Needs tips/tricks/advices - starting a group/nursing home

eddy · Sep 26, 2005

In my opinion the best tip I can give you is don't bother.

Only crooks can make a living in this industry any more. The reimbursement just isn't there to maintain a profitable (meaning sustainable) nursing home without cooking the books, playing the liability shift game (fake shell companies going "bankrupt" ever couple of years) or committing medicaid/medicare fraud.

PBAJS · Sep 26, 2005

group home ... something like the assisted living facilities here?

i agree with the above poster "reimbursement just isn't there". don't even think about getting rich. there might be a few places around here that are seeing a small profit, because they fill the beds with private pay clientele.

how about employees ... do they need to have a criminal background check? do they have to be a cna or whatever you might call that position?

and food purchasing, storage, preparation, serving, etc. at one of the nearby assisted living facilities (which was under the former ownership for many, many years, had always passed inspection, and then was in the process of being sold) the inspectors required that a 'vegetable sink' be installed before they would give the license to open and operate the kitchen. there were already employees with food safety certificates, so that wasn't a problem.

repeating what someone said a long time ago ... go for it ... you won't know until you try.

bang · Sep 27, 2005

Thanks for the replies. Appreciate all the commments.

First, the target right now is to gain the experience and set our feet, thus the reason why theres 2 of us starting it. Profit will be next in line, if there is.

Assisted living is a bit different, as here in Canada, you dont have to go through the same licensing. Its a different independent body that gives u the permit, but u will be limited to that level of care. Staff will have all that as it is a requirement ,tb test, crim check, etc. Food storage requirement is not that tight as it is nota care facility (>7 residents). As for the clients, might be a tough one, but nowadays a lot of unique individuals are wanting home-like setting rather than a care facility. Our care level will range from mild to moderate dementia, frail and elderly, and residents living with illnesses or handicap that restrict self care but does not require acute care or continuos supervision.

As for the update, today i spoke with our licensing officer and were almost finished with the requirements (and there is alot!), then the city will check the building, fire, electrical, everything, then interview one of us. Hopefully we get approved. Then on to the next struggle.. finding a client. Wish me luck.

Editorial Team / Admin · Sep 27, 2005

Thanks for the replies. Appreciate all the commments.
First, the target right now is to gain the experience and set our feet, thus the reason why theres 2 of us starting it. Profit will be next in line, if there is.
Assisted living is a bit different, as here in Canada, you dont have to go through the same licensing. Its a different independent body that gives u the permit, but u will be limited to that level of care. Staff will have all that as it is a requirement ,tb test, crim check, etc. Food storage requirement is not that tight as it is nota care facility (>7 residents). As for the clients, might be a tough one, but nowadays a lot of unique individuals are wanting home-like setting rather than a care facility. Our care level will range from mild to moderate dementia, frail and elderly, and residents living with illnesses or handicap that restrict self care but does not require acute care or continuos supervision.
As for the update, today i spoke with our licensing officer and were almost finished with the requirements (and there is alot!), then the city will check the building, fire, electrical, everything, then interview one of us. Hopefully we get approved. Then on to the next struggle.. finding a client. Wish me luck.

I wish you much good luck with your future enterprise, bang.

bang · Sep 27, 2005

thanks Siri.

eddy · Oct 5, 2005

I apologize Bang. I somewhat misunderstood your original post. I was thinking NURSING HOME not small assisted living house when I read it originally.

However, my opinion still stands. You will struggle financially. It is incredibly difficult to run a sustainable business in this line of service.

Also, don't be fooled. You MUST make a profit, even if you don't care about how much you "bring in" personally. There will be slow times (low census), unexpected "events" (big expenses you simply can't plan for) and other issues financially. If you don't build up enough cold hard CASH, you'll be caught without a dime when you need it most.... meaning you'll be forced out of business.

Profits are good. Profits are NEEDED. If you can't formulate a reasonable business plan with a sound profit margin built in to your budgets, please reconsider. Creditors don't care if you are doing a service to the community... They just want to be paid, yesterday.

So, do NOT make profits secondary. It is the single most important aspect of a sustainable business. Without it, intentions mean nothing. :)

boulergirl, CNA · Oct 5, 2005

Two of my coworkers are starting their own group homes. (One of them is for developmentally disabled residents.) Both of these employees have at least two other jobs, so they have additional income to live on.

bang · Oct 5, 2005

eddy - no worries. and tnx for the nice advice, will keep that in mind.

boulergirl - yep same here. we are going to stay with our full time jobs and maybe even stick with a part time job. tnx.

*update

licensing here doesnt want co-ownership bla bla.. they want us to get incorporated so thats another hassle. lots of requirements but i dont wanna slow down and lose the interest. i need an advice/comment though. since we are renting, we have to hold the place for at least max of 4 months (hopefully not that long) while the licensing is getting done. so our plan is to get 2 residents for now (since no license is needed if it is

bjvan · Oct 24, 2005

I think the best way to make these decisions is by developong a BUSINESS PLAN. A Bus Plan will help you make an informed decision based on FACTS in YOUR situation. Your local Small Business Development Center can be quite helpful - and it's FREE.