Whenever you decide to open a business, you have many considerations, but you have even more when that business involves health care. Here are some concerns you should be aware of when opening a hospice business in Texas.
More than licensing and Medicare accreditation
Although hospice law requires you to obtain licensing and Medicare accreditation, you should also be aware of the costs of opening a hospice business. These can be considerable, so you need to do your homework before establishing a business or working as a hospice consultant. Among the startup costs are:
- Computer hardware and software
- Rental space for your office or agency
- Inventory of required medical and office supplies
- Marketing materials and advertising
Make a budget for your ongoing costs too. Payroll will make up the bulk of your expenses, along with standard operational expenses. You must also consider other ongoing costs like annual fees and licensing plus the cost of travel for employees who will need continuing education.
Hospice organizations not only deliver services to terminally ill patients, but they also give support to patient families in various forms through counseling, spiritual care and support groups. Profitability often depends on how you set up your business entity.
Covering all your bases
While all potential business owners must fully evaluate all aspects of their chosen industry to work out a viable business plan, health care providers have additional legal considerations to consider. Among the most important considerations are compliance issues and other federal requirements. Even contracts with providers have a different level of scrutiny than those for other types of businesses.
When setting up your hospice business, pay close attention to how all of your documents are drafted to ensure that you minimize your risk. The Department of Justice or the Department of Health and Human Services, plus Texas agencies, have increasingly scrutinized contracts and other health care provider documents in audits. Taking time at the outset can save money in legal fees down the road.