How to Start a New Hospice Business
- 1). Educate yourself in the functions of hospice services, how they are provided and how they are paid for. Many people cannot afford to pay for hospice services and Medicare has strict guidelines for hospice eligibility: A client must be eligible for Medicare Part A; her doctor and hospice program director must certify that she has, in all likelihood, less than six months left to live; she must sign a statement choosing hospice care instead of regular Medicare-covered treatments; and she must find a hospice that is Medicare-approved.
- 2). Research the area in which you plan to set up your hospice. You may find that there are already hospice programs serving the area. To be financially viable, you must find a location that is currently underserved and where there are sufficient potential clients.
- 3). Decide what type of business structure will work best for you. Many hospices are run as nonprofit entities. Your regional office of the Small Business Administration can provide you with a broad range of business development advice and information to assist you with every aspect of the start-up process, including legal and tax requirements.
- 4). Identify all the regulations with which you will need to comply to offer hospice services. In addition to state licensure, you will need to comply with Department of Health and Human Services Centers for Medicare and Medicaid Services Hospice Conditions of Participation (Title 42 of the Code of Federal Regulations: Part 418), if you are to seek reimbursements from Medicare.
- 5). Research all the types of insurance that your hospice will need. In addition to public liability and medical malpractice coverage, you will also need to provide employer's liability insurance and workers' compensation for your employees.
- 6). Determine which model of community palliative care service your hospice will use. According to Derek Doyle's 2009 publication, "Getting Started: Guidelines and Suggestions for those Starting a Hospice/Palliative Care Service," there are three models in common use, and many modifications of each: An advisory hospice service is invited by a doctor or community nurse to participate in a client's care by advising on palliative care options specific to a client's needs; a practical palliative nursing service provides hands-on palliative care nurses in situations where there are no other nurses working with the client in their home; a comprehensive community palliative care service provides a team of palliative medicine physicians and palliative care nurses who provide all care for the client in their home, from prescribing medications to therapies and personal care.
- 7). Find a business premises from which you can operate your hospice. It will need to be conveniently located in a safe area with parking availability. The office space must be welcoming and professional, in order to give a good first impression to the families of prospective clients. It will also need to have at least one private room, where confidential client discussions can take place.
- 8). Secure adequate funding to ensure that you can hire professionals who are experienced in palliative care. This is a very specialized area of medicine and requires dedicated professionals who are empathetic to the situations of the terminally ill. You will also require administrative staff and case managers who are competent in scheduling workloads and ensuring that clients receive adequate coverage.
- 9). Market your services by networking with local professionals such as doctors' offices, hospitals, rehabilitation centers, pharmacists, medical supply stores and faith-based and nonprofit organizations. Advertise in local publications such as neighborhood newsletters. Participate in community activities, where you can build a reputation as being an integral supporter of the local community.
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