How to Start a Home Infusion Therapy Business

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A home infusion therapy business is involved in providing healthcare or supportive care in the home where the patient or client is living.

This business also includes nursing services that provide, train, and educate patients about the safe intravenous administration of drugs. Home infusion therapy is defined as a process where patients receive biologics and drugs at home.

The most common drug therapies administered at home are antibiotics/antivirals, pain management, total parenteral nutrition (TPN), and intravenous immunoglobulin (IVIG). The U.S. home infusion therapy market size was USD 16.22 billion in 2020.

The market is projected to grow from USD 13.05 billion to USD 21.65 billion in 2028 at a CAGR of 7.5% in the 2022-2028 period. Available data shows that in 2020, NHIA estimates that home and specialty infusion is a $19 billion industry made up of over 900 providers serving 3.2 million patients annually.

Steps on How to Start a Home Infusion Therapy Business

Conduct Market Research

If you intend to start a home infusion therapy business, then you must make sure you conduct thorough market research. Market research will help you define the problem or concern you intend to solve with your home infusion therapy business.

With your market research, you will be able to get an in-depth analysis of information on concepts, details of the market space, and what you are going to be up and against. With successful market research for your home infusion therapy business, you will be able to explore the unknown and unlock new possibilities in the industry.

a. Who is the Target Market for Home Infusion Therapy Business?

The target market for a home infusion therapy business is adults who are suffering from;

Multiple Sclerosis
Rheumatoid arthritis
Serious Infections.
Cancer
Dehydration.
Gastrointestinal disease or disorders.
Congestive heart failure patients.
Crohn’s disease patients
People suffering from Hemophilia.
People suffering from immune deficiencies.

b. Is Home Infusion Therapy Business a Profitable Business?

Yes, the home infusion therapy business is quite profitable. As a matter of fact, the market for home infusion is expanding, driven by an aging population and growing incidence of chronic conditions, complex new medications, and increased access to care for previously uninsured patients via the ACA.

c. Are There Existing Niches in the Industry?

No, there are no existing niche ideas when it comes to the home infusion therapy business

d. Who are the Major Competitors?

Option Care Health Inc. (Illinois, U.S.)
Optum, Inc. (Minnesota, U.S.)
CareCentrix, Inc. (Hartford, U.S.)
Lincare Holdings Inc. (Florida, U.S.)
BriovaRx Infusion Services (Houston, U.S.)
Fresenius SE & Co. KGaA (Bad Homburg, Germany)
Baxter International (Deerfield, Illinois, U.S.)
Penn Home Infusion Therapy.
Braun Melsungen AG (Melsungen, Germany)
Terumo Corporation (Tokyo, Japan)
Moog Inc. (New York, U.S.)
Advocate Health Care
Soleo Health
Geisinger Home Infusion Services
Paragon Healthcare
McLaren Health Care Home Infusion Services
Palmetto Infusion Services
Provider Central
HealthQuest Therapeutics.

e. Are There County or State Regulations or Zoning Laws for Home Infusion Therapy Business?

Yes, and the regulations require them to follow the infusion drug administration calendar. Infusion drug administration calendar day means the day on which home infusion therapy services are furnished by skilled professionals in the individual’s home.

The skilled services provided on such day must be so inherently complex that they can only be safely and effectively performed by, or under the supervision of, professional or technical personnel. All home infusion therapy suppliers must provide home infusion therapy services following nationally recognized standards of practice, and following all applicable state and federal laws and regulations.

Please note that in many communities, zoning laws require home infusion therapy providers to apply for a permit from the city. This application process allows the city’s zoning department to determine whether the business meets the zoning rules for the community. Permits also ensure that all home infusion therapy providers are properly licensed.

f. Is There a Franchise for Home Infusion Therapy Business?

Yes, there are franchise opportunities for home infusion therapy. Here are some of them;

Restore
Drip Doctors
Liquivida Lounge
ThrIVe Drip Spa
Vida-Flo
Revive IV Lounge
Enhance IV
The Hydration Room.

g. What Do You Need to Start a Home Infusion Therapy Business?

