Nursing Home Business Plan Template

Nursing Home Business Plan Template

If you want to start a Nursing Home business or expand your current Nursing Home business, you need a business plan.

The following Nursing Home business plan template gives you the key elements to include in a winning Nursing Home business plan.

You can download our nursing home business plan template (including a full, customizable financial model) to your computer here.

 

Sample Nursing Home Business Plan Template

Below is a nursing home business plan example with each of the key sections to help you write a nursing home business plan for your own company.

I. Executive Summary

Business Overview

[Company Name] is founded by [Founder’s Name], a Registered Nurse who has worked for the past twenty years in various nursing homes around [company location]. He specializes in providing skilled nursing care and light therapy for elderly and disabled patients. [Company Name] will be a clean, comfortable, and highly capable facility that will be able to provide the highest quality of care for this special segment of the population. It will be moderately priced and will work with all types of insurance.

Services Offered

[Company Name] will provide rooms, meals, social activities, personal care, 24-hour nursing supervision and access to medical services when needed. In addition, the facility will offer interim medical care (after a hospital stay) and respite care.

Customer Focus

[Company Name] will serve the aging and disabled community of [company location]. Many of the aging and disabled community has special and severe conditions that prevent them from living independently and require constant oversight and 24-hour care in a comfortable facility.

The demographics of the target customer profile is as follows:

• 900,652 residents
• Average income of $60,000
• 75.4% married
• 45.7% retired and/or over the age of 55
• Median age: 39 years

Management Team

[Company Name] is owned and operated by [Founder’s Name], a Registered Nurse who has worked for the past twenty years in various nursing homes around [company location]. At each nursing home he worked at, he was never satisfied with the level of care, compassion, and cleanliness of each facility. He knew in his heart that this disadvantaged segment of the population deserved a better quality of care, and he set out to find a building where he could lead a team in providing the best level of nursing and rehab services in the area.

Aside from the nurses, therapists, kitchen staff, janitorial, and social worker he will have on staff, [Founder’s Name] will also employ a receptionist and Office Manager to help with the administration and operation of the nursing home.

Success Factors

[Company Name] has several advantages over its competition. Those advantages include:

• Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are not only knowledgeable in their field, but place a special emphasis on compassion.
• Location: [Company Name] will be able to service the entire metropolitan area of [company location] and its surrounding areas.
• Quality Care: [Company Name] will provide expert services, and patients will receive quality treatment and care so that the resident is as comfortable as possible.
• Facility: [Company Name]’s facility will be constructed ADA-compliant, spacious, clean, and comfortable to ensure each resident enjoys maximum comfort.
• Pricing: [Company Name]’s pricing will be more affordable than its competition. The company will also work on payment arrangements with the resident and their family so that the patient won’t have to sacrifice any type of care they might require because the cost is too high. The company will also accept most types of insurance, as well as Medicare and Medicaid.

Financial Highlights

[Company Name] is seeking $250,000 in funding to launch its nursing home. The capital will be used for funding capital expenditures, construction build-out, staffing, training, marketing and advertising expenses, and working capital.

The breakout of the funding may be seen below:

• Facility design/build-out: $100,000
• Capital expenditures: $20,000
• Furniture, fixture, and equipment: $35,000
• Marketing and advertising: $10,000
• Staffing costs: $75,000
• Working capital: $10,000

The following graph outlines the pro forma financial projections for [Company Name] over the next five years:

 

II. Company Overview

Who is [Company Name]?

[Company Name], located at [insert location here] is a new nursing home that provides living quarters, inpatient nursing and rehabilitation services for people with a chronic illness or disability.

[Company Name] was founded by [Founder’s Name]. [Founder’s Name] is a registered nurse that has worked at other nursing care facilities since he graduated from nursing school. His years of experience have taught him how to care for aging and disabled adults in a safe and supportive manner. [Founder’s Name] realizes the need for quality and affordable nursing care services as his former employers did not keep the facility to the standard of cleanliness and care that [Founder’s Name] is comfortable with. Aside from the facilities, [Founder’s Name] has a high level of expectation of personnel who are employed at the nursing home. It takes a lot of patience and focus to provide care and comfort to the elderly and disabled individuals.

[Company Name] is located in [Company Location]. There is a large population of aging and disabled adults in the metro area, and not enough assisted living facilities to support this segment of the population.

[Company Name]’s History

[Founder’s Name] has been consulting with an attorney and CPA over the last few months to understand the business and financial obligations that go with owning a business. His lawyer has advised [Founder’s Name] that [Company Name] should be incorporated as an S-Corporation on [date of incorporation].

[Founder’s Name] has identified the neighborhood and building [Company Name] will be located. He has begun lease negotiations and pricing out construction to transform the building into a comfortable and capable home for those who will be patients at the nursing home.

Since incorporation, the company has achieved the following milestones:

• Found location and signed Letter of Intent to lease it
• Decided on the company name, and developed the logo and website located at www…
• Finalized list of services the company will provide
• Determined the equipment and inventory requirements
• Began recruiting key employees for the nursing home

[Company Name]’s Services

Below is [Company Name]’s list of services. All services will be provided by a trained and licensed staff.

