How to Start a Private Duty Nursing Business

A private duty nursing business is a niche healthcare service that provides skilled nursing care and medical assistance to patients in their homes or other private settings. Private duty nurses provide one-on-one care and support to patients of all ages who require continuing medical attention or have complex medical demands.

Private duty nursing companies are primarily privately owned and operated, and they may employ licensed practical nurses (LPNs) or registered nurses (RNs) who are trained and skilled in providing specialized care to patients suffering from a variety of medical illnesses.

These companies may offer a wide range of services, such as pharmaceutical management, wound care, respiratory treatment, infusion therapy, and more.

Available data shows that the global market for private nursing services was valued at $415.7 billion in 2021 and is expected to reach $848.7 billion by 2031, rising at a 7.5% CAGR from 2022 to 2031. Nurses with a Licensed Practical Nurse (LPN) or Registered Nurse (RN) license provide private nursing services.

Steps on How to Start a Private Duty Nursing Business

1. Conduct Market Research

To conduct market research for a private duty nursing business, you should start by defining your target market. Next, you will gather data on your target market by reviewing public data sources and conducting surveys and focus groups.

You should also analyze your competitors and their services to identify any gaps in the market that you could fill. Finally, you can use your research findings to develop a marketing strategy and create a business plan for your private-duty nursing business.

a. Who is the Target Market for Private Duty Nursing Business?

• Old people who need assistance with daily living activities or medical care.
• Individuals with chronic illnesses or disabilities who require ongoing care.
• Patients recovering from surgery or hospitalization who need temporary home healthcare services.
• Individuals with cognitive impairments, such as dementia or Alzheimer’s, who require specialized care.
• Children or adults with complex medical needs who require skilled nursing care in the home.

b. Is Private Duty Nursing Business a Profitable Business?

Yes, the private duty nursing business is a profitable business due to the growing aging population and the demand for specialized care.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to private duty nursing business.

d. Who are the Major Competitors?

• Atria Senior Living
• All Heart Home Care
• Aveanna Healthcare
• Amedisys
• Bayada Home Health Care
• BrightStar Care
• BrightStar Lifecare
• CareGivers America
• Comfort Keepers
• FirstLight Home Care
• Griswold Home Care Visiting Angels
• Home Healthcare of America
• Home Instead Senior Care
• Interim HealthCare
• Maxim Healthcare Services
• Nurse Next Door
• Kindred at Home
• Premier Home Health Care Services
• VNA Health Group.

e. Are There County or State Regulations or Zoning Laws for Private Duty Nursing Businesses in the United States?

Yes, there are county and state regulations and zoning laws for private-duty nursing businesses. Please note that in the United States, county or state regulations and zoning laws for private duty nursing businesses can vary depending on the location.

As a matter of fact, some states may require licensing or certification for private-duty nursing businesses, while others may not have any specific regulations. Zoning laws may also differ, with some cities and counties allowing these businesses to operate in residential neighborhoods, while others may restrict them to commercial areas.

f. Is There a Franchise for Private Duty Nursing Business?

Yes, there are franchise opportunities for private duty nursing businesses and some of them are;

• Always Best Care Senior Services
• BrightStar Care
• ComForCare Home Care
• FirstLight Home Care
• Homewatch CareGivers
• Interim HealthCare
• Nurse Next Door
• Right at Home
• Synergy HomeCare
• Visiting Angels

g. What Do You Need to Start a Private Duty Nursing Business?

Here are some of the general requirements to consider if you want to start a private nursing business in the United States:

• Education and Experience
• Business Plan
• Legal Structure
• Licenses and Permits
• Insurance
• Staffing
• Equipment and Supplies (such as medical equipment, medication management systems, and personal care supplies).
• Financial Management.