A Feasibility Report
Business and Marketing Plans
Business Licenses and Permits
EIN (Employer Identification Number)/Federal Tax ID Number.
A Corporate Bank Account
Employees
Equipment and Supplies
Startup and Working Capital

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 home infusion therapy business are;

Creative Home Infusion Therapy Business Name ideas

Pro Health® Home Infusion Therapy, LLC
Mary® Home Infusion Therapy, LLC
Move Doctors™ Home Infusion Therapy, Inc.
Blessed Hands™ Home Infusion Therapy, LLC
Doris Greenish® Home Infusion Therapy, Inc.
Pro Care® Home Infusion Therapy, LLC
Bob Casey® Home Infusion Therapy, LLC
Becky Bandars® Home Infusion Therapy, Inc.
Comfort Care® Home Infusion Therapy, Inc.
Synergy Care® Home Infusion Therapy, LLC
Maria De La Rosa® Home Infusion Therapy, LLC
Pauline George™ Home Infusion Therapy, Inc.
Bridget Decoster™ Home Infusion Therapy, LLC
Inner City® Home Infusion Therapy, LLC
Midland Care® Home Infusion Therapy, Inc.
Universal Care® Home Infusion Therapy, Inc.
Life Page© Home Infusion Therapy, Inc.
Ready Care™ Home Infusion Therapy, LLC
iCare™ Home Infusion Therapy, Inc.
Tim® Home Infusion Therapy, Inc.

Register Your Business

a. What Type of Business Structure is Best for Home Infusion Therapy Business?

Even though there are several options when it comes to the business structure of a home infusion therapy business, the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits.

Please note that an LLC will need an EIN if it has employees or if it will be required to file any of the excise tax forms listed below.

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 Home Infusion Therapy Business?

General Business License
NABP’s Home Infusion Therapy Pharmacy Accreditation
Unrestricted Registered Nurse (RN) License
Health and Safety Permit
Zonal Permits
Director’s License

d. What Type of Certification is Needed to Open a Home Infusion Therapy Business?

You don’t need any special certification to open a home infusion therapy business as long as you have the required licenses and permits.

e. What Documents are Needed to Open a Home Infusion Therapy Business?

DBA
EIN
Business and Liability Insurance
Federal Tax Payer’s ID
State Permit and Building Approval (for your office)
Certificate of Incorporation
Business License
Business Plan
Employment Agreement (offer letters)
Operating Agreement for LLC
Insurance Policy
Online Terms of Use (if you have a website)
Online Privacy Policy Document (for online payment portal)
Company Bylaws
Memorandum of Understanding (MoU).

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

If you are considering starting a home infusion therapy business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Home Infusion Therapy Business?

When it comes to starting a home infusion therapy business, the startup costs vary and could range from $80,000 to over $230,000.

b. What are the Costs Involved in Starting a Home Infusion Therapy Business

Business Registration Fees – $750.
Legal expenses for obtaining licenses and permits – $7,300.
Marketing, Branding and Promotions – $3,000.
Business Consultant Fee – $2,500.
Insurance – $2,400.
Rent/Lease – $50,000.
Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
Operational Cost (salaries of employees, payments of bills et al) – $30,000
Start-up inventory – $25,000
Store Equipment (cash register, security, ventilation, signage) – $4,750
Office Furnishing and Equipping – $10,000
Website: $600
Opening party: $3,000
Miscellaneous: $5,000.

c. What Factors Determine the Cost of Opening a Home Infusion Therapy Business?

The choice of the location you intend to cover
The required licenses and permits
The type of office facility
Additional services offerings
The cost of branding, promotion, and marketing of the home infusion therapy business
The cost of furnishing and equipping the office facility
The cost of the insurance policy covers
The cost of registering the business
Source of your supplies and ongoing expenses
Cost of recruiting and training your staff
The cost for the purchase and customizing of uniforms
The cost of the grand opening of the home infusion therapy business

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

You don’t need to build a facility for your home infusion therapy because you are expected to work in the homes of your clients but you are expected to have an administrative office.

e. What are the Ongoing Expenses of a Home Infusion Therapy Business?

