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Buy Home Health Care Business

Due to the aging of baby boomers and increased life expectancy, the number of senior citizens over the age of 65 is increasing every year. With that comes the increasing need for medical and personal care as well. This offers great business opportunities for entrepreneurs in the healthcare industry.

buy home health care business

Home care that is provided by caregivers is based around the need for basic day-to-day assistance. For example, home care aides will prepare meals, clean the house, help change or dress an individual or drive them to or from doctors appointments.

This is the first step in starting any type of business. You need to make a business plan for your home health care agency because it is the base of your company and will be needed for each step to follow. A business plan includes the following:

You will also need to incorporate your business, get your tax identification and register for your NPI (National Provider Identification) number. These requirements for starting a home health care agency depend on a state-to-state basis.

Be aware that this process of becoming accredited can take longer than you think, sometimes even up to a year. To apply and go through the survey process, visit In addition to getting these certifications, some states require business owners of home health care agencies to complete a jurisprudence exam.

Once you start billing Medicare, Medicaid or third-party insurers, the slow payment periods can cause some stress on you as the business owner. Accounts receivable factoring is used by home healthcare agencies and businesses to bridge the gap between payment periods.

Invoice factoring allows you to be advanced an amount to pay employees and continue growing your healthcare business. You company will have more money for expenses and take the stress of cash off your mind so you can focus on your business operations.

The only constant for home healthcare agencies is change. For many owners of agencies, change is both demanding and fatiguing. At some point, owners start thinking about exiting their company. Some owners elect to pass ownership down to their adult children. Some stop taking on new clients/patients and simply close their doors. Others seek to sell their company in the marketplace. This column is written for those owners considering selling in the marketplace.

The merger and acquisition (M&A) market for home healthcare agencies is currently very robust, with buyers eagerly gobbling up well-performing agencies. As such, this may be the best time to sell if you're looking to get the highest price, best terms, and well-suited buyers.

Why are buyers eager to buy? Home healthcare agencies are one of the fastest-growing industries in the healthcare sector. Thanks to an aging population, an increase in chronic diseases, the growth of physician acceptance of home healthcare, medical advancements, increased demand for home-based care (especially for the elderly or in times of a pandemic), and a movement toward cost-efficient treatment options from public and private payors, the industry has flourished. Moreover, the industry is anticipated to grow over the coming years, which will allow providers to compete effectively with institutional care agencies, such as hospitals.

According to the Medicare Payment Advisory Commission's ("MedPac") March 2019 report to Congress, between 2004 and 2016, the number of home health agencies increased by over 60%. Currently, there are approximately 12,000 active home health agencies in the market, and as of 2017, approximately 98% of Medicare beneficiaries lived in a zip code with a home health agency.

Total Medicare spending on home health services increased by 108.2% from 2000 to 2017. MedPac estimated operating margins for freestanding home health agencies to be approximately 4.5% for the blended all-payor margin.

Market multiples refer to the estimated purchase price, or enterprise value, related to adjusted EBITDA. The typical range of market multiples for home healthcare agencies is 4x to 6x of adjusted EBITDA. A particular provider falls within the range based on quantitative factors such as historical and projected financial performance, and qualitative factors as highlighted above in the "What Home Health Buyers Are Looking For" section. Moreover, size matters, as larger revenue agencies attract more buyers than smaller agencies.

VERTESS is the advisor of choice for many home healthcare agencies/agencies business owners because of our track record of success and deep industry expertise. It would be best to speak with an advisor at least annually to understand the market and your options.

VERTESS is headquartered in Dallas/Fort Worth, with additional offices in Phoenix, Tucson, Los Angeles, Denver, Boston, and Orlando. For more information visit We are always looking for new Managing Directors with experience as either an owner or director of a healthcare enterprise. Please contact Vaughne Glennie via our Contact page if you are interested in joining our team.

For purposes of the health care tax credit, one FTE generally equals 2,080 hours per year. This is different from other provisions of the Affordable Care Act that count 30 hours per week as one FTE. Any number of part-time employees that work a combined number of hours equal to that of a full-time employee equals one FTE. For example, two half-time employees count as one FTE; 20 half-time employees is equivalent to 10 FTEs. Exclude from the calculation the hours that exceed 2,080. Also exclude seasonal employees who work 120 or fewer days per year from the calculation of the number of FTEs and average annual wages; however, the health insurance premiums paid by the employer on behalf of these employees may be counted in determining the amount of the credit.

Home health care is a wide range of health care services that can be given in your home for an illness or injury. Home health care is usually less expensive, more convenient, and just as effective as care you get in a hospital or skilled nursing facility (SNF).

If your doctor or referring health care provider decides you need home health care, they should give you a list of agencies that serve your area. They must tell you whether their organization has a financial interest in any agency listed.

The Indiana Department of Health (IDOH) licenses agencies that provide nursing services, physical therapy, occupational therapy, speech therapy, medical social worker, home health aide, and other therapeutic services to the patient at the patient's temporary or permanent residence. IDOH inspects state licensed home health agencies for quality of care to citizens of Indiana and to ensure compliance with state law and rules. IDOH also monitors agencies, on behalf of the Centers for Medicare and Medicaid Services, for quality of care for all citizens in need of those services and to ensure compliance with federal regulations.

Report an incident regarding a health care facility The Incident Report Form is for health care facilities to notify the Indiana Department of Health of a reportable incident pursuant to the IDOH Reportable Unusual Occurrence Policy. The Incident Report Form is also for health care facility staff (nursing homes, intermediate care facilities, and hospice agencies) to report a reasonable suspicion of a crime against a resident pursuant to Federal regulations. This form is not to be used to file a complaint.

Quality Improvement Organization Information - A Quality Improvement Organization (QIO) is a group of health quality experts, clinicians, and consumers organized to improve the care delivered to people with Medicare. QIOs work under the direction of the Centers for Medicare and Medicaid Services (CMS) to assist Medicare providers with quality improvement and to review quality concerns for the protection of beneficiaries of the Medicare Trust Fund.

Resources on this page provides links to applicable rules and regulations, relevant forms for licensees and applicants and steps that must be followed to obtain a license for a home care agency in North Carolina.

In order to be eligible to seek licensure and subsequently to be eligible to apply for Medicare certification, an applicant must first obtain a Certificate of Need (CON) from the Maryland Health Care Commission (MHCC). A CON is required to establish a new home health agency or to expand the services of an existing home health agency into a jurisdiction that the agency does not currently serve. To obtain a CON, an application must be filed with the MHCC in accordance with an established schedule. The MHCC will only grant a CON to an applicant if it finds that the project proposed is needed and that it is consistent with the applicable State Health Plan standards and CON review criteria.

Within this regulation, review rules may be found at COMAR and; the methodology for projecting need may be found at Additional background information and data on home health agencies may be found under Supplement 1 and need projections to 2010 may be found under Supplement 2 at: State Health Plan

D. The specific location and each jurisdiction in which sevices will be provided, according to the relevant planning region in the State Health Plan for that facility or service [For home health agency services, the relevant planning region is the county or the independent city of Baltimore].

For more information on the federal requirements governing Medicare-Certified home health agencies (42 CFR 484) and on the Conditions of Participation as a Medicare agency, information is provided at

CVS Health on Monday agreed to an $8 billion acquisition of Signify Health, a health care platform that uses analytics and technology to pair clinicians with patients for home-based visits.

The deal should open doors for the pharmacy chain by allowing it to reach customers within their own homes. Direct access could also help reduce patients' long-term health care costs by making it easier for clinicians to intervene early or help manage chronic conditions. 041b061a72


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