers or reports with your state regulatory agency to ensure you do not lose your license and accreditation.