NURSING HOME BUSINESS PLAN GUIDE
Do you know how to start your own private nursing home business? How much does it cost to start a nursing home?
Health is wealth is the popular axiom that has gained prominence in discussions centering on Healthcare delivery and management.
Indeed, mankind has made enormous strides in ridding the world of killer diseases and other infectious illnesses, by a combination of improved medications and more advanced treatment procedures.
As a consequence, increasing parts of the world have populations that are experiencing longevity occasioned by better access to health care and positive lifestyle changes.
As more people reached advanced ages, the need arises for structures and facilities that can cater to the health needs of this age demographic.
The Nursing Home health subsector is a lucrative business idea for nurses in this regard, with the aged and elderly looking to have personalized care and attention.
Elderly people are usually unable to look after themselves and with more of the population living longer, there will be a commensurate increase in the demand for the best nursing home facilities.
The statistics also favor the establishment of a skilled nursing home.
Figures of nursing home business profit from some selected regions in the United States of America show that growth in the nursing home sector will reach figures such as 23.9% for the Southeast, 17.3 percent for the Great Lakes region, 12.9 percent for the West, and 12.7% for the Mid-Atlantic regions.
How to start up a Nursing Home
However, it should be noted that starting a nursing home in many countries, will require that the founder navigate and pass several hurdles that include medical, legal as well as employment laws and stipulations.
The following points can serve as guides toward successfully establishing a skilled nursing home for the elderly:
- HAVE A BUSINESS PLAN
Possessing a detailed elderly care business plan for establishing a Nursing home will confer focus and insight from inception.
A nursing home business plan should list the services that the home will be offering; will it be short term services such as catering the rehabilitation of patients recently released from medical facilities or will the home provide long term care for the aged suffering from diseases such as Alzheimer’s, Arthritis or some irreparable injury?
The business plan to start an assisted living facility is a useful tool for the founder to seek additional funding and assistance from Government grants and/or NGOs.
There are many care home business plan examples you can get online. You should also prepare a nursing home marketing plan for business promotion.
- SELECT A GOOD LOCATION
The site of the nursing home should also be taken into consideration. Accessibility to nursing home care should be guaranteed especially for clients who may elect to visit the facilities daily.
In addition, the location must be set up in such a way that satisfies all medical and legal stipulations as regards the health and safety of clients who reside there.
Another important consideration is the proximity of the selected location to hospitals and medical facilities, in case of emergencies.
The founder of a Nursing Home may be presented with options that include building a new facility from scratch, buying an existing facility, or obtaining one on lease.
- OBTAIN NECESSARY SUPPLIES AND EQUIPMENT
The nursing home agency should make adequate arrangements to obtain all the stock, supplies, and equipment that clients will require daily.
These will include wheelchairs, stretchers, desks, syringes, sanitary supplies, and so on.
In addition, the nursing care at home must have suitable arrangements in place for promptly restocking when supplies deplete.
- ENGAGING QUALIFIED PERSONNEL
A full care senior nursing home will have to engage the services of both medical and non-medical staff.
For medical personnel, the nursing home will require the services of a doctor (preferably a geriatrist), a physiotherapist, and nurses.
The latter should be expected to have garnered experience working with and giving care to the elderly; who will make up a good number of the home’s clientele base.
Essential non-medical staff will comprise those who will render cleaning services, meal preparation, carry laundry tasks as well as maintain the physical structures.
A Director of Services will oversee the smooth day-to-day running of the facility will also be required.
Other staff required will be an Attorney, who will ensure that the nursing home services meets with all the required legal and medical stipulations, as well as an Accountant, to take care of computing income and expenses.
- INSTITUTE AN INSURANCE POLICY
The founder of a nursing home company will have to seek an appropriate Insurance policy for the business from inception.
While nursing home agencies provide the care and attention that the elderly need, the possibility of lawsuits being instituted against the home, especially in cases of death and disability, still exists.
To prevent such lawsuits from being a drain on resources, a medicare nursing home can take up an insurance plan that will cater for such unforeseen scenarios as well as other circumstances that have the potential of disrupting the operations of the home care nursing outfit.
Associated Costs of Starting a Nursing Home Business
Liability Insurance is part of a startup nursing home costs and covers costs like legal representation fees, court costs, judgments, or settlements.
The types of insurance policies that can be instituted include general liability insurance, professional insurance amongst others. This is the basic nursing home startup information you need to open one.
Here is a sample business plan for starting a nursing home.
NURSING HOME BUSINESS PLAN EXAMPLE
The nursing home industry provides a vital service as it provides some of the most extensive care outside of a hospital. Lots of people require these services and you can start your own nursing home if you have the skills and passion.
