How to Start a Home Nursing Business

23:42 - 27/03/2017

1. Organize your business legal structure. Corporations, limited liability companies and limited liability partnerships can offer you and any investors or partners personal liability protection. All of these business entities are created via your state's secretary of state's office. You may want to consult an attorney or accountant to figure out what makes the most sense for you.

2. Apply for a business license in your city or county of operation. Health care businesses have high liability and need to make sure they have all legalities covered.

3. Register with your state department of health. Most states require all forms of health care business to apply for licenses and registration with them. You will also need to comply with their regulations and oversight measures.

4. Purchase liability and professional liability insurances. Liability insurance will cover your business in general and professional liability insurance covers any malpractice, accidents and unintended harm by clinicians working for you. Consult an insurance broker who specializes in health care to get the right products. You may also consider requiring your nurses and clinicians to carry their own professional liability insurance in addition to what your provide.

5. Apply to Medicare and private insurance companies to become a participating provider. Given that most home nursing clients have some type of insurance to cover their care, receiving insurance reimbursement is vital to your success. The Center for Medicare Services has a lengthy application process, which requires you to comply with numerous rules and regulations. You may have to develop certain accounting, documenting and billing procedures to come into compliance.

6. Establish billing system. You can choose to bill in-house, which will likely require hiring a seasoned medical biller and health information specialist. However, most startup businesses find it easier and cheaper to hire a medical billing service to perform this technical work. Contracting to a medical billing service can also be useful for coming into compliance with Medicare requirements as their billing procedures should be designed around Medicare.

7. Establish a payroll system. Like with billing, you may choose to bring this in-house using payroll software. However, because of the state and federal holding compliance requirements, companies of all sizes often choose an outside payroll service. Some payroll services cater to the small business market. You may also elect to contract your clinicians in a 1099 format instead of making them employees. This can alleviate some of the complexities of payroll. However, because contracting is not an industry standard, not all clinicians will go for this.

8. Hire nurses and any other allied health care workers you want to complement your nursing business. Most nursing care businesses have registered nurses and licensed practical nurses. Many also offer physical therapy, occupational therapy, speech language pathology services and respiratory therapy.

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