As the population ages and health care providers concentrate on maximizing their ROI, the field of home health care is growing rapidly. The following is an overview of startup considerations for those who are thinking of creating their own home health agency.
Medical or non-medical?
There are two basic categories of home care, although some agencies provide care in both categories. A non-medical home health agency sends caregivers to clients’ homes to assist with basic living needs. Tasks may include social interaction, transportation, housekeeping, and meal preparation, or they may be more hands-on: personal care, hygiene, and reminders about taking prescribed medications.
Medical home health agencies employ licensed providers such as nurses and physical therapists that provide in-home care under the guidance and direction of the client’s physician. An agency providing this type of service must undergo detailed licensure and certification requirements in addition to all other aspects of starting a business.
Focus on government regulations
Whatever level of home health care an agency intends to provide, the first step in business planning is to review all relevant laws and regulations. Many state licensing boards provide packets especially created to help home health agencies organize and meet their requirements. Local jurisdictions will have further regulations, and new business entities also need to obtain an employer identification number from the federal government. Home health agencies which want to receive Medicare certification must comply with federal collection and transmission requirements of OASIS (Outcome and Assessment Information Set). Fortunately, easy-to-learn software is now available for integrating OASIS guidelines into all patient records.
Decide on a business structure
Home health agencies in the formation stage can choose among several types of business structures, depending on the specific situation. Their choices include becoming an S corporation, C corporation, limited liability company, partnership, or sole proprietorship. There are significant tax considerations attached to each of these choices, so it’s always a wise idea to consult with a business attorney or CPA before making the final decision.
Hire, train, monitor and give feedback to caregivers
Recruiting and maintaining care providers of the highest caliber is the most important element of running a home health care agency. Online teaching guides are now available in many languages and customizable forms so that caregiver skills can be continuously upgraded. Furthermore, centralized clinical and progress notes allow managers to supervise all aspects of delivered care.
Maintain accurate, confidential patient records
High-quality home health care depends on accurate record keeping. Now that records can be easily stored in the cloud, and mobile devices provide real-time access to a patient’s full data set, the efficiency (and cost-effectiveness) of providing home health care is greatly increased. Members of a care team have updated access to patient records, while electronic signatures provide the privacy protection required by HIPAA. Electronic point-of-care documentation verifies that medicines and other therapies are administered on schedule.
The appearance of Web-based software solutions has been a game-changer for everyone involved in the delivery of home health care, and managers, care providers, and financial staff are now able to collaborate more effectively than ever before. The new online tools make it easy to create and run a new home health care agency.
