How to Start a Home Healthcare Agency?
How to Start a Home Healthcare Agency , or in the process of a change of ownership you will need to have a Healthcare business plan for AHCA/CMS approval you will need to have a Healthcare business plan for AHCA/CMS approval. This new requirement took affect this year. How to Start a Home Healthcare Agency, or in the process of a change of ownership you will need to have a Healthcare business plan for AHCA/CMS approvalHealth Care business plan requires very specific content which is tied into your Medicare Cost Report Preparation and Proof of Financial Ability to Operate which needs to be prepared and signed by a CPA. The AHCA Home Healthcare Agency Healthcare business plan also lends your Agency a sense of credibility and a great blueprint on how to start a Home Healthcare Agency and plan to manage and market the company which increases your chances of success.
Although knowing How to Start a Home Healthcare Agency and writing a Healthcare business plan can be a lengthy, intimidating project, it is not necessarily difficult.
Here is an overview of how to How to Start a Home Healthcare Agency and write a Home Healthcare Agency Business Plan.
Your Health Care business plan needs to demonstrate that you have thoroughly considered all aspects of How to Start a Home Healthcare Agency and running an HHA. To that end, the following sample Home Health Care Business Plan is broken into major sections, covering everything from your Home Healthcare Agency mission statement to a detailed financial analysis.
Start a Home Health Care Business Executive Summary:
The first and most important section of your Healthcare business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched how to start a Home Health Care Agency and written the other sections.
The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals.
When starting an HHA you should have clear objectives on services to be provided to the patients. It should include revenue sources as will be reported during your Medicare Cost Report Preparation such as Medicare and Managed Care and Private Insurance coverage. It should include a demographic data about your target market with specifics on age and range of services to be offered.
One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan.
This is probably the easiest section. A bullet style portfolio as the example below illustrates is sufficient.
- Skilled Nursing at RN and LPN level
- Home Health Aide and CAN
- Physical Therapy
- Occupational Therapy
- Social Worker Services
The next section of your business plan focuses on Healthcare accounting budgets (ie Proof of Financial Ability to Operate) and market analysis. In order to show that your agency has a reasonable chance for success, you will need U.S. Census Bureau data on your states population and what percentage of the population is over 65 years of age. Furthermore, you’ll need statistical projections on what percentage of the population of the State and your County requires or are eligible for your Home Healthcare services.
Your market analysis should describe the industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as:
- The needs your company or product line will meet
- What media and/or marketing methods you’ll use to reach them
- What percentage of your target market you expect to be able to wrest away from your competitors
Level of Competition:
Your Business Plan must include a market analysis and results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors.
STRATEGY FOR MARKET ENTRY:
Typical strategies utilized are direct visits, brochures explaining the services the agency provides and by mail. Direct visits normally provide an opportunity for the agency to organize presentations to each individual company, hospital and physician offices.
Milestones and Timeline:
The plan should describe the major milestones and timelines for achieving them. The following is an example of the major milestones:
SET UP CORPORATION, LOCAL LICENSES AND OFFICE SPACE DEVELOP START UP PLAN
- CONTACT CONSULTING AGENCY AND ACCREDITATION AGENCY START COMPLIANCE WITH REGULATION
- APPLY WITH JOINT COMMISSION ACCREDITIATION AGENCY AND SEND APPLICATION TO ANCA
- SUBMIT THE INITIAL APPLICATION FOR HOME HEALTH AGENCY TO AGENCY FOR HEALTH CARE ADMINISTRATION
- BE READY FOR JOINT CONMISSION ACCREDITATION AGENCY SURVEY
- PASS SURVEY AND ACCREDTIATION PPOCESS
Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section at a minimum should include a bio on:
- Director of Nursing
- Alternate Administrator
- Alternate Director of Nursing
- Office personnel
Proof of Financial Ability to Operate:
State Statutes require applicants to show anticipated provider revenue and expenditures, the basis for financing anticipated cash-flow requirements of the provider, and an applicant’s access to contingency financing. All schedules must be prepared in accordance with generally accepted accounting principles (GAAP). CPA Firms must compile, examine, or apply agreed-upon procedures to prospective financial statements, including summaries of significant assumptions and accounting policies. An applicant will have demonstrated Proof of Financial Ability to Operate by completing schedules 1-7 in conformity with the below instructions and GAAP, all relevant rules and statutes, and projections that show assets, credit, and projected revenues meet or exceed projected liabilities and expenses and Independent evidence of sufficient funds for starting a Home Health Care Agency, working capital & contingencies.