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a private duty nursing business are;

Creative Private Duty Nursing Business Name ideas

• Magdalene Rowlands® Private Nursing Services, Inc.
• Caring Comforts® Private Nursing Services
• Compassionate® Nursing Care Services
• Guardian Angels® Private Nursing Services
• Healing Hands® Private Nursing Services
• Selina Martins® Nursing Services, Inc.
• Red Rose® Private Nursing Services, Inc.
• Evergreen® Nursing Care, Inc.
• Harmony Home Health Care
• Hopeful Hearts® Private Nursing Services
• Bright Horizons® Private Nursing Services
• Bianca Theophilus® Nursing Services, Inc.
• Mary and Martha® Nursing Services, Inc.
• Comforting Care® Private Nurses, LLC.
• Heartland® Private Nurse Services, Inc.
• Golden Years® Private Nurses, Inc.
• Vitality™ Private Nursing Services
• Your Private Nursing Solutions
• Careful Kindness® Private Nursing, Inc.
• Tender Touch® Private Nursing, LLC

3. Register Your Business

a. What Type of Business Structure is Best for a Private Duty Nursing Business?

The best business structure for a private duty nursing business depends on several factors such as the size of the business, the number of owners, the level of personal liability the owners are willing to take on, and the tax implications of the different business structures.

However, we usually recommend a limited liability company. An LLC is a hybrid business structure that offers the flexibility of a partnership while providing limited liability protection for its owners. An LLC can have one or more owners, and the owners are not personally liable for the business’s debts or liabilities. This type of business structure is often used for small to medium-sized businesses.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Private Duty Nursing Business?

• General Business License
• Home Health Agency License
• Health and Safety Permit
• Zonal Permits
• Signage Permit

d. What Type of Certification is Needed to Start a Private Duty Nursing Business?

The type of certification needed to start a private duty nursing business may vary depending on state and local regulations. In some states, private duty nursing businesses are required to obtain a home healthcare license or certification, while in other states, it is not compulsory to obtain any special certification except for the basic requirements.

e. What Documents are Needed to Open a Private Duty Nursing Business?

• Accreditation
• Business Plan
• Business License
• Background Checks
• Emergency Preparedness Plan
• Financial Statements
• Federal Employer Identification Number (EIN)
• Insurance
• Professional License
• Policies and Procedures
• Personnel Records
• State Business Registration.

f. Do You Need a Trademark, Copyright, or Patent?

A private duty nursing business may choose to register a trademark to protect its brand identity and prevent others from using a similar name or logo. A private-duty nursing business may choose to copyright its training materials, patient education materials, or other original works.

It is unlikely that a private duty nursing business would require a patent, as the services provided by the business are typically not considered inventions or products.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Private Duty Nursing Business?

Starting a private duty nursing business can cost anywhere from $5,000 to $120,000 or more, depending on how much equipment the business owner decides to buy and the number of staff. Please keep in mind that this figure covers the salary of all employees for the first month of operation.

b. What are the Costs Involved in Starting a Private Duty Nursing Business?

• The total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $8,200.
• Marketing promotion expenses – $3,800
• The cost of hiring a business consultant (writing of business plans inclusive) – $2,500.
• Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400.
• The cost of medication management software, accounting software, CRM software, and Payroll Software – $1,500
• The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of – $35,600.
• Other start-up expenses including stationery – $500
• Phone and utility deposits will cost – ($2,500)
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
• The cost for the purchase of working equipment – $16,027
• The cost of launching an official website – $600
• The cost for the grand opening party – $3,000
• Miscellaneous – $2,500

c. What Factors Determine the Cost of Opening a Private Duty Nursing Business?

• The size of private duty nursing business (number of nurses)
• The choice of location
• The required licenses and permits
• The type of equipment needed
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the private duty nursing business
• The cost of furnishing and equipping the private-duty nursing business
• The cost of the insurance policy covers
• The cost of registering the business
• Source of your supplies and ongoing expenses
• The cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the private duty nursing business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No, it is not necessary to build a facility for a private-duty nursing business. The phrase “private nurse” suggests that services are provided in the client’s home or another domestic setting. This means that the company can operate without owning or renting a physical location.

