When thinking of homecare start-ups, you have a lot of data to consider. If you don’t know the process well, then you can spend a lot of money and never open your doors. The important part is to consider certain things first. We will focus here on Medicare certified agencies but know that certain things are true to all providers regardless the services.
There are several ways to make costly mistakes here. Let’s consider some things before you even make the decision to move forward in home health or hospice.
- Savings: Each state has different savings requirements prior to starting a homecare agency successfully. It is not unrealistic to say that you will need at least $150,000 to start an agency. It may mean up to $300,000.
- Manpower: You must provide services to patients while awaiting survey. This means you need to be able to pay staff during this timeframe.
- Time: Let’s say you decide to wait for the state to complete the survey to save money on accreditation costs. You may be waiting awhile. So, the amount of time you are covering the patients without reimbursement can change dramatically.
- Administration: CMS really wants engaged administrators at the helm of home health agencies. Maybe it is your intention to be the owner/ administrator. Then know front the beginning, that you cannot have a hands-off approach to daily operations. Stating that clinical operations are not your responsibility will not fly with the COPs. So, decide if you are going to jump in with both feet or hire an administrator. It may be that you should function as owner but are not prepared for the admin role.
- Consulting: Many move forward not considering working with homecare start-ups consulting. This can be very costly. Many do not realize the things offered by a consultant that relieve costs from them in the process. If you have not investigated start-up packages, then take a step back and do so. You will realize that policy and procedure manuals, competency testing, etc. are already completed for you. You do not need to start from scratch to get there.
Let Us Help With Your Start-Up:
At Kenyon Homecare Consulting, we have the staff with decades of experience in homecare start-ups. There is no need to do it alone. Doing it alone is a longer timeline and costs you more in the long run. Call us at 206-721-5091 or contact us online to see how we can help make the journey a reality.
This article entitled, "Homecare Start-Ups: Ways To Avoid Mistakes That Can Detour You Before You Even Start!" first appeared in Kenyon HomeCare Consulting blog.
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