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How to Start a Nursing Home Using These Resources

July 23, 2020 1587 views

 

Here Are All the Issues You Need to Consider Before Starting Your Nursing Home

This post includes a resource section containing a comprehensive collection of articles written by various authors to give insights and the steps necessary to start your nursing home.

Before you get to the resource section of the post, we can go over the critical issues you’ll want to consider before you start. This can help you decide if this is the right type of business for you. Also, you may discover issues that you haven’t considered.

A Much Needed Service

Starting your own nursing home is a needed service in many populated areas. There is always an aging generation that needs special care in their old age.

It’s challenging for family members to take care of their aging loved ones because of their current responsibilities and jobs. Even if they weren’t working, it’s challenging to provide 24-hour care seven days a week.

Are You Starting This Business For The Right Reasons?

Whenever starting a business, you want to make sure you’re starting it for the right reasons.

  • Some people start a business for the money.
  • Others will start a company to be in control and be their own boss.
  • Others do it for the passion they have for the products and services they provide through their business.
  • Others start a business, for a combination of all the above reasons.

It’s my recommendation that your main reason for starting a business is to be passionate about the type of business your starting.

When you’re passionate about what you do, you’ll have a driving force to succeed.

When problems show up, and you’re passionate about your business, you’ll look for solutions. When you lack passion and problems show up, you’ll look for ways to get out of the business.

Here are two questions that can help you clarify your intentions:

Question One:

Are you prepared to work in an environment surrounded by people near the end of their lives and require constant care? These people may be experiencing discomfort, depression, pain, dementia, disorientation, etc. You need to be the type of person that is empathetic, caring, and able to look at the positive in these situations.

Question Two:

If you had all the money you would ever need for the rest of your life, would you run this type of business? If your answer is yes, then you are on the right track, if you answered no, then what would you do instead?

Pros and Cons of Running A Nursing Home

Starting a nursing home is an excellent service you can provide to many people who need this level of care during this stage of their life.

It’s not an easy business to run. There are many pros and cons. You’ll find a lot of pros and cons in the resources section of this post. Below are a few brief ones to consider.

Pros:

  • A service that is in high demand in many areas
  • A noble service you can be proud of
  • A nursing home can be profitable when you set it up correctly

Cons:

  • High startup cost
  • High risk of lawsuits
  • It’s challenging to find dedicated long-term staff
  • Sufficient staffing may be challenging at times
  • This is a 24/7 operation, it’s never closed
  • A large team is required to operate a successful nursing home

What Type of Nursing Home Will you Provide?

There are different types of services for nursing homes, will you focus on a retirement home where residents can care for themselves. Or will you focus on people that need daily care 24/7? Some homes provide a combination of residents that require full-time care, and others only require living quarters and housekeeping services.

What Services Will You Provide

Have you considered what services you’ll be providing in your nursing home? You don’t have to offer extensive services when you start unless you have the funding, and there is a demand for the services.

Once you start your nursing home, you should always be looking towards continuous improvement. Below are a few ideas for services you may want to consider now or for the future

  • Monitoring of medication
  • 24-hour nursing supervision
  • Laundry service
  • Housekeeping
  • Assisted care with; dressing, bathing and using the washroom
  • Provide meals according to individual diets
  • A weekly checkup by a doctor
  • Social activities to keep residents; socially, emotionally, and intellectually engaged
  • Rehabilitation services
  • Dental services
  • Provide personal care items as part of the service
  • Hairdressing and Manicures
  • Chiropractic care
  • More in the resources section of this post

Is There A Demand For A Nursing Home In Your Location?

You need to do some market research to see if there is a demand for a nursing home in the location you’re planning to operate. The ideal location is in an area where there is a large population of senior citizens. If there is no demand, then there is no reason to open in that location. You will need to look for a different location.

Looking at it from another perspective, if there are too many nursing homes in the area, you may have a hard time competing in the market. You will have to offer a service that is desirable and not available. You could also improve on a service that is performed poorly.

