How Much It Cost To Start A Home Health Care Business

Home health care services are also referred to as home health aide services, aid, and support for ill, disabled, or older adults. If you’re interested in starting a home health care business in your area, then read on for information about the initial costs and expenses involved with getting started.

To determine how much it costs to start a home health care business, you need to first decide if you want a franchise or self-owned business, familiarize yourself with startup costs and expenses, what you’ll need, the department of health and human services, Medicare eligibility and accreditation, and advertising methods.

Franchise or Self-Owned?

How Much It Cost To Start A Home Health Care Business

If you have the time, money, and desire to own your own business but don’t have a lot of experience running one (or any), it might be best to start with a franchise. Franchises come in all shapes and sizes, but they all follow a proven model tested over time. You can learn from this business model while following someone else’s example.

If you want to be part of an established network of like-minded people who want to be successful at home health care or part of an organization that holds regular training sessions for its members, then joining a franchise may be right for you.

If you’ve decided to start from scratch and skip the franchise route, you’ll probably be looking at a lot more work. You’ll need to find clients and keep them happy, but you can do this by offering great customer service and a good reputation. You’ll have to build up your reputation from nothing.

You can create a business model that works for you. It may take longer to get established, but it will also give you more freedom and control over what happens in your business. You’ll have to do all the research and planning yourself, but if you can find a way to make it work, then you’ll be able to reap the benefits of being completely self-employed.

Startup Costs and Expenses

Startup costs are your expenses to get your business off the ground. For instance, if you decide to open a home health care agency and partner with an established franchise, there may be some startup costs associated with your partnership. These could include hiring consultants for legal or accounting advice or paying for classes on starting a small business (which can be done online). 

On the other hand, if you decide to go alone as a self-employed entrepreneur, there will be no fees associated with getting started. The only fee associated with being self-employed is paying taxes on your earnings—but that’s a standard cost for anyone who works for themselves!

Startup costs for a private care agency range from $40,000 to $80,000. A licensed non-Medicare agency ranges from $60,000 to $100,000. A Medicare certified agency ranges from $150,000 to $350,000. Costs include personnel, utilities, insurance, transportation, supplies and disposables, marketing, contingencies, and royalties (if you go the franchise route).

Keep in mind that you will have to keep everything in your business updated, so there will be recurring costs.

How To Write A Cosmetic Company Business Proposal

What You’ll Need

The first thing you’ll need is a business license. Depending on where you live, it may cost $100 or more. Next, you’ll want to get health insurance. As a home healthcare worker, it’s important that your clients feel safe and comfortable in your care—and that means having insurance coverage through an established company like UnitedHealthcare or Blue Cross Blue Shield. 

Some workers prefer working for themselves without the hassle of dealing with an agency; others prefer partnering with one because it can save them money in the long run. Remember that health insurance isn’t enough; if someone comes down with something serious while under your care, there could be major financial consequences if they sue you for malpractice. Make sure you have adequate coverage before accepting any new patients!

The other expenses will vary depending on how large your business grows over time: You’ll need equipment like scales, glucose monitors, or oxygen tanks if necessary; some basic furniture (chairs/tables) for conducting interviews; perhaps even office space, so clients don’t feel uncomfortable at home when talking about their medical history.

As your business grows, you’ll also need to hire staff. You can start with just one person: an assistant to help schedule appointments, answer phones and emails, etc. Although this will cost you some money upfront (for their salary), the long-term benefits are well worth it.

Department of Health and Human Services

If you’ve got the desire to start a business that provides home health care services, be sure you do your research. The Department of Health and Human Services is the authority on all things related to being a home health care provider. Each state may have different requirements. 

Here are some examples of requirements:

  • You must be 18 years old or older and have no felony convictions.
  • You must pass a criminal background check and be fingerprinted.
  • You will need to provide evidence of current or previous employment experience in an area related to healthcare services, such as a nursing aide or medical assistant; the proof may include employment records or diplomas from accredited colleges and universities (if applicable).

As an example here are more specific requirements in Texas according to

  • Complete the pre-survey, computer-based training.
  • Correctly complete the license application.
  • Upload all required documents.
  • Pay the required license fee(s).
  • Registered with and in good standing with the State Comptroller of Public Accounts.
  • Be registered with and be in good standing with the Secretary of State of Texas.
  • Approval by HHS/HCSSA Licensure and Certification Unit.

How Beauty Businesses Get Funding

Medicare Eligibility and Accreditation

How Much It Cost To Start A Home Health Care Business

As a home health care business owner, you need to know about Medicare eligibility and accreditation. It would be best if you were a Medicare-certified home health agency to bill Medicare for services. Being a Medicare-certified home health agency means meeting certain requirements and standards the Centers for Medicare & Medicaid Services (CMS) set. You can check if you’re meeting the requirements on their website.

Accreditation is obtaining approval from an outside agency that recognizes your business as qualified to provide Medicare-covered services. Accreditation will tell patients they can trust your company; it doesn’t prove that you’re insured or licensed—that’s something else entirely! This is different from licensing and insurance, which you’ll also need.

Accreditation is an important step in starting a home health care business because it shows potential clients that the services offered are safe and effective. It also enables clients who qualify for coverage under Medicare (or Medicaid) to receive those benefits without being penalized financially. Penalties can include having their medical bills sent directly back into their pockets through higher premiums every month or year because they used too many services during one twelve-month period after getting injured or sick unexpectedly.


Advertising is a key part of your business, but it’s not free or cheap. You can expect to spend between $100-$200 per month on advertising in the beginning stages of your business. In the long run, however, advertising can lead to more referrals and higher revenue for your home health care business.

Costs will depend on how much time you spend designing ads or getting them done by someone else. If you have Photoshop skills or know someone who does, this might not cost as much. But if you lack those skills, that are one more thing you’ll need to outsource.

Advertising on sites like Facebook will be easy once you get the hang of it. You can always hire a social media manager if work is too much. I recommend finding a good online class to teach you how to run the best ads for your target audience.

The costs of starting a home health care business are higher than average. Starting a franchise is slightly more expensive, but both require a large initial investment. Of course, if you have the capital to invest in your own company or have saved up enough money over time, it may be possible for you to start without needing any loans or funding at all!

How To Start An Event Planning Business With No Money

Frequently Asked Questions

What are the most important things to consider when starting a home health care business?

How Much Insurance Do You Need For Your Accounting and Payroll Business?

When starting a home health care business, the most important things to consider are its startup and recurring costs, staff, equipment, licenses, and anything else the government requires. You want to ensure you follow all guidelines before starting your business.

What can I do to reduce the costs of starting a home health care business?

To reduce the costs of a home health care business, you can offer your services part-time, which will help you avoid paying for office space, insurance, and other overhead costs. You can also work with other businesses that can provide equipment or supplies.

What should I consider when choosing between buying a franchise or starting my own business?

It would be best to consider how you will fund your franchise or your own business and the extra help to operate a franchise. With a franchise, banks or investors may take your business more seriously because the franchise already has a reputation.

To learn more on how to plan your own home health care business click here!

Please note that the contents of this blog are for informational and entertainment purposes only and should not be construed as legal advice. Any action taken based on the information provided in this blog is solely at your own risk. Additionally, all images used in this blog are generated under the CC0 license of Creative Commons, which means they are free to use for any purpose without attribution.