A healthcare business can be extremely satisfying because there are both emotional and financial rewards to be reaped. Job satisfaction is garnered through helping others, and healthcare businesses are in high demand, meaning there’s a lot of money to be made. 

Unfortunately, it’s not all rainbows and picnics for the eager healthcare business owner. Healthcare businesses present a number of unique challenges for entrepreneurs. Here is some quality advice to help eager entrepreneurs get started with a brand-new business, and hopefully avoid some of the more common pitfalls associated with healthcare.

Build Your Business Model

Healthcare is a concern for every single person the world over, which means it’s a worthy endeavor for the right entrepreneur. Everyone gets sick, and at some point in their lives, every person will require medical attention.

You need to ask yourself the following questions:

  • How do I want to provide healthcare; for example: nursing groups, home health aides, opening my own practice or hospital, providing the tools necessary for professionals to do their jobs, etc.?
  • Should I open an office, or should I consider something mobile? Doctors will need their own practices, but if you’re selling medical supplies, you may only require transportation.
  • Do I need additional education or training?

Once you’ve established exactly what you’ll be doing, and how you’ll be doing it, you’re ready to face some of the challenges a healthcare business can present.

Government Bureaucracy Could Stand in Your Way

The bureaucracies that stand in the way of a start-up can be intimidating and infuriating. A detailed business plan will help you look legitimate in the eyes of these entities, as well as it will help you get licensed (if a license is necessary for your business).

You must be in full compliance with your state’s health department in order to pass inspections, garner licenses, and practice medicine. Depending on your business, the government may require multiple licenses in order to get you operational. Moreover, some businesses may require licenses in certain areas, but not in others.

For example, imagine you manage a home health care team. Your nurses travel from city to city providing care to the sick and elderly. Each area has different requirements and jurisdictions, which may result in the need for multiple licenses. Unfortunately, government involvement is increasing with each passing year. Start working with your local health department now, to help fulfill all the needed requirements.

Set Up a Liability Limiting Structure

Given the risks, to both patient and caregiver, the chances of an eventual lawsuit are greater in the healthcare industry. Make sure to get yourself an experienced healthcare lawyer. He’ll help set up your liability limiting structure, which will help protect your home and other outside investments in the event of a lawsuit.

Insurance Needs

Outside of standard insurance needs, such as workman’s compensation and umbrella policies, you’re going to need medical malpractice coverage. Home healthcare and visiting nurse businesses don’t have an office, but it’s still required the business carry malpractice insurance.

Staffing Your Healthcare Business

Hiring healthcare employees is very tricky, especially for home healthcare and visiting nurse businesses. These employees will be working independently, without any company oversight, and they’re the face of your business to your clients. The best way to avoid hiring someone potentially dangerous to your reputation is to select employees from the top healthcare staffing agencies. They will screen potential employees by digging into their backgrounds and determining whether they are skilled and have proper bedside manner.

Without a staffing agency, you’ll be left spending countless hours reviewing resumes, checking references, and doing background checks. It should also be noted that hiring employees before you’ve established a customer base is a big risk. Using an agency allows you to adjust your payroll to your current needs.

By Kar

Dr. Kar works in the interface of digital transformation and data science. Professionally a professor in one of the top B-Schools of Asia and an alumni of XLRI, he has extensive experience in teaching, training, consultancy and research in reputed institutes. He is a regular contributor of Business Fundas and a frequent author in research platforms. He is widely cited as a researcher. Note: The articles authored in this blog are his personal views and does not reflect that of his affiliations.