Home Care Agency Profit
When your home care agency takes on a new client, chances are this will be a private pay client, although, your home care agency may find opportunities with Medicaid waiver programs or local VA programs.
When your home care agency does take on a new client, you will conduct a client assessment assessing the needs of your client and determining the plan of care.
Once this is determined, your home care agency will set up a payment plan with the client. Depending on the services you are providing, will depend upon the hourly rate of care. Most home care agencies charge between $16 and $19 for companion care services and $18 and $22 for personal care services that require touching, like bathing. The cost of your companion care and personal care services will vary depending on where you are located.
If your home care agency is taking on a new client at 20 hours per week and your client is paying $16 per hour while you pay your employee $8, your home care agency is profiting $8 per hour. If you are paying your employee $8 per hour and your home care agency is charging the client $22 per hour, your home care agency will profit $14 per hour. Although it is important to be competitive, the minimum profit for your home care agency for this 1 client would be $640 per month. If you just have 10 clients you are seeing for 20 hours per week, your home care agency would profit $6,400 at minimum per month. This number will be much higher as you market your business and grow your census. 20 of these clients would profit $12,800 per month. The possibilities are endless.
It is important to think of your home care agency as a staffing agency. For each hour you bill out, you are earning X amount of dollars. You want to bill out as many hours as possible. Our home care business consultants will help you start, understand and grow your home care business successfully. Do you want to start a home care business making money and helping your community at the same time? Our home care business consultants will get you licensed, help build your home care agency’s branding and marketing strategy and train you for success, providing everything you need to start your home care business.