Should You Start or Buy an In Home Health Care Agency?

Are you considering building your own home health care business? It is an important industry that offers major opportunities. Developing your own business is a great way to support yourself, your family, and your community. At the same time, owning a business is a major investment of time and money. One of the first questions you need to ask yourself is if you should buy into an existing business or build one from the group up. Here, our Bay Area home health agency attorney highlights the key things to know about starting or buying a home health care business in California.

Home Health Care is a Complex Industry With High Growth Potential

According to data from AMN Healthcare, the in-home health care industry is expected to grow at a breathtaking pace over the course of the next decade. This rapid expansion is driven by an aging population, increasing prevalence of chronic diseases, and the rising demand for personalized care. More health care agencies will be needed to fill the demand. At the same time, home health care is a complex industry. Major issues—business structure, regulatory compliance, liability concerns, workforce management, etc—can pose significant challenges. Entrepreneurs need the right legal representation. 

Understanding Your Options: Know the Advantages and Disadvantages

If you want to own and operate a home health care agency in the Bay Area, you have three main options. You can buy a business, you can buy-in to a franchise, or you can start your own brand new agency. There are pros and cons to each of these options. The best path forward depends on your situations and your goals. Here is an overview of the advantages and disadvantages: 

• Purchasing an Existing Business: Acquiring an established in-home health care agency offers several benefits, such as an existing client base, trained staff, and a proven business model. Beyond that, you can inherit existing licenses and certifications, saving time and effort spent on obtaining them. However, buying an existing business can be expensive. The start-up cost is higher. Another potential downside is you may inherit any outstanding debts or legal issues.
• Becoming a Franchisee: By joining a reputable franchise, you can benefit from an established brand, marketing support, and a proven business model. As a general rule, the franchisor will provide training, ongoing support, and guidance on regulatory compliance, which can be invaluable for those new to the industry. Most franchises have existing vendor relationships that can save you money on supplies and equipment. However, franchise fees and ongoing royalties can be significant, cutting into your profits. You may also be limited in terms of creativity and decision-making, as the franchisor typically sets operational standards and guidelines.
• Starting Your Own Agency: Starting your own in-home health care agency allows for maximum control and creative freedom in shaping your business according to your vision. You can create a unique brand identity and implement innovative strategies tailored to your target market. As the business owner, you will retain all profits and have the flexibility to adapt and grow your agency without restrictions. That being said, starting an agency from scratch requires significant effort, time, and resources. Navigating the process of obtaining necessary licenses, certifications, and insurance can be complex and time-consuming.

Contact Our California Business Lawyer for Home Health Care Agencies

Lynnette Ariathurai is a top California business lawyer with specialized experience representing entrepreneurs in the home health industry. If you have questions about starting or buying a home health agency, we can help. Call us now or connect with us online for a confidential consultation. With an office in Fremont, we provide legal representation to businesses throughout the Bay Area.