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AHCA Home Healthcare Agency Business Plan

AHCA Home Healthcare Agency Business Plan

AHCA Home Healthcare Agency Business Plan Required for Accreditation from the Florida Agency for Health Care Administration and Proof of Financial Ability.

Whether you are planning to start a new Home Healthcare Agency, or in the process of a change of ownership you will need to have an AHCA Home Healthcare Agency Business Plan for approval. This new requirement took effect this year. An AHCA Home Healthcare Agency Business Plan requires very specific content that is tied into your Proof of Financial Ability. The Business Plan also lends your Agency a sense of credibility and a great blueprint on how you plan to manage and market the company which increases your chances of success.

Although writing a business plan can be a lengthy, intimidating project, it is not necessarily difficult.

Here is an overview of how to write an AHCA Home Healthcare Agency Business Plan

Your AHCA Home Healthcare Agency Business Plan needs to demonstrate that you have thoroughly considered all aspects of running your business. To that end, the Home Healthcare Agency business is broken into major sections, covering everything from your Home Healthcare Agency mission statement to a detailed financial analysis.

Executive Summary:

The first and most important section of your HHA business plan is the executive summary. This section is so important that it should literally be the first thing the reader sees even before the table of contents! However, it should also be written last, as you’ll have a better understanding of the overall message of your business plan after you’ve researched and written the other sections.

The rest of your executive summary should fill in the important details that the mission statement glosses over. For instance, your executive summary should include a short history of the business, including founder profiles and start date; a current snapshot, listing locations, numbers of employees, and products or services offered; and a summary of future plans and goals.

Objectives:

The objectives should provide Home Care Services to patients. It should include revenue sources such as Medicare and Managed Care and Private Insurance coverage. It should include demographic data about your target market with specifics on age and range of services to be offered.

Mission Statement:

One of the most important parts of the executive summary is the mission statement. The mission statement is only three or four sentences long, but it should pack the most punch out of everything else in your business plan.

Services to be Provided:

This is probably the easiest section. A bullet-style portfolio as the example below illustrates is sufficient.

  • Skilled Nursing at RN and LPN level
  • Home Health Aide and CAN
  • Physical Therapy
  • Occupational Therapy
  • Social Worker Services

Market Analysis:

The next section of your business plan focuses on market analysis. In order to show that your business has a reasonable chance for success, you will need U.S. Census Bureau data on your state’s population and what percentage of the population is over 65 years of age. Furthermore, you’ll need statistical projections on what percentage of the population of the State and your County requires or are eligible for your Home Healthcare services

Your market analysis should describe the industry, including the size, growth rate, and trends that could affect the industry. This section should also describe your target market that is, the type or group of customers that your company intends to serve. The description of your target market should include detail such as:

Distinguishing characteristics

  • The needs your company or product line will meet
  • What media and/or marketing methods you’ll use to reach them
  • What percentage of your target market you expect to be able to wrest away from your competitors

Level of Competition:

Your Business Plan must include market analysis and results of any market tests you have done, and an analysis of the strengths and weaknesses of your competitors.

 STRATEGY FOR MARKET ENTRY:

Typical strategies utilized are direct visits, brochures explaining the services the agency provides, and by mail. Direct visits normally provide an opportunity for the agency to organize presentations to each individual company, hospital, and physician offices.

Milestones and Timeline:

The AHCA Home Healthcare Agency Business Plan should describe the major milestones and timelines for achieving them. The following is an example of the major milestones:

  • SET UP CORPORATION, LOCAL LICENSES, AND OFFICE SPACE DEVELOP STARTUP PLAN
  • CONTACT CONSULTING AGENCY AND ACCREDITATION AGENCY START COMPLIANCE WITH REGULATION
  • APPLY WITH JOINT COMMISSION ACCREDITATION AGENCY AND SEND APPLICATION TO ANCA
  • SUBMIT THE INITIAL APPLICATION FOR HOME HEALTH AGENCY TO AGENCY FOR HEALTH CARE ADMINISTRATION
  • BE READY FOR JOINT COMMISSION ACCREDITATION AGENCY SURVEY
  • PASS SURVEY AND ACCREDITATION PROCESS

PERSONNEL QUALIFICATION:

Once you have described the nature and purpose of your company, you will need to explain your staff setup. This section at a minimum should include a bio on:

  • Administrator
  • Director of Nursing
  • Alternate Administrator
  • Alternate Director of Nursing
  • Office personnel
  • Other

ADMISSION POLICY:

 Each patient will require and referral and initial verbal order for home health services from the referring physician. If the patient’s payer source is Medicare the patient will be required to be homebound for home care services to be reasonable and necessary.

Proof of Financial Ability:

State Statutes require applicants to show anticipated provider revenue and expenditures, the basis for financing anticipated cash-flow requirements of the provider, and an applicant’s access to contingency financing.  All schedules must be prepared in accordance with generally accepted accounting principles (GAAP).  A Certified Public Accountant must compile, perform a financial audit, or apply agreed-upon procedures to prospective financial statements, including summaries of significant assumptions and accounting policies.  An applicant will have demonstrated financial ability to operate by completing a proof of financial ability to operate schedules 1-7 in conformity with the below instructions and GAAP, all relevant rules and statutes, and projections that show assets, credit, and projected revenues meet or exceed projected liabilities and expenses and Independent evidence of sufficient funds for start-up, working capital & contingencies.

AHCA Home Healthcare Agency Business Plan

AHCA Home Healthcare Agency Business Plan Required for Accreditation from Florida Agency for Health Care Administration and Proof of Financial Ability.
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