How to Start a Nursing Home Business

Build a plan for success

Seven in ten U.S. adults age 65 and older will need long-term services and support at some point in their life, according to a study by the U.S. Department of Health and Human Services.

Meanwhile, the Census Bureau found that in the last decade, the U.S. older population grew at its fastest rate since the 1880s. 

At Walmart Business, we know you might look at these statistics and wonder how to start a nursing home business yourself. This guide will walk you through the steps you need to get your idea off the ground.

Study the market and your competition

If you plan on doing business in an area that’s already serviced by multiple facilities, focus your research on ways to make your facility stand out.

If you want to know how to start a nursing home care business in an area that is currently underserved, look into factors that may explain why—such as a notably younger local population, a lack of skilled nursing labor in the area or regulatory difficulties.

Cover your legal and regulatory bases

The regulatory environment around nursing home businesses is changing, thanks in part to pressure from the White House. ProPublica’s list of nursing home inspections offers an accessible way to brush up on potential areas of concern in your particular state or county.

Investigate insurance and Medicare/Medicaid

A substantial portion of your business’s income may come from Medicare, Medicaid and long-term care insurance providers.

Coordinate with their respective public and private providers to ensure you and your accounts team have the resources to make the billing process as smooth as possible. For instance, the Centers for Medicare & Medicaid Services offer detailed information on requirements for compliant programs.

Build your business plan

A solid business plan will help you attract investors, lenders and potential partners to your business. Go into detail on everything from projected finances to daily operations costs to management structure. Introduce it with an executive summary that immediately and clearly sets your business idea apart from the competition.

How much does it cost to start a nursing home? Some projections place the answer to that question at anywhere from $675,000 to $3.6 million for a 40-unit nursing home, but your answer will vary depending on location, scale and other factors.

The U.S. Small Business Administration has more handy guidance for putting together your business plan.

Choose your location

If you’re planning to construct a new nursing home facility, now it’s time to consider specific locations that would work well for your business.

While taking over an existing facility will save on initial expenses, you may end up paying more to update the accommodations to suit current regulations and your business’s level of care.

Stock up on supplies and equipment 

You can’t figure out how to start a senior living home without accounting for the material goods that go into its day-to-day operations. Make sure your business plan accounts for expenses such as nursing home supplies, senior medical supplies and senior living furniture. 

Our complete checklist for elderly care businesses will help give you a head start. 

Staff up for opening 

A nursing home needs licensed professionals to tend to the health needs of patients and general staff to keep the facility running smoothly. Given the sensitive nature of the work, background checks may be required for positions that work closely with residents. 

Bring in your first residents

Naturally, you can only accept residents once you’ve covered all the other requirements for how to start a nursing home. But you can start spreading the word and generating attention in your business long before your doors open.

Think about reaching out to local hospitals and care organizations and offering them a tour of your facility and services. This way, you’ll be top-of-mind when they’re looking for a place to refer their patients.

Referral services such as Care.com and A Place for Mom can also be a great way to reach the families of potential residents.

Make time to make an impact

Your new nursing home business will be busy providing residents quality care and a great living experience—let us handle the supply runs. When you sign up for  Walmart Business+, you’ll unlock free delivery from your local store as well as free shipping.

You’ll even be able to do more with your supply budget thanks to 2% back in rewards, our Spend Analysis tool and access to limited-time offers. Get started today.