.0 Executive Summary
Comfortable Care Home Health offers a unique combination of premier home health care and community-based social services to Sarasota County. 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 Sarasota County.
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 Marketing 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 Florida 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 Sarasota County.
There are currently around six other home health care agencies that serve Sarasota County, but the other home health care agencies currently operating in our area do not offer the unique blend of home health care and social services which Comfortable Care Home Health 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.
Comfortable Care Home Health is incorporated as a partnership. The primary founder, Paul Finerty is a administrator with over 15 years of experience in operating a Assisted Living Facility. The partnership will include a partner, Frantisek Galanda, who will do billing and managing the agency, while Paul Finerty will get the clients through his facility reputation.
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.
〉 95% 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. Comfortable Care Home Health strives to offer excellent and affordable home health care and community-based social services to individuals and families of Sarasota County.
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 Florida 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.
2.0 Company Summary
Comfortable Care Home Health is a new Home Health and Social Service agency in its start-up stages. Our agency will be located in the heart of Sarasota and will provide the following services to patients and clients from Sarasota County:
〉 Skilled Nursing
〉 Nursing Aide
〉 Social Work
〉 Occupational, Physical, and Speech Therapy
〉 Personal Injury Case Management
2.1 Company Ownership
Comfortable Care Home Health is a limited liability company owned and operated by Paul Finerty and Frantisek Galanda.
2.2 Start-up Summary
Comfortable Care Home Health 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
The table also demonstrates Assets needed for start-up and addresses potential funding sources which are to include cash investments made by each Owner, as well as a five-year 8% loan which will be needed in order to cover start-up costs.
Attorney Fees - Setting Up Limited Liability Company
State of Florida Home Health Agency License
Medisoft Billing Program plus Support
Professional Liability Insurance
*Assuming 25% down of $12,000.00
Workman\'s Comp Insurance Deposit
Premises and Content Insurance Deposit
*Assuming 25% down of $1200.00
Contract Retainer with PT/OT/ST
Office Upgrades (Carpet and Paint)
Deposit plus First
Phone Set Up (Excluding Phones)
Post Office Box
2 Computers (Fully Loaded)
Other Misc. Office Supplies
Total Start-up Expenses
Other Current Assets
Table: Start-up Funding
Start-up Expenses to Fund
Start-up Assets to Fund
Total Funding Required
Non-cash Assets from Start-up
Cash Requirements from Start-up
Additional Cash Raised
Cash Balance on Starting Date
Liabilities and Capital
Accounts Payable (Outstanding Bills)
Other Current Liabilities (interest-free)
Additional Investment Requirement
Total Planned Investment
Loss at Start-up (Start-up Expenses)
Total Capital and Liabilities
Comfortable Care Home Health 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.).
4.0 Market Analysis Summary
The consumer base for Comfortable Care Home Health (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 Florida 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 Sarasota County 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
Comfortable Care Home Health is a combined Home Health Care and Social Service Agency serving a four-county region in Sarasota County. 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 six 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.
5.1 Competitive Edge
We start with a competitive edge: There are currently only six home health care agencies serving Sarasota County; Paul Finerty, has been employed with one of them for three years and has learned many of the day-to-day administrative functions that make a home health care agency successful. Mr. Finerty has built a reputation for outstanding customer service, and it is our belief that her reputation will help to build a strong client base even before our start-up date.
Comfortable Care Home Health will also stand out in integrating community-based social services, such as Personal Injury Case Management, with our more traditional home health care. This broader base will allow us to access additional clientele and payor bases, adding to our financial stability. This integration also leaves room in the long-term for the addition of other social services, such as Family Counseling, Psycho-Educational Services, and Mental Health Case Management.
5.2 Marketing Strategy
Marketing our service-oriented business requires establishing a reputation for expertise and excellence. It starts with our known contacts who are in positions to recommend us and make referrals to us, and continues with long-term efforts to develop recognition among other professionals within the health care and social service fields.