Supplies (the components needed to perform home infusion include the drug (for example, antivirals, immune globulin), equipment (for example, a pump), and supplies (for example, tubing and catheters).
Rent and lease
Cost of transportation for your caregivers
Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
Salaries of employees

f. What is the Average Salary of your Staff?

Chief Medical Director (President) – $55,000 Per Annum
Administrator – $40,000 Per Annum
Home Infusion Therapy Nurses – $39,878 Per Annum
Account Officer – $35,000 Per Annum
Front Desk Officer – $32,000 Per Annum

g. How Do You Get Funding to Start a Home Infusion Therapy 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.

Write a Business Plan

a. Executive Summary

Ready Care™ Home Infusion Therapy, Inc. is a registered and standard home infusion therapy business that will be based in Silver Spring, Maryland. A business that will be responsible for providing in-home infusion therapy for our clients. We will also offer free RN assessments before the commencement of services.

We cover a broad range of services, including drug therapies administered at home such as antibiotics/antivirals, pain management, total parenteral nutrition (TPN), and intravenous immunoglobulin (IVIG). All our service providers are accredited and police checked for your peace of mind.

b. Our Services

Administering medications intravenously to patients
Understand patient’s acute and chronic health issues
Discuss common health concerns, such as falls, incontinence, changing sleep patterns, and sexual issues
Organize medications
Educate the patient about personal safety and disease prevention
Explain and recommend adjustments to the patient’s medication regimen to ensure adherence
Link the patient with local resources as needed.

c. Mission Statement

Our mission is to build a highly successful, home infusion therapy business that will provide compassionate and reliable home infusion therapy services that will help sick people get well, independently in the comfort of their own home.

Vision Statement

Our vision is to create an international model for the home infusion therapy industry in Silver Spring, Maryland.

d. Goals and Objectives

The goals and objectives of a home infusion therapy center are to provide a flexible, reliable option for treating people who are acutely sick and would require infusion therapy in the comfort of their homes.

e. Organizational Structure

Chief Medical Director (President)
Administrator
Home Infusion Therapy Nurse
Account Officer
Front Desk Officer

Marketing Plan

a. SWOT Analysis

Strength:

The strength of our home infusion therapy facility lies in the fact that they have a team of well-qualified professionals manning various job positions in the organization. So also, the location, the business model they will be operating on, and our excellent customer service culture will definitely count as a strong strength for the home infusion therapy business.

Weakness:

Our home infusion therapy business is a new business that is owned by an individual (family), and we may not have the financial muscle to sustain the kind of publicity that will give the business robust visibility and also attract some of the highly experienced hands in the industry.

Opportunities:

The opportunities that are available to home infusion therapy facilities are unlimited. This will be driven by an aging population and growing incidence of chronic conditions, complex new medications, and increased access to care for previously uninsured patients.

Threat:

Just like any other business, one of the major threats you are likely going to face is an economic downturn and unfavorable government policies. It is a fact that an economic downturn affects purchasing/spending power. Another threat that may likely confront a home infusion therapy business is the arrival of a new and bigger home infusion therapy business in the same location where your facility is located.

b. How Do Home Infusion Therapy Businesses Make Money?

Home infusion therapy makes money by charging their clients for services rendered and also from Medicare. This is so because Medicare also covers home infusion therapy services, like nursing visits, caregiver training, and patient monitoring.

c. Payment Options

Payment via bank transfer
Payment with cash
Payment via credit cards
Payment via online bank transfer
Payment via check
Payment via mobile money transfer

d. Sales & Advertising Strategies

Place adverts on both print (newspapers and health-related magazines) and electronic media platforms
Sponsor relevant community-based events/programs for the elderly
Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google + et al to promote your home infusion therapy business
Install your Bill Boards in strategic locations all around your city or state
Distribute your fliers and handbills to target areas
Contact households, businesses, and every adult in the neighborhood where your home infusion therapy will be located informing them about your business and the services you render
List your home infusion therapy in local directories/yellow pages
Advertise your home infusion therapy business on your official website and employ strategies that will help you pull traffic to the site.
Position your Flexi Banners at strategic positions in the location where your home infusion therapy business is located.
Ensure that all your staff members wear your branded shirts and that all your vehicles are well branded with your company logo et al.