When running a nursing home, one of the essential competing factors that can put you above the rest is the service you provide. Providing excellent care for your residents can make your home the most desirable. The one thing people care about most is having their loved ones in a place they can trust and have peace of mind that they will be cared for properly.

Startup Costs

In the resources section, you’ll find a lot more information about startup costs. Here’s one thing you won’t find, and that’s the specific cost of your startup because there are too many variables involved.

For example:

Will you buy the building or lease it?

Where will you locate?

How may residents to you plan to have?

What type of services will you offer?

What type of equipment will you purchase?

All of the above will determine your startup costs. Unless you know the answers to the above questions, it will be challenging to estimate the capital investment you’ll need.

One thing you can do is look for nursing homes that are for sale.

Don’t expect anything lower than 150,000 dollars. You could be looking at around 4 – 6 million for a mid-range home when purchasing the building.

Insurance

With many businesses, insurance is an essential area you’ll need to focus on. When operating a nursing home, you’ll want to make sure you have the coverage you need for your residents, property, and business.

You could be faced with a lawsuit at any time or have an accident where a resident gets hurt, and you want to make sure you have all bases covered.

Business Setup

You’ll want to deal with a law firm that is reliable and experienced with long term care facilities. You want clear cut policies that residents and family members can understand. You want to limit your liability and make sure you are operating under the policies and laws in place by federal, state/provincial, and local governments.

A law firm and accountant can help you setup your nursing home legally and help you apply for the permits and licenses you will need.

You’ll want to set up the company in a way that will protect your personal assets.

A competent and experienced lawyer can help you identify what route to take. You can meet with a few to see who you are comfortable with. It’s also a good practice to do some research after meeting with a lawyer to see if there are any questions that you may not have thought of that you can ask the next time you meet.

An Inside View of The Nursing Home Business

There’s nothing like an inside view of the business your planning to start!

There are a couple of ways of doing this.

One:

You could contact people that own nursing homes and see if they would be willing to meet with you and give you some advice.

When doing so, you want to make sure that there is no threat of you being in competition with this person. It would be better to contact people distant from the area you plan to operate. If they sense you’ll be competing with them, they won’t give you the right information or won’t meet with you at all.

Two:

Look for a nursing home that is for sale. Using this approach is what I would suggest because there are many benefits to this tactic. You can look into the financials of the operation. You can tour the premises. You can speak to the staff. And you can get a real feel of what it’s like to own and operate an assisted living facility. You can also talk with the owners for insights and advice. Use this approach to visit as many companies for sale, and you’ll gain a lot of tips and ideas that can prove invaluable.

In addition to all the information you get. You may find that purchasing a nursing home that is already operational and has residents may be better than starting from scratch. If you do find something suitable, you’ll want a good lawyer to make sure you’re buying the business and not any past liabilities or problems.

Nursing Home Resources

In addition to everything we have covered above, now it’s time to look at the resources. I put together a long list of articles that can help you decide if you want to get into this business. You’ll probably come across some issues you haven’t considered.

Each resource leads to an article that can give you the answers you’re looking for. Keep in mind each article is written by a different author, which provides you with a broad perspective of opening your own nursing home.

You may want to bookmark this post for future use because there is too much information to go over in one visit.

Considerations Before You Start

What You Must Consider Before Starting Your Business

How to Start a Nursing Home

Nursing Home Business Plan Sample – Executive Summary | Bplans

How to Start a Nursing Home | Bizfluent

How To Open An Assisted Living Facility

How to Start a Nursing Home Business With No Money | ProfitableVenture

How to Start an Assisted Living Facility

How To Start a Senior Home Care Business For Under $900 – Senior Service Business

How to Start a Home Nursing Business | Chron.com

From nursing home employee to owner – Business – Small business | NBC News

The Pros and Cons

What are the Pros and Cons of Nursing Homes?

