The Dollars And Cents/ Sense Of Starting A Homecare Or Hospice Agency: Evaluate Your Best Options To Proceed

February 19, 2022

We frequently get calls about those looking for help starting a home care, home heath, and hospice agency. It’s part of what we do. However, it is important that those looking to jump into the homecare and hospice arena understand the process, the cost, and whether it is a good fiscal move. Here are some things to consider ahead of time to help determine if you are prepped for success.

1.    What’s Your Background? Have you worked in the industry? Have you have been on the business end or the clinical end of an agency. This doesn't mean that you cannot start a successful homecare agency without it, but you will have more education on the industry standards and regulations than those already versed in them.

2.    What Competition Do I Have? This is something you definitely have to consider. If there is market saturation in your area, you may be climbing a really steep hill to get any market share.

3.    Differentiation: After compiling the data from the competitive analysis, do you need to look at providing a niche’ service or product to fill a gap in your community? These are the types of things that can someone in a saturated market obtain market share.

4.    Leadership: If you come from a strong business background, then you need a strong clinician working with your agency. The same holds true for those who are clinicians. If you don’t have strengths in both departments, then get the right people around you to support your start-up.

5.    Finances: Look, starting an agency takes money. Depending on where you are located in the country, here is what it typically takes to get yourself up and running:

         Homecare: $40,000-$80,000

         Non- Medicare Home Health: $60,000-$100,000

         Medicare Certified Home Health/ Hospice: $150,000-$350,000


Those numbers may appear to be more that what you anticipated, but you have to look at the costs to provide services to patients up front before you are allowed to bill for reimbursement. It includes costs of overhead that will also accrue while you await survey. There are licensure fees, software, EMR fees, training costs and more. Then, for those considering Medicare certification, you have the capitalization requirements needed in order to get your 855 approved and move forward. That money has to remain in place to show CMS you have the necessary dollars required to operate. This is not to discourage someone from moving forward, but to make sure someone goes into the process ready to succeed and not begin a process they do not have the funds to complete. .

Kenyon Homecare Consulting Can Help You Start-up Successfully:

At Kenyon Homecare Consulting , we offer a comprehensive list of products an services to help those starting an agency as well as those currently in the industry. Our senior level consulting staff can help you with solutions to your business and start-up needs. Call us today at 206-721-5091 or contact us online to see how we can help you!

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controlling chronic diseases
By Ginny Kenyon April 25, 2026
In the rapidly evolving landscape of healthcare, the burden of care is increasingly shifting from clinical facilities to the home. As the population ages, the prevalence of chronic conditions—such as heart disease, diabetes, and respiratory disorders—has reached unprecedented levels. For home care agencies, the quality of service is no longer just about assistance with daily living; it is more and more defined by the clinical competencies and disease-specific knowledge of your field staff. Chronic disease education for home care staff is not a luxury, is a strategic necessity that directly impacts patient outcomes, caregiver confidence, and the business’s bottom line. 1. Enhancing Clinical Outcomes and Safety Home care staff are the "eyes and ears" of the healthcare system. When aides and clinicians are highly educated on chronic disease processes, they can identify subtle shifts in a patient's condition before they escalate into emergencies. · Early Intervention: An educated caregiver can recognize the early signs of fluid retention in a Congestive Heart Failure (CHF) patient or skin changes in a diabetic patient, allowing for proactive adjustments rather than reactive ER visits. · Medication Adherence: Understanding why a medication is prescribed for a specific chronic condition helps staff reinforce the importance of adherence to the patient, reducing the risk of complications. 2. Reducing Hospital Readmissions Hospital readmission rates are a primary metric for home health success. Chronic diseases are the leading cause of "revolving door" hospitalizations. By providing specialized education, agencies empower their staff to implement Evidence-Based Practices at the bedside. When staff can effectively manage symptoms and educate patients on self-care, the likelihood of a patient staying stable at home increases dramatically. This not only benefits the patient but also strengthens the agency’s reputation with referral sources like hospitals and physician groups. 3. Boosting Staff Confidence and Retention The home care industry faces significant challenges with staff turnover. Often, burnout is fueled by the stress of feeling unprepared for complex patient needs. Knowledge is Empowerment: When staff members receive robust training, they feel more confident in their roles. This professional growth fosters a sense of value and belonging within the organization, leading to higher job satisfaction and lower turnover rates. 4. Improving Documentation Accuracy In an era of increased regulatory scrutiny, clinical documentation must be precise. Education on chronic diseases ensures that staff members use the correct terminology and focus on the most relevant clinical indicators during their assessments. · OASIS Accuracy: For Medicare-certified agencies, a deep understanding of chronic conditions leads to more accurate OASIS scoring, which directly influences reimbursement and quality ratings. · Audit Readiness: Well-educated staff produce notes that clearly reflect the necessity of care, making the agency much more resilient during regulatory surveys or audits. 5. Bridging the Communication Gap Effective chronic disease management requires a multidisciplinary approach. A caregiver who understands the nuances of a disease can communicate more effectively with: · Physicians: Providing clear, clinical updates that help doctors make informed decisions. · Family Members: Offering clear explanations and peace of mind to stressed family caregivers. · The Internal Team: Ensuring a seamless transition of care and consistent messaging across all disciplines. Conclusion Investing in chronic disease education is an investment in the agency’s future. By elevating the knowledge of the frontline workforce, home care providers can transform from basic service agencies into high-value clinical partners. In the end, the goal is simple: providing the highest quality of life for patients in the comfort of their own homes, a goal that can only be met through a highly trained and knowledgeable staff. If you do not know where to get comprehensive education for Chronic diseases, contact Kenyon Homecare Consulting at gkenyon@kenyonhcc.com or call 206-721-5091. We are here to help
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