Guide on How to Open a Nursing Home Facility

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Nursing home facilities provide a much-needed service for people who are unable to care for themselves. Many of these people are elderly and have chronic health conditions that require around-the-clock care. Others are younger people with disabilities or injuries that prevent them from caring for themselves. Nursing homes provide a safe and comfortable place for these individuals to live and receive the care they need.

We’ve put together a guide on how to open a nursing home facility to assist you in the process.

First, what is a nursing home facility?

Nursing homes are commonly used interchangeably with other similar care facilities such as assisted living facilities and senior communities. It’s important to know exactly what a nursing home is before opening up a nursing home.

A nursing home facility is a long-term care facility that provides 24-hour skilled nursing care and rehabilitative services for people who are unable to care for themselves. Nursing homes are also sometimes called skilled nursing facilities or SNFs.

Nursing homes have a variety of features, but all must provide 24-hour skilled nursing care. This means that there must always be a registered nurse (RN) on duty, as well as a licensed practical nurse (LPN) or certified nursing assistant (CNA). Some nursing homes also have doctors, physical therapists, and other professionals on staff.

In addition to around-the-clock skilled nursing care, most nursing homes also provide:

  • Rehabilitative services: Physical, occupational, and speech therapy to help residents regain their strength and abilities
  • Social services: Activities and outings for residents, as well as counseling for residents and their families
  • Nutritional services: Healthy meals and snacks, as well as special diets for residents with specific needs

elderly man sitting on a couch

What are the types of nursing homes?

Nursing homes can be classified into two main types:

  • Basic care nursing homes: These facilities provide 24-hour skilled nursing care and some basic custodial care, such as help with bathing, dressing, and using the restroom
  • Specialized care nursing homes: These facilities provide 24-hour skilled nursing care and more specialized forms of care, such as dementia care or hospice care.

How do you open a nursing home facility?

We’ve put together the common steps and requirements for opening a nursing home facility to guide you through the process.

1. Research about the industry

As mentioned earlier, there are several kinds of nursing home facilities. Do your research and see what your area lacks. Also, be realistic about the level of care you can provide your residents with. Are you only going to offer 24/7 supervision, or do you want to be more specialized and cater to residents with specific needs such as memory care or rehabilitation?

2. Identify your ideal resident

Each nursing home facility is different, and each will have its own ideal resident profile. Some factors to consider when determining your ideal resident may include:

  • The type of care they need: Nursing homes provide a variety of care services, such as custodial care, skilled nursing care, and rehabilitative care. You’ll need to determine which type(s) of care your facility will provide and what type of resident will need those services.
  • Their financial situation: Nursing home care can be expensive, so you’ll need to consider whether your ideal resident will be able to afford the cost of care.
  • Their age and health: Nursing homes typically cater to older adults who may be struggling with chronic health conditions. You’ll need to decide if your facility will be open to all ages or if you’ll focus on caring for a specific age group.
  • Their family situation: Many nursing home residents have family members who are involved in their care. You’ll need to decide if you’re open to caring for residents with family members who live far away or if you prefer residents who have local family support.

3. Create a business plan

Opening a nursing home facility is a significant undertaking. You’ll need to create a comprehensive business plan that outlines your proposed facility, including its location, staffing, services, and finances. This plan will be used to secure funding and licenses, so it’s important that it is well-thought-out and realistic.

4. Draft a budget

When creating a budget for a nursing home, you’ll need to consider the cost of:

  • Startup costs: These are the one-time costs associated with opening a new facility, such as purchasing property, building, or renovating a facility, and obtaining a license.
  • Operating costs: These are the ongoing costs of running a nursing home, such as staffing, supplies, and utility bills.
  • Residents’ care costs: These are the costs of providing care to residents, such as medication, therapy, and hospice care.
  • Marketing and advertising: You’ll need to budget for home care marketing and advertising expenses to help promote your facility and attract new residents.

5. Research your state’s regulations

Each state has its own rules and regulations for nursing homes. You’ll need to make sure you’re familiar with these before you can open your facility.

6. Obtain a license

In order to operate a nursing home, you’ll need to obtain a license from your state’s licensing board. The requirements for this vary from state to state, but in general, you’ll need to be a licensed nurse or have a degree in health care administration. You will also need to pass a background check and have enough money to cover the startup costs.

7. Find a location

You’ll need to find a suitable location for your nursing home. This should be a safe and comfortable place that meets all of the state’s requirements. The facility should also be easily accessible for residents and their families.

8. Hire staff

Once you have your location and license, you can start hiring staff. You’ll need to hire registered nurses, licensed practical nurses, and certified nursing assistants, as well as other professionals such as doctors and physical therapists, if necessary.

9. Admit residents

Once you have everything in place and have obtained all the necessary certifications, you can start admitting residents into your nursing home facility.

10. Advertise

The best way for you to create awareness about your new nursing facility and to generate interest is through marketing. There are a number of ways you can do this. The first is through traditional advertising. You can put up ads in the local newspaper, distribute flyers or tack them onto community bulletin boards, or even rely on word of mouth.

Since we live in the digital world, you also need to utilize the internet to gain leads and new residents. You can try social media ads, boosted posts, and nursing home PPC ads to widen your reach and get more eyes on your nursing home.

business registration and inspection

How much does it cost to open a nursing home facility?

The cost of opening a nursing home facility varies depending on the size and location of the facility, as well as the type of services provided. However, it is typically a very expensive undertaking, with costs ranging from $5 million to $50 million.

Opening a nursing home can be a daunting task, but with the right planning and preparation it can be an immensely rewarding experience.

Here are some tips to help you get started:

Do your research: Learn as much as you can about the industry so that you’re prepared for everything that comes your way.

Know your target audience: Who is your ideal resident? Knowing this will help you determine things like location and amenities.

Get organized: This includes everything from creating budgets and timelines to hiring staff. Have a solid business plan in place: This will help ensure that your nursing home is successful from day one.

We hope you found this guide on how to open a nursing home facility useful!

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