The startup costs for a home healthcare agency can vary widely based on your geographic region, initial size of the business, and the amount of staff you will hire at the onset of operations. Skilled care home healthcare agencies incur a higher cost as a result of their more specialized services. For skilled care agencies, these fees can range from $50,000 to $250,000. The breakdown of these costs are generally as follows:
- Professional Fees and Licensure $5,000 to $10,000
- Furniture, Fixtures, and Equipment – $3,000 to $15,000
- Vehicle (optional) – $20,000 to $50,000
- Working capital (six months to one year) – $50,000 to $150,000
In many instances, these costs can be reduced if you intend to start the business as a home-based enterprise. However, many entrepreneurs feel that it is beneficial to start their businesses with a formal office in order to provide a more professional appearance especially when skilled care is rendered. Most importantly, you will need to work with an attorney in order to properly secure your company’s ability to acquire Medicare licensure. This will allow you to receive ongoing fees from the federal government when certain clients need a comprehensive degree of care.
Non medial home care businesses require substantially less capital. This is principally due to fact that these business typically do not require licensure in the state where they operate. There are exceptions to this and you should always consult with an attorney to determine which laws and licenses are applicable to your business. The non medical in home care startup costs are as follows:
- Professional Fees and Licensure – $1,500 to $3,000
- Furniture, Fixtures, and Equipment – $3,000 to $10,000
- Vehicle (optional) – $20,000 to $50,000
- Working capital (six months to a year) – $25,000 to $75,000
The personnel costs for a non medical in home care agency is substantially less than its skilled care counterpart. This is due to the fact that registered nurses or licensed practical/vocational nurses are not required to render this type of service. This substantially reduces the payroll costs that are associated with this type of enterprise.