However, depending on the services offered by the private-duty nursing company, some administrative duties, such as managing patient data or holding staff meetings, may necessitate a physical site. Furthermore, some private-duty nursing companies may decide to rent or buy physical property to serve as a central hub for their operations.

e. What are the Ongoing Expenses of a Private Duty Nursing Business?

• Payroll and benefits for employees, including salaries, taxes, and insurance.
• Medical supplies and equipment, such as bandages, catheters, and mobility aids.
• Transportation costs, including gas and maintenance for vehicles used to travel to client homes.
• Insurance premiums for liability insurance and workers’ compensation insurance.
• Rent or mortgage payments for any office space or warehouse storage.
• Utilities and other office expenses, including phone and internet service, office supplies, and equipment maintenance.
• Marketing and advertising costs to promote the business and attract new clients.
• Continuing education and training for employees to stay up to date on best practices and regulations.
• Software and technology expenses, such as electronic health records systems or scheduling software.
• Fees for professional organizations or accreditation bodies.

f. What is the Average Salary of your Staff?

• Chief Executive Office (President) – $60,000 annually
• Administrator – $45,00 annually
• Nurses – $46,000 annually
• Account Officer – $40,000 annually
• Front Desk Officer – $32,000 Per annually

g. How Do You Get Funding to Start a Private Duty Nursing Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

5. Write a Business Plan

a. Executive Summary

Magdalene Rowlands® Private Nursing Services, Inc. is a private duty nursing business that will operate from San Antonio, Texas. Our team of experienced healthcare professionals and nurses provides a range of services, including medication management, wound care, physical therapy, and more.

At Magdalene Rowlands® Private Nursing Services, Inc., we take pride in providing great customer service and developing tailored treatment programs to fit the specific needs of each of our clients. We collaborate closely with families and caregivers to ensure that our clients receive the best care possible, and we are always accessible to answer questions or offer support.

b. Products and Service

• Assistance with activities of daily living, such as meal preparation and medication reminders.
• Chronic disease management, including diabetes care and cardiac care.
• Companionship and socialization, including assistance with errands and transportation to appointments.
• Mental health services, including counseling and therapy.
• Mobility assistance, including help with transfers and ambulation.
• Palliative care and hospice services for clients with terminal illnesses.
• Physical therapy, occupational therapy, and speech therapy.
• Personal care services, such as bathing, grooming, and dressing.
• Respite care to provide relief for family caregivers.
• Skilled nursing care, including wound care, medication management, and post-surgical care.

c. Mission Statement

Our mission is to help our patients in maintaining their independence and improving their quality of life by providing the nursing care and support they require in the privacy of their own homes.

Vision Statement

Our vision at Brighter Days® Home Care, LLC is to become the leading private nursing company in San Antonio. We aspire to establish a reputation in the industry for excellence and professionalism, as well as to provide our clients with the greatest level of service and knowledge.

d. Goals and Objectives

A private-duty nursing business’s goals and objectives are to help patients preserve their independence and quality of life while receiving the care they require in the comfort and familiarity of their own homes. Those who have recently been discharged from the hospital or who have chronic illnesses or disabilities frequently use private-duty nursing services.

e. Organizational Structure

• Chief Executive Officer (Owner)
• Human Resources and Admin Manager
• Nurses
• Accountants/Cashiers
• Cleaners

Marketing Plan

a. SWOT Analysis

Strength:

• A wide range of services is available, including expert nursing, therapy, and personal care.
• Staff that is well trained and experienced in a variety of medical and personal care services.
• A solid reputation in the community for providing high-quality, empathetic care.
• Solid referral relationships with hospitals, physicians, and senior living complexes.
• Utilization of technology, such as electronic health records and telemedicine, to increase efficiency and deliver better care.

