Compass Home Health Agency

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Compass Home Health Agency will be a licensed home health agency in Florida. We provide skilled nursing, physical therapy and home health aide services to adults who are recovering from illness or surgery or managing a long-term condition at home. We serve patients referred by hospitals, physicians and rehabilitation centers who need clinical care after discharge and are not ready for a nursing home.

Why this fits. Most people want to recover at home, and hospitals work hard to avoid sending patients back within weeks. A licensed agency that responds quickly to referrals, communicates with physicians and visits patients on time helps both. Medicare pays for qualifying home health episodes, so demand is steady once an agency is licensed and certified, and Medicaid and private payers add visits.

This is a regulated, capital-heavy business. We plan carefully for the license, the Medicare certification and the long wait to be paid.

Here is what our numbers show. In Year 1 we plan about 120 Medicare skilled care episodes and about 1,800 Medicaid and private pay visits. That brings in sales of $537,000, growing to $2,395,000 by Year 5. We expect a loss of about $47,000 in Year 1, a profit of about $97,600 in Year 2, a profit of about $187,400 in Year 3 and a profit of about $334,000 by Year 5. Clinical staff pay, the wait for Medicare certification and the long time it takes to be paid are our largest costs, and the plan counts all of them.

We need $340,000 in total. Of that, $85,000 is startup costs (two agency vehicles, mobile health record software, office setup, insurance, license fees, compliance and legal work and marketing), and the rest is cash for the first months. I am putting in $60,000 of my own savings and asking for a $280,000 SBA 7(a) loan.

I am Dr. Renee Calloway, a registered nurse and the owner and clinical director. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Compass Home Health Agency will be a limited liability company (LLC) in Florida, owned by Dr. Renee Calloway. We will lease a small licensed administrative office and send nurses, therapists and aides to patients' homes in a service area of about a 30-minute drive.

What we believe. Patients recover best at home when care is skilled, timely and coordinated with their doctors and families.

What we offer:
- Skilled nursing visits for wound care, medication teaching, monitoring and recovery after hospital stays.
- Physical therapy and exercise programs ordered by the patient's physician.
- Home health aide services for bathing, dressing and daily activities under nurse supervision.
- Care coordination with physicians, hospital discharge planners and families.
- Patient and family teaching so that people can manage at home.

What we are required to do, and what we do not do. We are a regulated healthcare business. We hold the state agency license, meet Medicare and Medicaid conditions of participation and follow every privacy rule. We provide care only under a physician's order, we do not pay or accept payment for referrals, we do not bill for care we did not give and we do not promise any health result. We confirm every licensing, certification and billing rule with the state, Medicare and our healthcare attorney before we start.

Where things stand today. The business plan, the policies and the budget are written. The next steps are the attorney and compliance consultant, the license application and the first hospital relationships.

Problem & Opportunity

Patients leaving the hospital often go home with complicated instructions and little help. They may need wound care, therapy or someone to check blood pressure and medications. Family members work, live far away or do not know what to do.

When care at home fails, patients return to the hospital. Hospitals are measured on avoidable returns and look for agencies that respond fast and communicate clearly.

Many home health agencies are slow to accept referrals, stretched thin or hard to reach. Physicians' offices wait for updates, and patients wait for first visits. Some agencies also turn away patients with Medicaid or little coverage.

Patients need an agency that shows up quickly, does careful clinical work and keeps their doctors informed.

Products & Services

Compass Home Health Agency will be the responsive, careful and well-documented home health partner for hospitals, physicians and families.

What makes us different:
1. Fast response. A referral is answered the same day and the first visit happens within 48 hours of discharge when the patient is ready.
2. Skilled, licensed staff. Registered nurses and therapists hold current licenses, and aides complete the required training.
3. Clear communication. Physicians receive timely updates and changes in condition are reported the same day.
4. Patient teaching. Patients and families learn how to manage medicines, wounds and warning signs.
5. Quality records. Every visit is documented in a mobile record system so billing and compliance are accurate.
6. Open to every payer. Medicare, Medicaid and private pay patients receive the same quality of care.

Why patients and referral partners return. Care is on time, the patient feels safe and the doctor is kept informed.

Market Analysis

Who we serve. Adults ages 50 and over, and some younger adults, who need skilled care at home after a hospital stay, surgery or illness, or who manage a long-term condition. Most are referred by hospitals, physicians and rehabilitation centers and are covered by Medicare, Medicaid or private insurance.

