first stepS to becoming a home care agencY

The first decision to be made when considering starting a home care agency is what kind of provider do you want to be, or what kind of services do you want to provide?

• If you want to provide skilled services in the state of Minnesota (services provided by a licensed or certified health care professional such as a nurse or therapist) you must have a Comprehensive License through the MN Department of Health (MDH).
• If you want to provide assistance with activities of daily living (services done by a trained individual, or someone associated with your clients personally, for example) you can register as a Personal Care Provider Organization, with the state Department of Human Services (DHS), or as a Basic Licensed Agency through MDH (list of allowed services with this type of license) .
  
• Your corporate structure can be defined and completed at the Secretary of State’s Office.
  

Many people benefit from working with a consultant. They can assist you with the process, understanding licensure and certification, how to apply, as well as answer questions you have.  A few options that are Business Partners with MHCA are:

• Home Care Consultants, INC.
• Mefford, Knutson, & Associates, INC.
• Senior Care Solutions

You also need to consider how you will be paid.  Do you want to accept Medicare and/or Medicaid clients? Contract with a Managed Care Organization?  Or work with individuals or families who are paying privately?

• If you'd like to work with Medicare, you need to complete their requirements to be Medicare Certified.    
• In Minnesota, services for clients who are on Medicaid is handled through the state's Department of Human Services.
• Managed Care Organizations have their own billing and claim departments.
• Private Duty/Pay requires certification or licensure as defined above, but agencies bill their services directly to the consumer.

Then, you cannot ignore the business side of an agency.  You will need a business plan, including a marketing plan (where will you find your clients? Will you arrange for referrals?) and a budget with cash flow analysis. 

• You should have a Business Plan in place before you start your agency. The Business partners referenced above can assist you with this, or you can find information and advisors on your own.
• The Minnesota office of the Small Business Association may provide guidance.

Once you are well on your way to establishing your agency, it's time to think about your team. How do you plan to recruit and retain staff? What will your pay and benefits structure be? 

• Staffing is the most important part of your business. It will be important to recruit, train, and retain good quality, caring, and consistent staff.
• There are many recruitment tools available including networking, online job centers, recruiters, social networks, etc.
• MHCA Business Partner Rodè & Coffin, LLC and Winthrop and Weinstine can offer guidance on human resources questions and issues.  They provide expertise on policies and procedures, wage and benefit issues, and more.

And don't forget to learn about what type(s) of insurance you will need!

• You will need Workers’ Comp insurance, Liability insurance, Surety bond, and Fidelity bond, at a minimum.
• Some organizations provide health and dental insurance for its staff.
• MHCA Business Partner SMF Insurance Company may be a good resource for guidance on all of these topics.   

If you have questions, please contact us by phone 651-635-0607 or info@mnhomecare.org, and we will assist with finding more information.