We will develop and maintain a database of our contacts in the field. Mr Finerty is already well-known to physicians, other nurses and hospital facilities in our market area, and will work to maintain those relationships throughout our start-up process. Mr Galanda will make initial contacts in the community as she establishes the business entity and provider status with Medicare, Medicaid, private insurance companies and local attorneys. She will then join Mr Finerty in an effort to introduce Comfortable Care Home Health to area professionals who are potential referral sources. Our communications will be professional, as will our marketing tools such as brochures, business cards, and advertisements.
5.3 Sales Strategy
Sales in our business means quality patient service and utmost satisfaction from referring physicians and health care facilities. It is perpetual business. One doesn\'t sell home health care and personal injury case management; rather one sells excellent care, availability, and effective interpersonal relationships.
In a service industry, growth can mean loss of quality control, which in turn leads to client dissatisfaction. The services we provide should always reflect the mission and oversight of management. We want our clients to know that the quality of service they receive will be excellent, regardless of the individual service provider performing the service.
We will therefore avoid the temptation to broaden the scope of our services too quickly. Rather, we will focus our immediate attentions on making the services we offer of the highest possible quality. Only when those services are well-established and grounded in excellence will we consider expanding our service base.
5.3.1 Sales Forecast
Annual sales reflect a conservative average of 125 new Home Health Care patients for the first year with a modest increase per year thereafter. This figure is based on the number of patients currently being seen by an existing home health care agency in Sarasota County. Research indicates that this agency is a satellite office of a larger regional organization and investment in the satellite office has been minimal. We believe that with a greater investment in marketing, employee relations, and customer service this client base can grow significantly.
The projected annual figures for Personal Injury Case Management sales are relatively low, as this portion of the business will initially be secondary to the Home Health Care Services. However, we project a jumped up annual growth after the first year, as market analysis indicates there is a significant need for these services. As the Home Health Care portion of the business stabilizes management will focus growth efforts on the Personal Injury Case Management program.
6.0 Personnel Plan
The following is an explanation of personnel needs, costs, and benefits as listed in the Personnel table. The projections for the next three years are based on minimal growth in client base and therefore no resulting impact on payroll due to increased hours of service. A cost of living increase is noted for all employees but does not impact the Administrative Director as she is the owner of the business and will realize increase through profit gains.
Administrative Director -- This position will be held by the agency owner. The Administrative Director will also assume all Social Work hours of service during the initial stages of the venture as those hours are projected to be minimal. It is assumed that as need for Social Work hours increases a second Social Worker will be hired.
Clinical Director -- This position will be held by Kellene Walker, who has prior experience as Clinical Director for a home health care agency in Sarasota County. Ms. Walker\'s compensation will be in the form of a salary, based for the first year on $800/week.
Administrative Assistant -- This position is based on 30 hours per week reimbursed, at $12.00 per hour.
Skilled Nurse -- This position will be paid $28.50 per hour for direct service hours.
Nurse\'s Aide -- This position will be paid $10.00 per hour for direct service hours.
Social Worker -- This position will be paid $18.50 per hour for direct service hours.
Physical Therapist/Occupational Therapist/Speech Therapist -- These positions will be contracted at a rate of $30.00 per hour.
7.0 Financial Plan
We want to finance growth mainly through cash flow. We recognize that this means we will have to grow more slowly than we might like. The most important factor for our financial plan is collection of receivables. Our home health care services will be reimbursed primarily by Medicare, Medicaid, and other private insurances. History indicates that these payers are sometimes slow to reimburse and receivables can get hung up in the automated payment system if not tracked closely. As we broaden our scope of services to include a larger payor base, these lags in collection of receivables will have less impact on cash flow.
7.1 Important Assumptions
The General Assumptions table, below, shows our important (and conservative) annual assumptions concerning interest rates, tax rates, and personnel burden. In addition:
1. We assume a strong economy, without major recession.
2. We assume, of course, that there are no significant unforeseen changes in the federal policy that dictates Medicare and Medicaid reimbursement of Home Health Care Services.
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