How we sized the market. Our service area is the zip codes within about a 30-minute drive of our office. We are not counting on a share of all home health. Year 1 plans about 120 Medicare episodes and about 1,800 other visits, which is a small share of the discharges to home health in our area. Replace this estimate with your own count of hospitals, discharges and physician offices near you.

Where patients come from.
- Hospital discharge planners and case managers.
- Physicians and specialty clinics.
- Rehabilitation centers and assisted living communities.
- Families who ask a doctor for a recommendation.

Who else benefits. Hospitals gain fewer avoidable returns. Physicians gain a reliable partner. Families gain support and information.

Competitive Landscape

What patients and referral sources can do today:

1. Large home health companies. Strong systems and many locations, with sometimes slow responses and rotating staff.
2. Hospital-owned agencies. Convenient for the hospital, and their capacity can be limited.
3. Small independent agencies. Often responsive, and some have limited coverage areas or services.
4. Skilled nursing facilities. Provide 24-hour care for patients who need it and who want a facility.
5. Private duty care companies. Offer non-medical help and are paid privately, not by Medicare.

Where we fit. Compass offers the responsiveness of a small agency with the licenses, clinical systems and compliance of a larger one. We will not try to be the biggest. We will be the agency that answers the phone and follows through.

Marketing & Sales Strategy

How referral sources and patients will find us.

Before opening:
- Meet hospital discharge planners, case managers and physician offices and explain our response times and services.
- Prepare a short information packet and referral form.
- Offer in-service talks to hospital and clinic staff on what home health can and cannot do.
- Join local health provider associations. We do not pay or accept payment for referrals.

After opening:
- Same-day response to every referral and a call back to the referring office.
- Regular updates to physicians and a short thank-you note after the first successful discharge.
- A Google Business Profile and honest reviews from families.
- Community talks at senior centers and churches about recovery at home.
- Quarterly meetings with our top referral partners.

What we will measure. Referrals by source, days to first visit, how many referrals become patients and how many hospital readmissions our patients have.

Operations Plan

How the agency will run.

Licensing and certification. We will complete the state license application and survey and then apply for Medicare certification and accreditation. We plan for the time these take and do not bill Medicare for care until we are certified.

Referral and care. The intake coordinator verifies the physician's order and coverage, a nurse visits to assess the patient and writes a plan of care, and nurses, therapists and aides provide visits under that plan. Changes are reported to the physician.

Staffing in Year 1. Dr. Calloway directs care and runs the business. Two visiting nurses, a part-time physical therapist, two home health aides and an intake coordinator provide care and coordination. Pay for each role is listed at the end of this plan.

Records and billing. A mobile record system documents every visit and supports accurate billing. We submit claims promptly and track receivables weekly.

Quality and safety. We keep policies for patient rights, infection control, emergency planning and privacy. Every visit follows a checklist, supervisors review charts and we investigate any incident. Staff carry identification and visit schedules are shared with patients and families.

Privacy. We follow federal and state privacy rules, limit access to patient information and train every staff member.

Management & Organization

The people who will run Compass Home Health Agency.

Dr. Renee Calloway, owner and clinical director. A registered nurse who holds the state qualifications required for an agency administrator, she leads clinical quality, hiring, compliance and relationships with hospitals and physicians. (Replace this paragraph with your own background.)

Visiting registered nurses. Assess each patient, follow the physician's orders, teach patients and families and supervise aides. Each holds a current state license and passes a background check.

Physical therapist (part time). Evaluates patients and builds exercise plans under physician orders.

Home health aides. Help with personal care and daily activities under nurse supervision. Each completes the required training and competency checks and passes a background check.

Intake coordinator. Takes referrals, verifies coverage, schedules visits and works with physicians' offices.

