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Home Health Care Services Business Plan

Wheatland Health Services

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Strategy and Implementation Summary

Wheatland Health Services will focus on four counties within southeastern Kansas. Within this geographical area we will target two specific programs: 

  • home health care
  • personal injury case management

Within each area, we have two target markets: the actual client, and the regional physicians, health care facilities, attorneys and insurance companies who refer them to our services.

5.1 Competitive Edge

We start with a competitive edge:  There are currently only three home health care agencies serving southeastern Kansas; Kellene Walker, our Clinical Director, has been employed with one of them for three years and has learned many of the day-to-day administrative functions that make a home health care agency successful. Ms. Walker has built a reputation for outstanding customer service, and it is our belief that her reputation will help to build a strong client base even before our start-up date.

Wheatland Health Services will also stand out in integrating community-based social services, such as Personal Injury Case Management, with our more traditional home health care. This broader base will allow us to access additional clientele and payor bases, adding to our financial stability. This integration also leaves room in the long-term for the addition of other social services, such as Family Counseling, Psycho-Educational Services, and Mental Health Case Management.

5.2 Marketing Strategy

Marketing our service-oriented business requires establishing a reputation for expertise and excellence. It starts with our known contacts who are in positions to recommend us and make referrals to us, and continues with long-term efforts to develop recognition among other professionals within the health care and social service fields.

We will develop and maintain a database of our contacts in the field. Ms. Walker is already well-known to physicians, other nurses and hospital facilities in our market area, and will work to maintain those relationships throughout our start-up process. Ms. Patzer will make initial contacts in the community as she establishes the business entity and provider status with Medicare, Medicaid, private insurance companies and local attorneys. She will then join Ms. Walker in an effort to introduce Wheatland Health Services to area professionals who are potential referral sources. Our communications will be professional, as will our marketing tools such as brochures, business cards, and advertisements.

5.3 Sales Strategy

Sales in our business means quality patient service and utmost satisfaction from referring physicians and health care facilities. It is perpetual business. One doesn't sell home health care and personal injury case management; rather one sells excellent care, availability, and effective interpersonal relationships.

In a service industry, growth can mean loss of quality control, which in turn leads to client dissatisfaction. The services we provide should always reflect the mission and oversight of management. We want our clients to know that the quality of service they receive will be excellent, regardless of the individual service provider performing the service.

We will therefore avoid the temptation to broaden the scope of our services too quickly. Rather, we will focus our immediate attentions on making the services we offer of the highest possible quality. Only when those services are well-established and grounded in excellence will we consider expanding our service base.

5.3.1 Sales Forecast

Annual sales reflect a conservative average of 125 new Home Health Care patients for the first year with a modest increase per year thereafter. This figure is based on the number of patients currently being seen by an existing home health care agency in Southeastern Kansas. Research indicates that this agency is a satellite office of a larger regional organization and investment in the satellite office has been minimal. We believe that with a greater investment in marketing, employee relations, and customer service this client base can grow significantly.

The projected annual figures for Personal Injury Case Management sales are relatively low, as this portion of the business will initially be secondary to the Home Health Care Services. However, we project a jumped up annual growth after the first year, as market analysis indicates there is a significant need for these services. As the Home Health Care portion of the business stabilizes management will focus growth efforts on the Personal Injury Case Management program. 

Sales Forecast
Year 1 Year 2 Year 3
Sales
Home Health Care Sales £413,740 £455,114 £500,625
Personal Injury Case Management Sales £19,200 £24,960 £32,448
Total Sales £432,940 £480,074 £533,073
Direct Cost of Sales Year 1 Year 2 Year 3
Home Health Care Sales £21,721 £22,156 £22,599
Personal Injury Case Management Sales £2,400 £2,520 £2,646
Subtotal Direct Cost of Sales £24,121 £24,676 £25,245

5.4 Milestones

The accompanying table lists important program milestones, with dates and managers in charge, and budgets for each. The milestone schedule indicates our emphasis on planning for implementation.

What the table doesn't show is the commitment behind it. Our business plan includes complete provisions for plan-vs.-actual analysis, and we will hold monthly follow-up meetings to discuss the variance and course corrections.

Milestones
Milestone Start Date End Date Budget Manager Department
Attorney Draws Up LLC 1/1/2004 1/31/2003 £875 Beth Administrator
Verify Numbers For Budget 8/1/2003 9/15/2003 £0 Beth Administrator
Meeting with CPA for tax advise and request for Tax ID 1/7/2004 1/15/2004 £0 Beth Administrator
Identify Office Location 1/2/2004 1/15/2004 £0 Beth Administrator
Finalize Application for Insurance Coverages 12/15/2003 1/31/2004 £4,800 Beth Administrator
Apply for State Licensure 2/1/2004 2/1/2004 £100 Beth Administrator
Apply for Bank Loan 1/2/2004 2/1/2004 £0 Beth & Brad Administrator
Finalize Lease Agreement 2/1/2004 2/1/2004 £800 Beth Administrator
Move Into Offices and Prepare for Site Survey 12/13/2004 2/20/2004 £10,000 Beth Administrator
Site Survey 3/19/2004 3/29/2004 £0 Beth Administrator
Develop/Finalize all forms, procedures, employment contracts 3/15/2003 4/1/2004 £350 Beth & Kellene Administrator
Apply for all Provider Numbers 4/15/2004 6/1/2004 £0 Beth Administrator
Hold First All Staff Meeting 6/15/2004 6/15/2004 £50 Beth & Kellene Administrator
Totals £16,975
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Sales Forecast
Year 1 Year 2 Year 3
Sales
Home Health Care Sales £413,740 £455,114 £500,625
Personal Injury Case Management Sales £19,200 £24,960 £32,448
Total Sales £432,940 £480,074 £533,073
Direct Cost of Sales Year 1 Year 2 Year 3
Home Health Care Sales £21,721 £22,156 £22,599
Personal Injury Case Management Sales £2,400 £2,520 £2,646
Subtotal Direct Cost of Sales £24,121 £24,676 £25,245
Milestones
Milestone Start Date End Date Budget Manager Department
Attorney Draws Up LLC 1/1/2004 1/31/2003 £875 Beth Administrator
Verify Numbers For Budget 8/1/2003 9/15/2003 £0 Beth Administrator
Meeting with CPA for tax advise and request for Tax ID 1/7/2004 1/15/2004 £0 Beth Administrator
Identify Office Location 1/2/2004 1/15/2004 £0 Beth Administrator
Finalize Application for Insurance Coverages 12/15/2003 1/31/2004 £4,800 Beth Administrator
Apply for State Licensure 2/1/2004 2/1/2004 £100 Beth Administrator
Apply for Bank Loan 1/2/2004 2/1/2004 £0 Beth & Brad Administrator
Finalize Lease Agreement 2/1/2004 2/1/2004 £800 Beth Administrator
Move Into Offices and Prepare for Site Survey 12/13/2004 2/20/2004 £10,000 Beth Administrator
Site Survey 3/19/2004 3/29/2004 £0 Beth Administrator
Develop/Finalize all forms, procedures, employment contracts 3/15/2003 4/1/2004 £350 Beth & Kellene Administrator
Apply for all Provider Numbers 4/15/2004 6/1/2004 £0 Beth Administrator
Hold First All Staff Meeting 6/15/2004 6/15/2004 £50 Beth & Kellene Administrator
Totals £16,975