Weakness:

• Reliance on Medicare and Medicaid reimbursement, which is subject to government policy changes.
• Inadequate financial resources for marketing and advertising.
• In the community, there is little brand identification and awareness.
• Geographic constraints limit the ability to provide services to clients in remote or rural areas.
• Due to the intensive nature of the work, there is a high possibility of worker turnover.

Opportunities:

• Increasing need for home healthcare services as the population ages and the trend toward aging in place.
• Possibilities to expand services to new geographic areas or to provide specialized services to specific demographics, such as veterans or people suffering from chronic ailments.
• Using technology to improve care coordination and communication with doctors and other healthcare providers.
• Possibilities to collaborate with other healthcare providers, such as hospitals and primary care physicians, to offer patients with complete care.

Threat:

• Increasing competition in the area from private duty nursing services firms and other home healthcare providers.
• Changes in government reimbursement policies, which may have an impact on revenue and profitability.
• The possibility of regulatory changes or heightened scrutiny from government organizations like the Centers for Medicare and Medicaid Services (CMS).
• The possibility of lawsuits or other legal difficulties arising from patient care or employment practices.
• Rising labor expenses because of a shortage of competent nurses and healthcare staff.

b. How Do Private Duty Nursing Businesses Make Money?

• Billing for services provided through government programs such as Medicare and Medicaid.
• Billing private insurance companies for services provided to clients with private insurance.
• Charging clients directly for services not covered by insurance, such as personal care or companion services.
• Offering specialized services, such as wound care or physical therapy, that can command higher reimbursement rates.
• Partnering with hospitals or other healthcare providers to provide transitional care or post-acute care services.
• Charging fees for assessments or evaluations that are used to develop individualized care plans.

c. Payment Options

• Bank Transfers
• Credit or Debit Card
• Cash
• Checks
• Electronic Payment Systems such as PayPal or Venmo.

d. Sales & Advertising Strategies

Here are some sales and advertising strategies that can be used by a private-duty nursing business:

• Develop a strong brand identity
• Network with healthcare providers
• Utilize online marketing
• Offer promotions and discounts
• Utilize testimonials and reviews
• Offer educational seminars.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

The amount private duty nursing companies charge may vary depending on several factors such as the type of care needed, the location, and the level of experience and certification of the nurses or caregivers. According to the 2021 Genworth Cost of Care Survey, the average hourly rate for a private nurse is $24.00, and the average monthly cost for full-time care is $4,767.

b. How Much Profit Do Private Duty Nursing Business Owners Make a Year in Florida?

The profit that a private duty nursing business owner can make in Florida depends on a variety of criteria, including the company’s size, the number of clients, and the services offered. The average yearly compensation for a private duty nurse agency owner in Florida is roughly $70,000, according to ZipRecruiter data.

c. What Factors Determine the Amount of Profit to Be Made?

• Number of clients
• Services provided
• The location of the business.
• Staffing and labor costs
• Overhead costs, such as rent, utilities, and insurance
• Marketing and advertising
• The level of competition in the location where the business covers.

d. What is the Profit Margin of a Private Duty Nursing Business?

The typical profit margin for a private duty nursing business in the United States, according to industry data, is roughly 15 to 20 percent.

e. What is the Sales Forecast?

• First Fiscal Year (FY1): $230,000
• Second Fiscal Year (FY2): $270,000
• Third Fiscal Year (FY3): $390,000.

6. Set Up your Shop/Office

a. How Do You Choose a Perfect Location for a Private Duty Nursing Business?

• Search for a location with a high concentration of elderly people, as they are the major target market for home healthcare services.
• Determine the number of private nursing homes and other home healthcare providers in the area, as well as their service offerings, in order to avoid overcrowding and limit competition.
• Choose a location that is convenient for potential clients, such as a central location with abundant parking and public transportation.
• Verify that the location complies with state and municipal zoning and rules for private duty nursing businesses.
• Search for a structure that suits the demands of the business, such as one that can house medical equipment while also providing a comfortable environment for clients and employees.
• When selecting a location, consider the cost of rent, utilities, and other expenses, and make sure it fits within the company’s budget.
• Choose a location that is safe and secure for both clients and employees, with adequate lighting, security cameras, and other safety features.

b. What City and State is Best to Open a Private Duty Nursing Business?