Outside advisors. A healthcare attorney, a compliance consultant, an accountant who knows Medicare billing, an insurance broker and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: clinical Director / RN Owner $90,000; visiting RN $75,000; physical Therapist (part-time) $55,000; home Health Aide $32,000; intake Coordinator $45,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (6 to 9 months ahead): complete the state license application, hire a healthcare attorney and a compliance consultant, set up the record system and policies, hire the clinical director's first nurses and aides, pass the licensing survey and begin the Medicare certification process.
- Year 1: about 120 Medicare episodes and 1,800 Medicaid and private pay visits, with a small census while certification is completed; $537,000 in sales and a loss of about $47,000.
- Year 2: about 220 Medicare episodes and 3,000 Medicaid and private pay visits and four visiting nurses; $979,000 in sales and a profit of about $97,600.
- Year 3: about 320 Medicare episodes and 4,200 Medicaid and private pay visits and a larger service area; $1,434,000 in sales and a profit of about $187,400.
- Year 4: about 420 Medicare episodes and 5,400 Medicaid and private pay visits and a stronger therapy program; $1,903,800 in sales and a profit of about $303,500.
- Year 5: about 520 Medicare episodes and 6,600 Medicaid and private pay visits and a plan for a second branch; $2,395,000 in sales and a profit of about $334,000.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: referrals received and accepted, patients on service, visits completed on time, days to first visit, claims billed and paid, days of receivables, staff hours and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $340,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $85,000, listed item by item in the Startup Costs section: $38,000 for agency vehicles - 2 used, company-branded, $12,000 for mobile EHR software - setup, training, and Year 1 license, $8,000 for office furniture, computers, and phones, $6,000 for licensed administrative office - first and last month rent and deposit, $5,500 for professional liability insurance - Year 1, $5,500 for general liability and commercial auto insurance - Year 1, $2,500 for state agency license fees and application costs, $3,000 for healthcare attorney - compliance review and employment contracts, $1,000 for HIPAA compliance setup and staff training, $3,500 for website and referral marketing materials.
- The cash the business uses before it breaks even, about $105,000. Medicare and Medicaid pay weeks after the care is given, so the agency pays nurses and aides long before payments arrive.
- A cash cushion of about $131,500: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $236,500, and the three pieces add up to about $321,500, rounded up to the nearest $500: $321,500.
We are raising $18,500 more than that, $340,000 in all, to cover a slower first year than planned and delays in certification. With this funding, the lowest year-end cash balance is about $150,500, at the end of Year 1.

Where the money comes from:
- My own money: $60,000.
- SBA 7(a) loan: $280,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances healthcare businesses, backed by my own savings and the agency's vehicles and equipment as collateral.

How we will pay it back. We expect a loss of about $47,000 in Year 1, a profit of about $97,600 in Year 2, a profit of about $187,400 in Year 3, a profit of about $303,500 in Year 4 and a profit of about $334,000 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 10.5% over 10 years, $3,778 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: the agency's vehicles and equipment and my personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: open with private pay and Medicaid patients only while Medicare certification is pending, with one vehicle and a smaller team, which lowers the startup costs and the loan.
- Phase 2: once the agency is licensed and certified, add Medicare episodes, the second vehicle and the therapy program and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Your state agency license application and administrator qualifications.
- Your Medicare certification application and accreditation plan.
- Your policies for patient rights, infection control, emergency planning and privacy.
- Quotes for the vehicles, record system and insurance.
- Letters of interest from hospitals, physicians and rehabilitation centers.
- Your staff licenses, background checks and competency records.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Medicare Skilled Care Episodes: about $3,200 in Year 1, rising to $3,400; about $100 in direct costs, rising to $108; about 120 in Year 1, growing to 520.
- Medicaid and Private Pay Visits: about $85 in Year 1, rising to $95; about $5 in direct costs, rising to $6; about 1,800 in Year 1, growing to 6,600.
- A Medicare skilled care episode is one patient's course of home health care at an average payment of about $3,200 in Year 1. A Medicaid or private pay visit is one visit at an average of about $85. About 18 percent of a year's billings is still waiting to be paid at the end of the year, which is why the plan sets aside cash to wait.
- Prices rise about 2% a year.
- Equipment ($38,000 in Year 1) covers two used, branded agency vehicles, and later years ($6,000, $10,000, $10,000 and $15,000) replace and add equipment.
- Pay (a full year, per person): clinical Director / RN Owner $90,000; visiting RN $75,000; physical Therapist (part-time) $55,000; home Health Aide $32,000; intake Coordinator $45,000.
- Other yearly costs in Year 1: billing, Compliance and Administrative Staff $60,000, insurance and Compliance $22,000, vehicle and Technology Costs $28,000, marketing and Referral Development $12,000. These grow between 5% and 10% a year.
- Customers and payers pay about 66 days after service, so at the end of Year 1 about $96,660 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs