Home Health Care Services Business Plan
Wheatland Health Services offers a unique combination of premier home health care and community-based social services to Southeastern Kansas. Market research indicates that there is a significant need for quality home health care and social services within this region and we believe that by employing competent and well-educated staff and providing them with organized and responsive management, we can become the home health care/social service agency of choice in Southeastern Kansas.
Wheatland Health Services will be created as a Kansas Limited Liability Company based in Wilson County, owned by its principal investors and principal operators. The initial office will be established in quality office space on Main Street in Neodesha, Kansas, which is the heart of Southeastern Kansas. Neodesha is also home to a hospital facility and a renowned Wound Center, which will serve as referral bases for our agency.
Consumers of our services will be those individuals and families in need of home health care and/or social services. These patients are usually referred by other health care professionals such as physicians, attorneys, insurance companies and health care facilities. Our agency has already developed an excellent reputation with many of these professionals, through the work of our Clinical Director, who has been providing home health care services through another agency for the past three years, and through the presentations we have made to the community via marketing tools and personal interactions.
Our agency must be licensed by the State of Kansas and our services reimbursed by Medicare, Medicaid and other private insurance carriers. The process for licensure and insurance certification has already been initiated and we are well on our way to meeting the regulations and guidelines for providing home health care and social services to patients in Southeastern Kansas.
There are currently only three other home health care agencies that serve Southeastern Kansas. One is a satellite operation based out of a larger regional hospital in Bartlesville, Oklahoma. Kellene Walker currently manages this agency’s operation there, and due to the lack of interest the parent organization has demonstrated in this satellite agency, we believe that upon her transfer to Wheatland Health Services that agency will close its Wilson County operation. The other home health care agencies currently operating in our area do not offer services to all four of our target Counties; they also do not offer the unique blend of home health care and social services which Wheatland Health Services will be providing.
All pricing will be set according to Medicare, Medicaid and other insurance regulation so pricing is not a major factor of consideration. Sales estimates project healthy revenues in the first year and modest increases through year three.
WHS is incorporated as a partnership. The primary founder, Elizabeth Patzer, MSW/PA, is a social worker and public administrator with prior experience in operating a social service agency. The partnership will include a second, non-managing partner, M. Brad Patzer, who will help with initial start-up funding and retain a minority equity stake. Wheatland Health Services will be managed by Beth Patzer and Kellene Walker, our Clinical Director.
The company plans on taking on debt in the form of a five-year loan, and has no plans for additional debt as growth will be financed mainly through cash flow. Our plan includes assumptions of 100% sales on credit, and sufficient cash on-hand at start-up to prevent any problems with cash flow.
- 125 Home Health Care patients served by the end of first year.
- 12 Personal Injury Case Management Clients served by the end of first year.
- Respectable gross sales by the end of first year.
- 80% of Customer Satisfaction Surveys returned indicating satisfaction with services.
1.2 Keys to Success
- Professional quality of services offered
- Reliability — being available through on-call, and adequate staffing
- Effective collaboration with other community professionals (physicians, hospitals, and other organizations)
Our values are simple. Wheatland Health Services strives to offer excellent and affordable home health care and community-based social services to individuals and families of Southeastern Kansas.
It is our goal to employ competent, caring, and well-trained individuals who are responsive to the needs of our patients, their families, and the communities we serve. Each staff member will meet the State of Kansas educational and training requirements for the services they provide. We encourage and support continued education of each service provider. In turn, our agency will provide staff with competitive compensation, an inviting work environment, and knowledgeable, trustworthy management and direction.
Wheatland Health Services is a new Home Health and Social Service agency in its start-up stages. Our agency will be located in the heart of Southeastern Kansas and will provide the following services to patients and clients from Neodesha, Wilson, Montgomery and Labette Counties – all within a ninety mile radius of our offices:
- Skilled Nursing
- Nursing Aide
- Social Work
- Occupational, Physical, and Speech Therapy
- Personal Injury Case Management
2.1 Company Ownership
Wheatland Health Services is a limited liability company owned and operated by Elizabeth G. Patzer, MSW/MPA and Marlon B. Patzer, M.S./M.Ed.
2.2 Start-up Summary
Wheatland Health Services is in its start-up stage, and consequently there are start-up costs and funding issues to address. The Start-Up Table, below, indicates in detail those costs which include the following:
- BUSINESS DEVELOPMENT
- RENTAL EXPENSE
- OFFICE EQUIPMENT
- OFFICE SUPPLIES
- NURSING SUPPLIES
Wheatland Health Services offers premier home health care that includes skilled nursing, nursing aide, social work, occupational therapy, speech therapy, and physical therapy. We also provide personal injury case management services which include assessment, planning, resource linkage, reporting and professional services (court testimony, etc.).
Market Analysis Summary
The consumer base for Wheatland Health Services (Home Health Care Services) will be patients referred by physicians, health care facilities and other health care professionals. The majority of these patients will be covered by Medicare with a smaller portion being insured by Kansas Medicaid or other private insurance carriers.
The consumer base for the Personal Injury Case Management component of our business will be those individuals who have been injured either on the job or in another type of accident. These referrals will come from attorneys seeking case management services for their clients or from insurance companies who are requesting assistance in mitigating the injuries and loss the client suffers.
4.1 Market Segmentation
The population base in Southeastern Kansas is aging, and more individuals are opting to stay in their own homes longer and return home following hospitalization, rather than proceeding to a nursing home. Our primary market segment includes those patients — typically in an older age bracket — who require health care services by home health nursing staff. These patients may also require other home health services, such as social work, in order to access needed community resources.
Our secondary market will be those individuals who have suffered a personal injury and require case management services to assist them in addressing medical, financial, and employment issues.
4.2 Target Market Segment Strategy
Because our agency specializes in home health care and community-based social services, we will focus on those market segments where we know our services are most needed. Focusing on those market segments that require only home-based services will greatly decrease overhead, since additional office space will not be required.
4.3 Service Business Analysis
Wheatland Health Services is a combined Home Health Care and Social Service Agency serving a four-county region in Southeastern Kansas. Home health care and social services are typically utilized by individuals and families, with service referrals coming most often from other professionals (i.e. physicians, hospitals, attorneys, etc.).
There are currently three other Home Health Agencies serving the same area, but we are unique in that we plan to offer community-based social services as well as home health care.
4.3.1 Competition and Buying Patterns
The key factor considered by both consumers and referring professionals when purchasing home health care is trust in the professional reputation, reliability and quality of services provided by the home health Agency.
Pricing of home health services does not usually influence consumers’ choices, as most home health services are reimbursed by Medicare, Medicaid, and private insurance companies, and reimbursement rates are set by those entities. Pricing of personal injury case management services is a more important factor, as these services are paid for as negotiated on a case-by-case basis at an hourly rate. When pricing personal injury case management services, we will explain to the client that we estimate the total number of hours needed to complete services liberally, rather than bidding low and then exceeding the anticipated total bid price for services.
Consumers of both home health care services and personal injury case management services rarely compare service providers directly. Usually they follow word-of-mouth recommendations, especially when those recommendations come from their physicians.
Perhaps the most important element for assessing competition in the Home Health and Social Service fields is how to persuade other professionals to repeatedly refer their clients to our agency for services. As our agency demonstrates outstanding patient care, current and pertinent qualification of service providers, and professional organization and business management, we believe that we will be able to capture the majority of the home health care and personal injury case management market in our designated region.