• Atlanta, Georgia
• Chicago, Illinois
• Denver, Colorado
• Houston, Texas
• Los Angeles, California
• Miami, Florida
• New York, New York
• Phoenix, Arizona
• Philadelphia, Pennsylvania
• San Diego, California.

c. What Equipment is Needed to Operate a Private Duty Nursing Business?

• Medical equipment such as blood pressure monitors, stethoscopes, thermometers, oxygen tanks, nebulizers, and glucometers.
• Mobility aids such as wheelchairs, walkers, canes, and other mobility aids.
• Personal care items such as bedpans, adult diapers, incontinence pads, and wound care supplies).
• Communication devices such as phones, computers, software, and other devices.
• Office equipment (this includes furniture, computers, and printers).
• Safety equipment such as fire extinguishers, smoke detectors, and other safety equipment).

7. Hire Employees

The size and scope of your new private-duty nursing firm will determine whether or not you need to hire personnel. You may be able to handle all parts of the business on your own if you are establishing a modest, solo firm.

But, if your company expands and more clients are added, you may need to engage extra workers to assist with caregiving, administrative tasks, and other activities. It is essential to find individuals who are qualified and experienced in giving care.

Licensed practical nurses (LPNs), registered nurses (RNs), certified nursing assistants (CNAs), and other healthcare professionals may be included. You will also need to consider the specific skills and certifications needed to provide the services your business offers.

8. Launch the Business Proper

Hosting an opening party for a new private-duty nursing business can be an excellent approach to introducing your company to the community and raising awareness of your services. Yet, whether or not to hold an opening party is ultimately a matter of personal preference and company objectives.

If you want to organize a professional launch for your private duty nursing firm, make sure to invite potential clients, referral sources (such as doctors and hospitals), and other community members who may be interested in your services.

a. What Makes a Private Duty Nursing Business Successful?

• Ability to attract clients on a regular basis
• Availability of good care techniques and programs
• Committed, disciplined, and dedicated workforce
• Good relationship with stakeholders in the industry
• The determination to serve and care for people.

b. What Happens During a Typical Day at a Private Duty Nursing Business?

• The office is open for the day’s work
• Routine staff meetings
• Nurses are assigned and they visit clients to provide the needed private nursing care.
• Documentation
• Harmonization with healthcare providers
• Administrative tasks such as scheduling appointments, billing, invoicing, and managing supplies and equipment.
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Private Duty Nursing Business?

• Leadership skills
• Strong communication skills
• Problem-solving skills
• Empathy and compassion
• Entrepreneurial spirit.
• Experience and knowledge of healthcare, including understanding the regulations and requirements for private duty nursing.

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Frequently Asked Questions

1. What Is Private Duty Nursing?

Private duty nursing is the care of clients by nurses, who may be licensed as RNs (Registered Nurses) or LPNs/LVNs (Licensed Practical Nurses). Such care may be provided in the client’s home or in an institution, such as a hospital, nursing home, or other such facilities.

2. What Is Considered Private Duty Nursing?

Private duty care is a service typically provided to elderly individuals who require assistance with their day-to-day activities. The goal of private duty care is to help maintain a client’s ability to stay in their home comfortably and offer a respite care to other caregivers.

3. How Many Hours Of Home Health Care Does Medicare Cover?

Medicare’s home health benefit covers skilled nursing care and home health aide services provided up to seven days per week for no more than eight hours per day and 28 hours per week. If you need additional care, Medicare provides up to 35 hours per week on a case-by-case basis.