• Three meals a day
• Monitoring of medication
• Personal care, including dressing and bathing
• Housekeeping and laundry
• 24-hour emergency care
• Skilled nursing services and some medical services
• Social and recreational activities
• Light exercise program

[Company Name] will provide daily services for extreme illness and conditions as well as meet with the family and loved ones of the resident as often as the family requests.

 

III. Industry Analysis

The Nursing Homes industry is expected to grow robustly over the next five years.

The elderly population is expected to continue growing as more of the baby boomer generation reaches retirement age. Thus, the number of adults aged 65 and older is expected to grow at an annualized rate of 3.0%, further supporting demand for industry services. As a result, industry revenue is forecast to rise at an annualized rate of 4.6% to $176 billion during the same period.

As demand rises over the next five years, growth in the number of industry facilities is expected to outpace the number of companies. This slight increase in concentration would enable large companies to offer more complete nursing care services, enabling individual providers to simultaneously offer skilled nursing care, long-term residential care and specialized healthcare services.

Further, consolidation will help operators to manage facility sizes, keep occupancy rates high, and increase the quality of treatment.

 

IV. Customer Analysis

Demographic Profile of Target Market

[Company Name] will serve the aging and disabled residents of [company location] and its surrounding areas.

The community of [company location] has thousands of retired, elderly adults who require a greater need of attention. Many of the aging community has diabetes, arthritis, Alzheimer’s, dementia, etc. and require round the clock care. There is also a large segment of disabled adults who have disabilities that make it difficult to live independently.

Below is a demographic breakdown of this area:

Customer Segmentation

We will primarily target the following four customer segments:

• Elderly individuals who are being released from the hospital and their doctors highly recommended for them to reside in a facility that can provide 24-hour care.
• Elderly patients who had a recent fall and require physical and/or occupational therapy to heal from their injury.
• Elderly patients who are suffering from Alzheimer’s or dementia and would require constant oversight and attention.
• Disabled individuals who are unable to live independently and require 24-hour care and attention to enable a comfortable and enjoyable quality of life.

 

V. Competitive Analysis

Direct & Indirect Competitors

Hills Care Center
Established in 1998, Hills Care Center is a privately held skilled nursing and rehabilitation company. The company operates 26 facilities in [state] and specializes in both short-term rehabilitation and long-term care. The local Hills Care Center offers extensive activities both inside and outside the facility, as well as seven-day-a-week admission and physician services. Further, it provides modern amenities including Wi-Fi, Flat Screen TVs, Cable TV, Salon / Barbershop, and Restaurant-Style Dining.

Mercy Manor
Incorporated in 1987, Mercy Manor is a privately owned business that owns and operates nursing homes and an assisted living centers. The company operates 50 facilities in [state] that provides long-term skilled nursing care and short-term rehabilitation solutions including physical therapy services for various conditions. The local Mercy Manor offers a full continuum of services and care focused around each individual for both long-term skilled nursing care and short-term rehabilitation services. This facility’s amenities include a 900 Square-Foot Rehabilitation / Therapy Center, On-Site Medical Director, On-Site Podiatrist, On-Site Dentist, On-Site Salon / Spa Services, On-Site Religious Services, State-of-the-Art Therapy Equipment, Pet Therapy, Wi-Fi Accessibility, Fine Dining with Gourmet Menus, Warmly Decorated Private and Semi-Private Rooms, In-Room Free Cable Service, In-Room Phones (Arranged by Family), Manicured Gardens, Outdoor Courtyard, and a Family / Resident Lounge.

Everwell Health & Rehabilitation Center
Incorporated in 2017, Everwell Health & Rehabilitation Center is a privately held business that provides skilled nursing and senior living services. The company currently operates 8 facilities within the metro area and has aspirations to expand its reach throughout the United States. The facilities employ more than 2,000 people and house 1,062 beds, and specialize in post-acute rehabilitation and skilled nursing care. The Everwell Health & Rehabilitation Center features a wide range of accommodation options, a fine dining plaza, meticulously manicured grounds, hair salon, Private and semi-private suites, dedicated on-site concierge, Wi-Fi throughout, dedicated private phone lines, cable television, an Ice cream parlor, and a full calendar of activities and programs designed by Certified Recreational Therapists.

Competitive Advantage

[Company Name] has several advantages over its competition. Those advantages include:

• Compassionate Staff: Knowledgeable and friendly staff of nurses, therapists, aides, and social workers who are not only knowledgeable in their field, but place a special emphasis on compassion.
• Location: [Company Name] will be able to service the entire metropolitan area of [company location].
• Quality Care: [Company Name] will provide expert services and their patients will receive quality treatment and care so that the resident is as comfortable as possible.
• Facility: [Company Name]’s facility will be constructed ADA-compliant, spacious, clean, and comfortable to ensure the resident enjoys maximum comfort.
• Pricing: [Company Name]’s pricing will be more affordable than its competition. The company will also work on payment arrangements with the resident and their family so that the patient won’t have to sacrifice any type of care they might require because the cost is too high. The company will also accept most types of insurance, as well as Medicare and Medicaid.

