Are you interested in starting a home health care business? Or do you already own one? Whichever the case, you’ll likely want to know how to increase your home health care business income in the new year and plan for recession-resilient success.
We’ve broken down eight ways to increase your business revenue in 2023 to turn your home health care agency into a highly profitable business!
Are Home Health Care Businesses Profitable?
In North America, the home care industry is expanding at a rapid pace, mainly due to the aging population of baby boomers ) who are quickly needing more home health care. Not to mention, there is a significant preference among seniors to age in place rather than live in an assisted living facility or nursing home .
As the years go by, the demographics change at a faster rate. On estimation, 55% of Americans will require moderate-long term care, and 25% will need severe long-term care in the coming years. Unfortunately, most private insurance policies do not cover long-term care or Medicare.
Even in Canada, which has taxpayer-funded universal health care, home care businesses are in growing demand due to the similarly high costs of nursing homes and assisted living facilities.
The opportunity for home health care agencies to succeed has never been more prominent due to this increased demand. Statistics show that this demand will only skyrocket further in the years to come.
An additional benefit to owning or operating a home health care agency is the low startup costs and relatively low expenses compared to other types of businesses.
We recommend that business owners leap now in 2023 to get their own home care businesses set up to get ahead of the booming demand. More people needing home health care means more profit for home health care businesses.
8 Ways Home Health Care Agencies Can Generate More Income
There are multiple revenue streams for any home health care company and many ways to generate more income in 2023. The best way to create more profit in 2023 is to market your home care business to develop a greater clientele.
We’ve listed the top eight ways to diversify revenue streams, bring in more clients, and earn more money next year!
1) Private Pay Clients
Clients and their families often plan ahead to ensure they can pay for in-home care services for themselves or their loved ones as they age. Making private pay a primary revenue source is a key to earning more income next year. Private pay clients are people who pay out of pocket for healthcare services. To increase profit, you want to get these types of clients through the door as fast as possible.
The best way to attract potential clients for your health care business is through referrals. Referrals always take some time to build, but opening up a franchise is the best way to do so! The Nurse Next Door franchise model is an industry leader in home health care for several reasons, which we will explore below.
2) Third-Party Payer
A third-party payer is “any entity that provides insurance, medical service, or health plan by contract or agreement. It includes but is not limited to: (1) State and local governments that provide plans other than Medicaid. (2) Insurance company or carriers.” . Third-party payers can contribute to your source of revenue for in-home care services, ensuring you’re not just receiving private paying clients.
- Medicare Advantage
An alternative to traditional Medicare, Medicare Advantage is a supplementary plan that covers in-home non-skilled care.
- Veteran Affairs
Add your business to the U.S. Department of Veteran Affairs (VA), which offers veterans comprehensive health care benefits, including access to in-home care services.
- Client Insurance
Many insurance plans will cover some or all of the costs of in-home care, making this a great source of revenue for in-home-care services.
3) Outsource Your Staff
While your home care business is growing, there is a huge opportunity to help hospitals, assisted-living facilities, and other care centers with staffing shortages.
Outsourcing staff is the best way to earn extra profit next year while ensuring you don’t work yourself into the ground during the startup phase. When you have a surplus of caregivers and skilled team members, you can leverage your team to staff hospitals and other facilities for additional revenue—especially as the hospital staff shortage spreads across the country.
To help facilitate this, the Nurse Next Door HeartQuarters supports your business 24/7 with a built-in care services center for client bookings and inquiries. That way, you won’t get the managerial headache of scheduling staff or worrying about partnering the right caregivers with your client.
There is no one size fits all approach to home health care referrals. Each home health care business is unique and utilizes its own referral system that works best for them.
Many home care agencies even incentivize customers or other health care workers, like doctors or care centers, to refer others by creating personalized referral programs. Asking for referrals from your current and past clientele and other industry professionals can be one of the most effective ways to get new clients.
As a Nurse Next Door franchise owner, you can also gain additional income by referring family and friends to Nurse Next Door’s franchise development team to open franchises in their communities and, in return, receive benefits for your own business.
To find out more about the friends and family incentive program, contact our Franchise Development Team at 1-855-737-6803 today!
5) Google My Business
Get your home health care agency or company listed on Google My Business as soon as possible.
Listing your business on Google is free of charge. It allows you to be noticed by new customers in your community through Local Search and the Map Pack (a section in Google local search results that showcases the top-ranking local listings for the searched location).
Listing your business on Google My Business will help drive online traffic to your company and allow your customers to review your business. Google Reviews is a trusted source for genuine reviews from real users.
6) Package Pricing
Package pricing is another great way to increase profit in 2023. By grouping services together, you can encourage clients to buy more than one service at a time, increasing your average order value. Packaged pricing, or in other words, “service bundling,” can increase your profit margin over time.
For instance, if an individual is seeking home care, you can bundle home care services, including meal preparation, light housekeeping, and transportation. That way, you can charge more for a bundled service while delivering better value to your client.
At Nurse Next Door, this is already done for you, with care packages available to clients when they call the Care Services Team at HeartQuarters.
7) Strong Branding
Any home health care agency needs great branding to attract more customers. Without a strong brand image, clients are deterred and go elsewhere. An advantage to a home health care franchise is that solid branding is already in existence, making your life easier as a business owner.
As a private home care business, creating a brand from the ground up can take months, if not years, of work to establish, let alone spread the word in the community.
Nurse Next Door has been a well-established brand since 2001. People recognize our bold pink branding, attracting many customers across the continent. We implement forward-thinking ideas that lead the industry.
When buying a Nurse Next Door home care franchise, you gain instant access to a proven business model with systems and processes already developed through years of trial and error.
8) Happier Caregivers = Happier Customers
Have you heard of the tale of the goose who laid golden eggs? The tale is derived from an ancient Greek story about a farmer with a goose that laid golden eggs. The farmer thought that if he killed the goose, he could get all the eggs inside of the goose at once rather than patiently wait for his goose to lay golden eggs every week. When the farmer decided to kill the goose, he lost everything.
Essentially, the moral of the story is that if you kill or mistreat your output producer, i.e., in this case, the goose, you lose your golden eggs.
Caregivers are the heart and soul of this business and the home care industry. We know that our caregivers symbolize the ‘goose’ in this scenario. They provide the valuable service that delivers the golden eggs. We must take care of our caregivers through ongoing caregiver training, incentives, benefits, and fair compensation to gain happy customers. Without happy caregivers and staff, companies will suffer.
At Nurse Next Door, our caregivers and clients mean the world to us. We look for talented caregivers who are genuinely passionate about what they’re doing and go above and beyond for their patients.
How to Start a Home Health Care Agency?
To launch your business, begin with a home health care agency business plan. Research as much as you can before jumping in with both feet.
Franchising is one of the easiest ways to start a home health care agency, and opening a franchise with Nurse Next Door presents you with a unique business opportunity.
It’s never too late to start a home care agency. More than ever, great resources are available to help you get started.
Read the top 10 reasons why you should start a home care business and watch our latest discovery video to learn more about the advantages of franchising with Nurse Next Door.
Ready to be a business owner? Explore our website at Nurse Next Door Franchise to learn more!
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- Discovery Video – 15 min overview of this opportunity
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- The Nurse Next Door opportunity
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