4. What Is Pediatric Private Duty Nursing?

Pediatric private duty nursing, or PDN, is a type of special skills nursing care for children between the ages of 0 and 20. PDN is often necessary for children who require continuous and personalized care. These children must also meet a certain criterion that makes PDN care necessary.

5. What Do Private Duty Nurses Do?

Private duty nurses have several roles that include preventing medical complications that could result in facility placement, providing medically necessary nursing care to patients in their homes, providing care for patients transitioning to in-home care, and assessing, providing, and monitoring professional care for their patients.

6. How Do You Become A Private Duty Nurse?

Step 1: Attend Nursing School.

Step 2: Pass the NCLEX-RN.

Step 3: Gain Experience at the Bedside.

Step 4: Earn Your Certification.

7. Where Can Private Duty Nurses Work?

Private duty nurses generally work at a patient’s private residence; however, they can be found in hospitals or assisted living facilities.

8. What Is The Job Outlook For Private Duty Nurses?

Private duty nurses can anticipate significant job growth. Most private duty nurses are licensed as an RN or LPN–according to the Bureau of Labor Statistics, RNs will experience a 15% increase in job growth.

9. What Is Private Duty Home Care?

Private duty care is a service typically provided to elderly individuals who require assistance with their day-to-day activities. Please note that the goal of private duty care is to help maintain a client’s ability to stay in their home comfortably and offer a respite care to other caregivers.

10. What Is A Private Duty Caregiver?

Private duty home care is a service provided to elderly individuals who are in need of assistance with day-to-day activities. A private duty home caregiver visits your home or the home of your loved one and helps with activities such as meal preparation, housekeeping, and personal grooming and hygiene.

11. Who Pays For Private Duty Nursing?

Private duty home care is home care that is delivered on a private-pay basis, which means clients or their families pay either the home care agency or the caregiver.

12. Does Medicare Pay For Visiting Angels?

Yes, as long as the patients meet the three criteria below, Medicare will cover 100% of the cost for the first 20 days. From days 21-100, Medicare will cover $185.50 per day. After 100 days, you will assume all costs.

13. How Long Will Medicare Pay For Home Health Care?

Medicare can pay the full cost of home healthcare for up to 60 days at a time.

14. What Services Does Kidscare Home Health Provide?

KidsCare Home Health is a pediatric home health agency serving Texas, Colorado, Oregon, and Idaho. They focus on nursing, speech therapy, physical therapy, and occupational therapy as well as provide case management for children up to 18 years old.

15. Does Medicare And Medicaid Cover Home Care?

Medicare only covers home healthcare if you meet certain criteria, such as being homebound and needing skilled care. Even if you qualify for Medicare-covered home healthcare, you may need additional services. Medicaid can be used to supplement the amount and kind of services you get.

16. What Is The Difference Between Private Duty Nursing Care And Home Health Care?

The basic difference between private nursing duty care and home healthcare is that private duty nursing care needs to be prescribed by a doctor. Care is provided primarily in shifts, up to 24 hours a day, 7 days a week. Home healthcare needs to be prescribed by a doctor.

17. What Services Does Home Health Care Provide?

At-home care services may include:

• Doctor care. A doctor may visit a patient at home to diagnose and treat the illness(es).
• Nursing care.
• Physical, occupational, and/or speech therapy.
• Medical social services.
• Care from home health aides.
• Homemaker or basic assistance care.

18. What Is The Difference Between A Hospital And A Skilled Nursing Facility?

It’s basically the same level of nursing care you get in the hospital. In addition to skilled nursing, care may include rehabilitative services from licensed physical, occupational or speech therapists. A skilled nursing facility provides transitional care. The goal is to get well enough to go home.

19. What Is Home Health Care?

Home healthcare is a wide range of healthcare services that can be given in your home for an illness or injury. Home healthcare is usually less expensive, more convenient, and just as effective as care you get in a hospital or skilled nursing facility (SNF).