The Pros and Cons of Remaining at Home vs. Going into Assisted Living | Loretto

Pros and Cons of Small-Scale Long-Term Care Facilities

Pros and Cons of Nursing Homes –

5 Disadvantages of Nursing Homes for Seniors | Family Matters

Home Care vs. Nursing Homes: Exploring the Disadvantages of Nursing Homes

Trends and Statistics

FastStats – Nursing Home Care

Nursing Home Facts and Statistics | U.S. News

75 Must-Know Statistics About Long-Term Care: 2018 Edition | Morningstar

Profitability and Revenue

Value and nursing home profitability – Jan Clement, 2016

Care Suffers as More Nursing Homes Feed Money Into Corporate Webs – The New York Times

Profits over patients: Advocates say there’s a reason bad nursing homes don’t improve | PA Post

Bloomberg – Are you a robot?

Startup and Operating Costs

How Much Money Do I Need To Start an Assisted Living Facility?

How To Run A Senior Living Home: Expenses

Building a nursing home: what is the cost? Expert contractor, builder

Equipment

Nursing Homes | Medical Equipment | Medical Supplies

Long Term Care & Assisted Living Products for Sale | QuickMedical

Long-Term Care & Home Health Care Supplies – AliMed

Licenses

Licensing & Certification Requirements in Nursing Homes | Study.com

What license is required to run a nursing home? – Quora

Nursing Home Licensure and Certification

Insurance

Essential Insurance Policies for Skilled Nursing Facilities

Nursing Home Insurance – Buren Insurance Group

Senior and Assisted Living Facility Insurance – Nationwide

Business Insurance for Nursing Homes | Brookhurst Insurance Services, LLC

Business Insurance for Short & Long Term Care Facilities

Insurance for Nursing Home Operators:: Nursing Home Law Center

Here’s Everything You Need To Know About Business Insurance

Employee Considerations

Types of Nursing Home Employees – Nursing Home Abuse

Types of Nursing Home Employees – Types, Requirements & Licenses

Nursing Home Staff – Skilled Nursing Facilities

What Nursing Homes Do to Retain Quality Staff

How to Finance Your Business

Senior Care Center Loans & Financing Options

Home Care Loans from Live Oak Bank | Grow Your Senior Care Business

Home Health Care Agency Loans – Nursing Service Financing – GUD Capital

Financing Assisted Living Facilities | Investment Funding

Here’s Everything You Need To Know About Business Loans

Business Name Ideas

Home Care Business Name Generator + (Instant Availability Check)

1,000+ Home Care Business Name Ideas + Availability Check

201 Good Catchy Home Care Business Names – BrandonGaille.com

35 Eye-Catching Home Care Business Names Ideas 2020

Business Plan

Nursing Home Business Plan Sample – Executive Summary | Bplans

Nursing Home Business Plan Sample – Services | Bplans

Nursing Home Business Plan | OGScapital.com

Vintage Home & Residential Care
Business Plan

How To Write A Business Plan Using This Unique Collection of Resources

Business Cards

Nursing Home Care Business Card Template | MyCreativeShop

Latest Image Search Results Related to Nursing Home cards

See Our Resource for Creating Attractive Business Cards That Work

Logo

Nursing Home Logos | 390 Custom Nursing Home Logo Designs

Free Nursing Homes Logo Designs – DIY Nursing Homes Logo Maker – Designmantic.com

Nursing Home Logo Images, Stock Photos & Vectors | Shutterstock

Nursing Home Health Care Logo Vector Images (over 210)

Latest Image Search Results Related to Nursing Home Logos

See Our Resource for Tips to Create an Impressive Logo

Software

Best Nursing Home Software | 2020 Reviews of the Most Popular Tools & Systems

Best Long Term Care Software | 2020 Reviews of the Most Popular Tools & Systems

Best Long Term Care Software – 2020 Reviews & Pricing

Nursing Home Software 2020 – Best Application Comparison | GetApp®

Nursing Home Businesses for Sale

Nursing Homes for Sale | Buy Nursing Homes at BizQuest

Assisted Living and Nursing Homes For Sale – BizBuySell.com

Care Homes For Sale, 234 Available To Buy Now in the US

Assisted Living and Nursing Homes For Sale – BizBuySell.com

Latest Search Results Related to Nursing Home For Sale

Nursing Home Franchise Opportunities

Home Care Franchise Opportunities, Home Care Franchises for Sale | FranchiseDirect.com

