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5 Common Challenges Startup Home Health Care Agencies Face

May 3, 2022 · 4 minutes to read

Demand for home health care is on the rise. There is a tremendous opportunity for home care agency startups to provide essential medical care, living assistance, and companionship to the country’s aging population.

Helping the needy: Woman holding senior woman's hand

There are also unique challenges in home health care that small business owners must deal with. From entering a competitive market to navigating red tape, here are five common challenges that you may face as a home health startup:

1. Writing a home care business plan

Home health startups are part of a growing and competitive industry. Before jumping headfirst into the field, you might consider writing a business plan. This document contains important research that can help you set and reach your business goals and stand out from the competition.

A home health business plan should cover important areas of running your business. These topics may include:

  • Research into the need and demand for home health care services in your area
  • Competitor research
  • Your business goals and timeframes for reaching them
  • Business operation budgets
  • Marketing strategies and budget

A well-researched and written business plan could help you grow your home health care business. It can serve as a guide during the early years of business by helping you stay on track with your goals and budgets. Home care business plans are designed to be updated as your business grows and your circumstances change.

2. Applying for licenses and permits

In-home care businesses are highly regulated in many states. You may need special licenses from the state to run home health agencies, nursing home startups, and other home care businesses. States, cities, and local jurisdictions might also require you to have specific permits to operate. The requirements for getting a license or permit vary from state to state, so you may need to be across the laws in multiple areas if your agency expands into other states.

Navigating the world of home health agency licensing is often complicated. However, it’s crucial that you apply for the correct licenses and permits to ensure that your business is operating legally. There are usually resources available through your state or local government to help you navigate the process.

Recommended reading:

How to get a home care license in Ohio?

How to get a home care license in Pennsylvania?

3. Finding the right business insurance

Insurance is another area that home health startups might struggle with. There are dozens of insurance options available to home health agencies in the United States. Understanding which policies are required and which are recommended might be challenging with so much else on your plate.

Home health provider insurance may be mandatory in your state. It’s advisable to review the requirements in your area, as you might need to maintain minimum levels of General Liability or Workers’ Compensation coverage. Other types of insurance, such as Cyber Liability or business interruption, may be recommended to help protect different areas of your small business.

4. Choosing the best technology solutions

Home care agency startups are increasingly looking to technology to improve patient care and help their businesses run efficiently. There are many tools to choose from, and finding the best matches for your business can take time.

In-home care businesses use many different tools to manage their business admin and patient care. Electronic medical records systems are vital for many agencies, as they allow caregivers to make updates in real-time that can be transmitted to the patient’s doctor or specialist. You might also consider cloud storage solutions for your business files, accounting software, website creation tools, and other office apps to manage the day-to-day for your nursing home startup.

5. Hiring and retaining staff

Home health aides are in high demand, and recruiting talented individuals to your business may be a challenge. Finding, hiring, and keeping the right people benefits your home health startup (retaining staff saves you the time and cost of frequently hiring new employees) and your clients (patients can count on continued care from people they know and trust).

When hiring staff for your home care agency startup, you may want to consider:

  • What requirements must staff meet to work for a home health agency in your state?
  • What resources are available to help you verify staff credentials, such as nursing licenses?
  • Will you offer on-the-job training to help staff earn necessary licenses?
  • How will you track caregiver hours?
  • Are you offering any additional work perks to attract qualified applicants?

Caring for America

Home health agencies must be prepared to face these and other challenges in home health care. If you can successfully navigate the obstacles, your small business could make a big difference in patients’ lives!

Ready to protect your home health startup? BizInsure helps home health care agencies find insurance that fits their needs. Compare policies now.

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