FAQs

If you're interested in working in this industry, we've created a list of FAQs on how to obtain a license for a home health care business and compiled some of our best advice on how to launch a non-medical health care business. Here's what you need to know:

What Is a Home Health Care Business?

A private home care business is essentially any company that provides non-medical care for the elderly, the disabled, or people with special needs. You are not in charge of giving medication or performing other such responsibilities, unlike a home care nurse.

What Is Non-medical Home Care?

Non-medical home care is based on the provision of basic daily support by trained caregivers or other non-medical home health providers (licensed and unlicensed). 

Home care assistants might cook meals, clean the house, assist someone with getting dressed or changed, or drive them to and from doctor's appointments. To keep senior citizens mentally active, they could also play board games or cards with them.

What Is Medical Home Care?

Medical experts provide medical home care, which includes general nursing services such as mental state and blood pressure monitoring as well as wound treatment. 

Senior citizens and patients who have recently been released from the hospital often need this
kind of care.

What Services Do Home Care Agency Owners Provide?

Private home care companies can provide a range of care services for the elderly. Personal care services, including dressing, bathing, grooming, using the restroom, and even minor housework are among the anticipated advantages.

Seniors can live in their own homes for as long as possible with the help of caregivers, who also perform light housekeeping. 

The private home care industry also offers the following services:

• Companionship during doctor's appointments

• Grocery shopping for medication and meals

• Social engagements

• Hair appointments

Do You Need a Specialized License to Run a Home Health Care Business?

A private home care business must submit an application for a specialized license in several states (be sure to have your federal employer identification number (EIN) available). 

Only 28 of the 5 states currently demand a specialist license; however, you'll need to get in touch with your state to find out the requirements. Canada does not have a specific license for private home health care businesses.

It's challenging to provide you with step-by-step guidance because the process differs greatly depending on your state or country. However, you'll often need to complete a certain training program and earn your CPR/AED certification and complete a police clearance at the very least.

You don't need a particular license beyond this in certain areas, but in others, you might need to attend additional courses for personal care and caregiver
training. 

What Items Should You Include In Your Home Health Care Business Budget?

If you want to have a successful business, we recommend including the following in your budget:
• Costs of incorporating your own home care business
• A professional website
• Software costs - scheduling, billing, communication, marketing, etc.
• Certification and licensing materials and test costs
• Payroll
• Office supplies
• Office costs
• Office equipment
• Nursing supplies
• Professional liability insurance

How Much Does it Cost to Start a Private Home Care Business?

Compared to other companies, starting a non-medical home health organization is actually relatively affordable. You don't need a lot of initial equipment, and if you operate alone, you won't have to pay for any additional personnel.

The costs associated with being licensed and certified in your state will often be the highest. You may be able to launch a company for less than $1,000 in some circumstances.

However, if you want a truck with a chairlift or any other specific equipment, the costs will be higher.

How Much Income Can You Make from a Private Home Care Business?

Are you curious about the projected income for your home health care business once it has started?

Considering that the national average fee for non-medical at-home care is around $27, based on how much you bill for your services, you might earn up to $50,000 a year or more.

Additionally, if you grow and add more staff, you may pay them hourly salaries, which typically range from $15 to $25 per hour depending on where you are located and keep the remaining earnings for yourself. Keep in mind that you always set your bill rates for your clients based on what you are required to pay to your employees. This variable cost model is very helpful to a growing business!

Your expenses will increase as your firm expands, but so will your profits!

What Are the Different Types of Home Health Aide?

A few common examples of non-medical home care business ideas include:
• 24-hour home health care: In order to ensure that an elderly or disabled person is safe and has all of their basic needs addressed, two caregivers who work 12-hour shifts each are typically assigned to this task.
• Senior needs assistance: This kind of home care focuses mostly on meeting a senior's daily requirements.
• Transportation services for the handicapped and elderly: You can focus on offering independent transportation services.
• PWD and elderly facilities and equipment: This can be a good idea for you if you enjoy working on home repair projects and are handy.

What Health Care Insurance Coverage Do You Need?

This varies based on the type of services you offer. However, you generally need the following:
• Professional liability insurance: This protects you from claims of incompetence, malpractice, and negligence. It is also known as "errors and omissions" insurance.
• Cyber security insurance: This type of business insurance can protect you from HIPAA penalties resulting from a breach or hack that leaks a customer's PII (personal identifiable information).
• General liability insurance: If you're facing claims involving property damage and third-party bodily injuries, this insurance is useful.


Is a Business Plan Necessary?

Yes, a crucial first step in figuring out whether or not your private home care business will be profitable and whether or not it's a worthwhile investment is creating a business strategy.