 

VI. Marketing Plan

You can download our nursing home business plan template (including a full, customizable financial model) to your computer here.

The [Company Name] Brand

The [Company Name] brand will focus on the Company’s unique value proposition:

• Knowledgeable, friendly, expert staff of healthcare professionals.
• Quality level of service and care.
• Cleanest and most comfortable nursing home in the metro area.
• Most competitive pricing for the area’s nursing care facilities.

Promotions Strategy

[Company Name] will target the elderly and disabled residents of [company location] within a 20-30 mile radius. The Company’s promotions strategy to reach the most clientele include:

Local Hospitals
[Company Name] will work to make sure the hospitals send referrals and highly recommend [company name] to its patients and their families upon releasing them from the hospital and into a nursing home.

Home Health Care
[Company Name] will work with home health care agencies so that they recommend their nursing home for when a patient has to be moved from home health care and into a nursing home because their condition has worsened and now require a greater amount of care and oversight.

Website
[Company Name] will have an informative and attractive website that will feature all its services and referrals from other satisfied residents and their families. The website will be highly informative and be designed in a way that is user-friendly and eye-catching.

SEO
[Company Name] will invest in a high SEO presence so that the nursing home is listed at the top of the Google or Bing search engine when area individuals research nursing care options in [company location].

Billboard
[Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The location of the billboard will be in an area of town where there are many doctors’ offices, rehab facilities, and a hospital nearby.

Advertising
[Company Name] will invest in advertisements in featured local publications, such as community newspapers and newsletters that focus on the retired and aging population.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing its services.

 

VII. Operations Plan

Functional Roles

[Company Name] will need to fulfill the following functional roles in order to execute their business plan and ensure the company’s success:

Administrative Functions

• General & administrative functions including legal, marketing, bookkeeping, tax, etc.
• Staff management and scheduling
• Hiring and training staff

Health Care Functions

• Nurse
• Physical Therapist
• Occupational Therapist
• Personal Trainers who place on emphasis on elderly and disabled
• Social Worker

Miscellaneous

• Cook or chef
• Kitchen staff
• Social director
• Janitorial

Milestones

[Company Name] expects to achieve the following milestones in the following [xyz] months:

• Secure 20,000 square foot facility
• Develop website, logo, and company website
• Secure small business loan bank financing
• Develop and finalize list of nursing care services
• Hire and train staff
• Begin advertising campaign with hospitals, billboard, doctors, social workers, and print publications
• Grand Opening of [Company Name]

 

VIII. Management Team

Management Team Members

[Company Name] is owned and operated by [Founder’s Name], a Registered Nurse who has worked for the past twenty years in various nursing homes around [company location]. At each nursing home he worked at, he was never satisfied with the level of care, compassion, and cleanliness of each facility. He knew in his heart that this disadvantaged segment of the population deserved a better quality of care and he set out to find a building where he could lead a team in providing the best level of nursing and rehab services in the area.

[Founder’s Name] graduated from the University of ABC with a BSN (Bachelors of Science in Nursing).

Hiring Plan

[Founder’s Name] will serve as the agency Founder and Chief Executive Officer. He will hire the following personnel in order to maintain a high-quality nursing home.

• Office Manager will assist [Founder’s Name] run the administrative tasks to operate the nursing home. This person will handle bookkeeping, tax payments, payroll, and office inventory.
• Nurses – 3–4 nurses will be on staff to provide the nursing services.
• Occupational Therapist – 1 OT will be on staff to provide occupational therapy services.
• Physical Therapist – 1 PT will be on staff to provide physical therapy services.
• Social Director – will organize all events, games, and activities for the residents.
• Trainer – will develop an exercise and activity program for each resident so that they are able to partake in fitness activities suitable for their specific needs.
• Social Worker – 1 social worker will be on staff to oversee the welfare and care of each resident.
• Kitchen staff – 1 chef or cook and 2 – 3 dishwashers/assistant cooks to help prepare and serve the meals for the resident.
• Janitorial staff – 3 – 4 custodial workers to ensure the facility is clean at all times.

 

IX. Financial Plan

Revenue and Cost Drivers

The revenues for [Company Name] will come from the fees it will charge the residents and their insurance for the health care services it provides.

The cost drivers for the company will be the payroll of the staff, lease on the building, office supplies and equipment, food, beverages, social event supplies, decorations, fitness equipment, and marketing and advertising costs.

Capital Requirements and Use of Funds

[Company Name] is seeking $250,000 in funding to launch its nursing home. The capital will be used for funding capital expenditures, construction build-out, staffing, training, marketing and advertising expenses, and working capital.

The breakout of the funding may be seen below:

• Facility design/build-out: $100,000
• Capital expenditures: $20,000
• Furniture, fixture, and equipment: $35,000
• Marketing and advertising: $10,000
• Staffing costs: $75,000
• Working capital: $10,000

Key Assumptions

The following table reflects the key revenue and cost assumptions made in the financial model:

 
5 Year Annual Income Statement

 
5 Year Annual Balance Sheet

 
5 Year Annual Cash Flow Statement