Our nursing home business plan sample has been written with you in mind. If you are reading this, chances are that you are interested in this area of business.
With this sample business plan, new entrepreneurs get the opportunity to write their own plans following our general guidelines. The plan is highly important to the success of your business.
This is why you need all the help you can get.
We will help you achieve your desires. All you need to do is read through this entire sample plan to the end;
- Executive Summary
Olive Care Givers™ is a registered nursing home facility that will provide a variety of medical assistance services to clients. These will include custodial care services such as skilled care, room and board services, round-the-clock emergency care, and several others.
Our team is made of registered nurses, respiratory therapists, and physical therapists among others.
We will be located in Jackson City Mississippi and will offer our services to clients in need of quality nursing care.
Our nursing home business comes at a time when the need for such services is at an all-time high. The growing need has resulted in clients having to endure long waiting hours for available accommodations.
We are coming in to improve the situation and conditions of these clients.
- Our Services
Our services consist of a wide range of nursing care services that include custodial care services, monitoring, and medication services, round-the-clock emergency care, the provision of social and recreational services as well as room and board services.
These and more are offered based on the needs of individual clients.
- Vision Statement
At Olive Care Givers™ we are a business that seeks to make a difference. This is by establishing a business that touches lives.
Our professional nursing care services are designed to be among the best in the industry. This we seek to achieve through the adoption of best practices.
We do not just want to be like any other nursing home, but to be among the best.
- Mission Statement
Our mission is to provide quality services in a loving and warm environment. We consider the needs of our clients as paramount and vital towards achieving our goals.
Therefore we are committed to improving the lives of clients by reducing the waiting time for patients looking for accommodations. This will be achieved by making adequate accommodation arrangements.
Olive Care Givers™ will be financed through a credit facility obtained from one of the major banks in Mississippi. We are currently applying for the sum of $2,500,000.00 with a recurring monthly interest rate of 1.5%.
This loan applied for has a term of 10 years.
We will use these funds to rent an adequate space as well as purchase equipment and other facilities necessary. Running costs will take up 20% of the total amount.
- SWOT Analysis
To achieve success in running an efficient nursing home business, we have taken the initiative to conduct a test of our level of preparedness.
The information obtained has been really enlightening as we are focused on improving on areas that need such while taking full advantage of our opportunities;
Our strength as a nursing home business is that we have the capacity and skilled personnel to provide quality services. In trying to serve our clients better, we are investing in retraining our workforce on our values as a business.
This is in addition to the provision of incentives that will enable them to give their very best. We are driven by a philosophy of service excellence.
This is our main priority as a business.
Setting up a nursing home requires substantial investment. We are a new business that seeks to compete favorably in an industry where there are major players.
These are well-funded nursing home businesses that can easily outspend us in the area of marketing.
However, as a growing business, we consider this weakness as only temporal. We are doing everything we can to eventually position ourselves among the most competitive.
There are enormous opportunities for our nursing home business. With an increasing number of people needing nursing care, we are well placed to offer such.
To achieve rapid growth, we are determined to pursue an expansion drive that will see us opening more locations across the state of Mississippi within the next 6 years.
Threats to our business will come in the form of intense competition among nursing care service providers.
Fortunately for us, the situation is much easier now. Before such a time, we would have grown into a formidable force to effectively weather the storm.
- Sales Projection
As a serious business, we consider all our activities as vital towards achieving our set goals. Patronage is an important measurement of how good our performance is.
Based on the current demand in the industry and coupled with the services we will provide, we have done a 3-year sales projection. This has shown a lot of promise as reflected in the chart below;
- First Financial Year $250,000.00
- Second Financial Year $650,000.00
- Third Financial Year $1,500,000.00
- Competitive Advantage
Olive Care Givers™ has some of the finest collections of professionals in the industry. We have chosen a team consisting of highly experienced administrators as well as registered health caregivers.
Our business will benefit immensely from their enormous experience and professionalism. We have also put in place a marketing team that will drive our marketing campaigns to enable us to achieve maximum exposure.
- Marketing Strategies
Before choosing a nursing home service, most clients will conduct a review to check the competence of each.
We realize this and are determined to distinguish our business from the rest by embarking on a rigorous marketing campaign.
This will make use of the most effective channels available such as the mainstream media (print and electronic), billboards, and fliers.
This is in addition to working with health facilities to promote our business.
This nursing home business plan sample has sought to outline some of the key areas every good business plan should have. We hope that you will find this useful when writing your plan.
Good knowledge of the industry is a major determinant of how effective your plan is in the long run.