You'll outline the following in your business strategy, among other things:

• Business objectives and goals
• Your target demographic
• Your service rates
• Monthly budgets and break-even rates
• Expansion plans
• Your corporate values
• Licensing and certification costs

Without a plan, it's impossible to launch a profitable business, so when developing your business model, consider every area of your enterprise.

The Home Care 101 Starter Kit is an excellent place to start.

Do You Need a Marketing Plan?

Yes, this will help you gain more clientele. Your marketing efforts should target seniors and adults, adult children of seniors, and relatives of people with handicapped family members or seniors.

These three market categories should be the main emphasis of your marketing strategy. Asking medical professionals for referrals or permission to publish material or ads about your services in their clinics is a fantastic place to start.

It can be worthwhile to get in touch with a local advertising or marketing firm to find out how much they will charge to help you develop a marketing strategy.

Although doing it yourself can save you money, working with a pro will enable you to expand your company more efficiently.

Who Is the Target Market?

People who want to maintain their independence but want assistance with basic duties such as food shopping and cleaning might turn to home care providers.

Customers also require savings because they don't always have access to health insurance.

Researching the target market is crucial when learning how to launch a private home care service.

The intended audience could be:

• An individual who has just undergone surgery and wants to recover from the comfort of their own home - Generally, you can help them get their life back to normal once they've completed the treatment.
• A senior citizen who wants to live independently in their own home - You will often help them with the basics, such as bathing, dressing, and traveling to places.
• A person with a medical condition who needs assistance with general nursing services or chores, such as laundry and cooking.

Do You Need to Hire Staff Members?

Many small business owners start with just one member before expanding; therefore, it's not essential.

Choosing whether to use independent contractors who will receive a 1099 form or payroll employees is crucial when employing labor (1099-B) in the United States.

It would be beneficial if you also took the time to interview prospective employees, conduct thorough background checks, and request recommendations from former companies.

Hiring a mediocre worker could have negative effects and create liability problems.

To ensure that a candidate would be a suitable match for the position and would not cause any harm when working with customers or other professionals, it is always a good idea to ask for at least three professional references.

Do You Need to Choose a Specific Business Structure?

Home care agency owners should focus on launching their business legally. Based on what you want to call your company and how much liability protection you require; you can choose from a variety of business structures.

Because LLCs offer passthrough tax benefits and limited liability protection, numerous small-business owners opt for this business structure.

In Canada, an incorporated business offers many of the same benefits as an LLC.

What Certificates Do You Need?

Assume you want to operate a home health agency that contracts with Medicare or Medicaid to offer services such as physical therapy, nursing care, and other services and that hires professional caregivers or medical professionals to do so.

You should then submit applications for Medicare and Medicaid certifications. These credentials enable your company to obtain certification for offering home care services. Starting early is important because being accredited can take up to a year.

When it comes to applying for a business license, you need to either open a business checking account or an EIN.

Why Should You Start a Non-medical Home Care Business?

One of the healthcare sectors with the highest growth in the US is home healthcare. Nearly 12 million older Americans, many of whom are chronically ill, bedridden, paralyzed, or battling with Alzheimer's disease and other cognitive impairments, are served by home care workers, who include therapists, nurses, and personal assistants.

The time is now to change people's lives if you have a heart for compassion. You may better fulfill the demand for your services by investing in a proven business strategy that is well-liked by private caregivers.

Should You Create a Business Website?

We definitely recommend creating a business website. You have power over how your clients will recognize you when you create an online platform.

A quick and simple method for developing websites for your company is website building. You can easily create a website for your home care company using one of the many website builders that use drag-and-drop capabilities.

Two well-known website builders that make use of this creation tool are Squarespace and Wix. There are a variety of reasons why you shouldn't put off creating your website. It's not worth waiting if your company is small or operates in a sector where websites are optional.

Do You Need Your Own Office

While many small business owners choose to work from home, having an office can be beneficial. Setting up your office is essential for having a successful business once you've learned how to launch a private home care service. It is vital to choose a facility where care is accessible to the general public without being overly competitive.

Instead of spending money on expensive commercial office spaces, you can select a more affordable location that is still convenient for your staff. If your in-home caregiving company does not provide medical services, all you'll need are uniforms and a sizable marketing budget. However, if your firm is a caregiver with a medical license, you will need to make an investment in the necessary medical gear.

Do You Need Formal Skills and Training?

There is no need for any schooling or medical skills to launch a senior care business. The four most important qualities are common sense, sympathy for older people, honesty, empathy, and organizational abilities. These abilities are useful for running errands, scheduling clients, and maintenance duties at clients' residences.

Honesty ranks extremely high on the list of "essentials" since, without it, your clients won't ever put their trust in you or refer you to other seniors, which is the best way to grow your agency.