Franchise – Avendelle Assisted Living Homes

BrightStar Care | Home Health Care Franchise

BeeHive Homes|Assisted Living Franchise|Nursing Home Franchise|Elderly Care Franchise

The 12 Best-Liked Home Care Franchises – Home Health Care NewsThe Ins and Outs of Owning A Franchise

Established Nursing Homes

Find Nursing Home Ratings, Pricing Requests, Advice and More | US News Best Nursing Homes

Best Nursing Homes category

US News & World Report Names National Centers “Best Nursing Homes”

Marketing Tips

Effortless Ideas to Add to Your Nursing Home Marketing Plan

A 7-Part Guide to Marketing a Nursing Home

Top 25 Nursing Home Marketing Ideas from the Pros

How to Develop a Marketing Plan for a Nursing Home | Chron.com

Essential Strategies for Skilled Nursing Facility Marketing

Effective Marketing Strategies For Nursing Home Operators & Owners :: Nursing Home Law Center

3+ Nursing Home Marketing Ideas Worth the Investment

5 Effective Nursing Home Marketing Strategies | Lead to Conversion

5 Marketing Ideas To Improve Your Skilled Nursing Home Marketing

Article Mix

Quality Care: How to Run a Nursing Home Successfully

Running a five-star nursing home – Center for Public Integrity

5 Qualities of a Great Nursing Home | Best Nursing Homes | US News

Residential Facilities, Assisted Living, and Nursing Homes

A Better Nursing Home Exists—Why Isn’t It Everywhere? – The Atlantic

What You Need to Know About Nursing Homes

What are the challenges in running a nursing home? – Quora

Who Runs the Nursing Home? CNA’s

U.S. Nursing Homes Struggle in Ever-Tougher Market | LDI

The Current Challenges Facing Nursing Homes – Caitlin Morgan Insurance Services

20 Common Nursing Home Problems – and How To Resolve Them

Nursing Home Levels of Care: Problems and Alternatives

Challenges In Nursing Facilities: Best Practices

Resources for Running a Business

Acey Gaspard’s Guide to Starting a Small Business — Made Simple

The Nine-Hour Business Tune-Up

Learning Center SBA.gov

Entrepreneurship Course Online | HBS Online

LinkedIn Learning: Online Courses for Business

Online Courses — Anytime, Anywhere | Udemy

Courses on Coursera.org Related to Business

Courses on Skillshare.com Related to Business

Starting a Home Care Business – 5 Common Mistakes to Avoid

The Top Ten Mistakes Home Care Owners Make

Top Three Mistakes New Home Care Franchisees Make – Home Health Care News

Publications

Useful Links: Handbooks, Books and Videos About Long-Term Care

Publications Resources

Provider Magazine

Nursing Home Publications

McKnight’s Long-Term Care News | Post-acute care & skilled nursing

Your resource for seniors housing real estate and operations news and insight. – Seniors Housing Business

Top 100 Nursing Blogs

15 Awesome Nurse Blogs to Follow – NurseJournal.org

Top 40 Nursing Blogs to Follow in 2020 | Carson-Newman

Terminology

Glossary of Nursing Home Terms

Medicare Nursing Home Compare Glossary

Home Health Care Glossary

Books

Books from Amazon Related to Nursing Homes

Google Book Search Related to Nursing Homes

The Latest about Nursing Homes

Google Searches

Latest Search Results Related to Nursing Homes

Latest Scholar Search Results Related to Nursing Homes

Latest Image Search Results Related to Nursing Homes

News

Latest News Related to Nursing Homes

Twitter

Tweets Related to Nursing Homes

YouTube

Videos Related to Nursing Homes