How to Start a Private Home Care Business

Senior citizens over the age of 65 are increasing in population yearly due to medical advancements that have significantly increased life expectancy (United States Census Bureau, 2020). With that, a growing need for home health care facilities are present.

What is a Private Home Care Business?

A private home care business, which is similar to a Non-Medical home health care business, caters to senior citizens, people with disabilities or people who need help recovering from illness or injury at the comfort of their own home either by the hands of a private caregiver or through an agency.

Since private home care businesses tend to individual needs, the service extended can be customized to each client, matching caregivers with a client’s preferences, without further approval from primary care physicians or other medical professionals.

Private home caregivers can extend as much support as the client needs without any eligibility requirements either for the long or short term. Because of the precise attention to a client’s individual needs, higher customer satisfaction is highly probable which in turn promotes greater earning opportunities for the private home care business. (Nurse Next Door Home Care Services, 2020)

Steps to Start a Private Home Care Business

Creating a Business Plan

A business plan is the cornerstone of your business, specifying how you’ll structure, operate, and scale the business you’re planning on running.

There are two common types of business plans: the traditional type that is extensive and elaborates what exactly your plans are, taking more time to write and put together while the other type is the lean startup plan which is quicker to write and summarizes key points from a high-level view.

Investors generally request for the traditional type of business plan. (U.S. Small Business Administration)

How each business writes their business plan varies on a case-to-case basis.

Register with The State

Differing states will have different fees and document requirements for different business structures. Be up to date with your state’s requirements and consult with your state’s regulating body to know what you have to prepare.

State and local licensing will need to be complied with.  Additionally, professional certifications, licenses and permits for the certified caregivers and nurses being employed must be observed. (Petersen, 2019)

Business incorporation, availing of tax identification and registering the National Provider Identification (NPI) number will also need to be done.

Obtain Licensing (Medicare & Medicaid)

The process of accreditation can take a while with the possibility of accreditation taking up to a year to complete. When the proper certifications have been obtained, payments can be collected from Medicare and Medicaid plans for health care services provided.

Application and surveying can be done on

Certain states require jurisprudence exams as part of the licensing process which is detailed on

Hire & Train Staff

 Recruiting qualified medical professionals or non-skilled professionals giving basic care is crucial in providing quality healthcare services. Launching a website and fostering referral relationships with long term care agencies like Paraprofessional Healthcare Institute and local clinics of doctors within the area can provide a pool of competent and passionate caregivers ready to extend their services.

Training staff can be done through multiple learning styles from on-the-job training that provides supervision in the field, peer mentoring, and in service/peer support sessions (Paraprofessional Healthcare Institute, 2003) to developing opportunities that allow staff to learn and set high standards of work and accountability while rewarding dedication (Bowers, 2018)

Generate Clients for Your Business

Effective marketing strategies will help put the services you offer in front of the market that needs it. Joining local groups and organizations like the National Association for Home Care & Hospice would be beneficial in establishing the presence of your home care agency.

On the other hand,  building an online presence for your business can be done through registering on Google My Business to give an overview of what you’re clients would like to know from business operating days and times to its location , building a website as studies conducted show that consumers prefer to do research on a business’ website before they considering availing of its services, and establishing a social media presence (Caitlin, 2021)

Apply for Financial Support or Loans if Needed

Finding financial support or loans backed by government agencies or other funding options designed to finance your business if needed can be found listed on both and

Billing Medicare, Medicaid or third-party insurers can lead to slow payment periods. Bridging gaps between payment periods can be done through accounts receivable factoring.

Invoice factoring is the means to pay employees and continue healthcare business operations while waiting on full payment collection through advanced payments that support the ongoing operations of the business.


Sources & Citations

  • Bowers, L. A. (2018, June 4). 10 Tips for Recruiting and Retaining Employees. Retrieved from McKnight's Senior Living:
  • Caitlin, E. (2021, March 1). Business in a Post Pandemic World: How to Build a Solid Online Presence for Your Business. Retrieved from LinkedIn:
  • Nurse Next Door Home Care Services. (2020, May 22). Entrepreneurship. Retrieved from,unique%20needs%20of%20each%20client.
  • Paraprofessional Healthcare Institute. (2003, August). Training Quality Homecare Workers. Retrieved from PHI National:
  • Petersen, L. (2019, March 24). Steps to Start a Home Health Care Agency. Retrieved from Chron:
  • U.S. Small Business Administration. (n.d.). Business Guide: Plan Your Business. Retrieved from US Small Business Administration:
  • United States Census Bureau. (2020, June 25). Newsroom: Press Releases. Retrieved from