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:
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.
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.
- 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
- 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
- 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.
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.
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.
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.
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.
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.
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.