Financial Projection

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

Depending on the medication type and dosage, the cost of infusion therapy can range from $200 to $1,000 or more per treatment.

For example, estimated overall costs of infusions per patient per year were $36,663 (rituximab), $36,821 (tocilizumab), $44,973 (infliximab), and $46,532 (abatacept). Of all therapies, the biologic agents represented the greatest share of overall costs, ranging from 87% to $91% of overall costs per year.

b. How Much Profit Do Home Infusion Therapy Business Owners Make a Year in the United States?

It depends, but available reports show that owners of home infusion therapy businesses profit an average of $66,550 per year or more.

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

The capacity of the home infusion therapy (number of clients they service per time)
The location the home infusion therapy business is covering
The management style of the home infusion therapy
The business approach and model of the home infusion therapy
The advertising and marketing strategies adopted by the business
The number of years the home infusion therapy is in business

d. What is the Profit Margin of a Home Infusion Therapy Business?

The profit margin of a home infusion therapy is not fixed. To a large extent, after subtracting your overhead, you could make close to 45 percent as profit.

e. What is the Sales Forecast?

Below is the sales forecast for a home infusion therapy business. It is based on the location of the business and other factors as it relates to such startups in the United States;

First Fiscal Year: $340,000
Second Fiscal Year: $450,000
Third Fiscal Year: $680,000

Set Up your Shop/Office

a. How Do You Choose a Perfect Location for Home Infusion Therapy Business?

The demography of the location especially as it relates to an aging population
The demand for home infusion therapy services in the location
The purchasing power of businesses and the residents of the location
Accessibility of the location
The number of home infusion therapy companies and other medical facilities in the location
The local laws and regulations in the community/state
Traffic, parking and security et al

b. What State and City are Best to Open a Home Infusion Therapy Business?

Las Vegas, Nevada
Los Angeles, California
Chicago, Illinois
Boston, Massachusetts
Silver Spring, Maryland
Rowland Heights, California
Portland, Oregon
New York City, New York
Atlanta, Georgia
Dallas, Texas.

c. What Equipment is Needed to Operate a Home Infusion Therapy Business?

When starting a home infusion therapy business, you will not need nursing equipment, first aid kits, an emergency preparedness kit, and an emergency plan, among other things. But in setting up a small office, you will need computer, printer, software apps, telephones, pager, photocopier, scanner, and fax machine.

Hire Employees

As regards the number of employees that you are expected to kick start the business with, you would need to consider your finance before making the decision. When it comes to starting a standard home infusion therapy facility business, you would need the services of the following professionals; chief medical director (you can occupy this position), administrator, home infusion therapy nurses, front desk officer, and accountant(cashier).

Launch the Business Proper

To launch your home infusion therapy business, your best bet of getting clients is to take your publicity seriously. You do not really need to hold an opening party. You can just invest the money for the party in reaching a wider audience.

a. What Makes a Home Infusion Therapy Business Successful?

Ability to attract clients regularly
Disciplined and dedicated workforce
The heart to serve
A good relationship with stakeholders
Good care techniques and programs.

b. What Happens During a Typical Day at a Home Infusion Therapy Business?

The home infusion therapy is open for the day
The required drugs and supplies are arranged to be used for the day
Home infusion therapy nurses are briefed in the office (in some cases though)
Home infusion therapy nurses are sent to homes where they provide home infusion services
Marketing/website upkeep
Administrative duties are carried out
The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Home Infusion Therapy Business?

Here are some of the skills and experience you would need to build a home infusion therapy business;

Good managerial and human development skills
Good healthcare ethics
An interest in helping other people, regardless of their condition.
The ability to communicate clearly and sensitively when talking to people and their families.
Good listening skills.
Great problem-solving skills and the ability to adapt and act accordingly to situations.
Organizational skills.
Experience working as a home infusion therapy nurse
Experience in the home infusion therapy industry
Experience in home infusion therapy administration and the healthcare industry.