A hospice business is a type of healthcare organization that provides end-of-life care and support for patients who are terminally ill or have a serious illness with a limited life expectancy. Hospice businesses focus on providing comfort and managing pain and symptoms, rather than curative treatment.
Hospice care is typically provided in a patient’s home or in a hospice facility and may include a range of services such as medical care, pain management, emotional and spiritual support, and assistance with daily living activities. Hospice businesses may also offer bereavement support to families and loved ones after a patient’s death.
Hospice businesses may be for-profit or non-profit organizations and may be independent or affiliated with a hospital or healthcare system.
They are often staffed by a team of healthcare professionals, including doctors, nurses, social workers, and chaplains, who work together to provide comprehensive care to patients and their families.
Steps on How to Write a Hospice Business Plan
Our hospice business, Serenity Hospice Care, is a new healthcare organization based in Charlotte, North Carolina in a central location that is easily accessible to patients and their families.
Our hospice will be staffed by a team of experienced healthcare professionals, including doctors, nurses, social workers, and chaplains, who are committed to providing individualized care to each patient.
We will offer a range of services, including medical care, pain management, emotional and spiritual support, and assistance with daily living activities.
We understand that the end-of-life journey is a challenging and emotional experience for both patients and their families.
At Serenity Hospice Care, we strive to create a calm and peaceful environment where patients and their loved ones feel supported and cared for.
Our team will work closely with patients and their families to develop personalized care plans that address their unique needs and preferences.
At Serenity® Hospice Care, we are committed to providing exceptional end-of-life care to our patients and their families.
We believe that everyone deserves to be treated with dignity and respect during this difficult time, and we are dedicated to ensuring that our patients receive the highest level of care and support.
a. Our Products and Services
Serenity® Hospice Care will offer the following services;
- Palliative care
- Nursing care
- Social services
- Spiritual care
- Respite care
- Bereavement support
Our service is geared towards providing compassionate care that meets the physical, emotional, and spiritual needs of those who are facing the end of life.
b. Nature of the Business
Our hospice business will operate with a business-to-consumer business model.
c. The Industry
Serenity® Hospice Care will operate in the healthcare industry.
d. Mission Statement
To provide compassionate and comprehensive end-of-life care to patients and their families, with a focus on the quality of life, dignity, and respect for each individual’s unique needs and wishes.
e. Vision Statement
To be recognized as a leading provider of hospice care, setting the standard for compassionate, patient-centered, and innovative end-of-life services, while creating a supportive and empowering work environment for our employees and volunteers.
f. Our Tagline (Slogan)
Serenity® Hospice Care – We Care Till The Final Breathe!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Serenity® Hospice Care will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Head of Hospice (President)
- Medication Management Counselors
- Nurse’s Aides
- Account Officer
- Front Desk Officer
- Security Guards
i. Ownership/Shareholder Structure and Board Members
- Raul Anthony (Owner and Chairman / Chief Executive Officer) 52 Percent Shares
- Solomon McKenzie (Board Member) 18 Percent Shares
- Stanley Jordan (Board Member) 10 Percent Shares
- Joel Santiago (Board Member) 10 Percent Shares
- Rita Smith (Board Member and Secretary) 10 Percent Shares.
- Highly skilled and compassionate staff with expertise in end-of-life care
- Strong relationships with local healthcare providers and community organizations
- Comprehensive services that meet the physical, emotional, and spiritual needs of patients and families
- Well-established reputation for quality care and positive patient outcomes.
- Limited funding for hospice care, which may impact the availability of services for some patients
- Difficulty attracting and retaining qualified staff due to the emotional demands of the job
- Limited public awareness of hospice care and its benefits, leading to underutilization of services.
- Increasing demand for hospice care as the population ages and the prevalence of chronic illnesses grows
- Expansion of services to new geographic areas or patient populations
- Collaborations with healthcare providers and community organizations to improve access to hospice care.
i. How Big is the Industry?
The Hospice industry was worth over $19.3 billion in revenue in 2021, and it is expected to continue to grow at an annual rate of 5.2% through 2026.
ii. Is the Industry Growing or Declining?
The hospice industry has been growing steadily in recent years, as the population of seniors in need of long-term care continues to increase. According to a report by IBISWorld, the hospice industry generated $19.3 billion in revenue in 2021, and it is expected to continue to grow at an annual rate of 5.2% through 2026.
The COVID-19 pandemic has also contributed to increased demand for hospice services, as many seniors and their families have sought out safer and more personalized care options. The pandemic has also highlighted the need for improved infection control measures and staffing levels in hospice facilities.
iii. What are the Future Trends in the Industry
Technology is becoming more prevalent in hospice facilities, and this trend is expected to continue in the future. This includes the use of smart home technology, telehealth services, and electronic health records.
Hospice facilities are moving towards more personalized care plans that take into account each resident’s unique needs and preferences. This includes offering individualized meal plans, medication management, and other services tailored to each resident’s needs.
iv. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the hospice business.
v. Can You Sell a Franchise of your Business in the Future?
Serenity® Hospice Care has plans to open our offices in major cities all across the United States of America.
- Competition from other hospice providers or healthcare organizations offering similar services
- Changes in healthcare policy or reimbursement rates that may impact funding for hospice care
- Regulatory changes or legal issues may impact the delivery of hospice services.
i. Who are the Major Competitors?
- VITAS Healthcare
- Hospice of the Valley
- Seasons Hospice & Palliative Care
- Amedisys Hospice
- Kindred Hospice
- Crossroads Hospice & Palliative Care
- Compassus Hospice & Palliative Care
- Hospice Compassus
- Heartland Hospice Services
- Gentiva Hospice
- Encompass Health Hospice
- Harbor Hospice
- Community Hospice & Palliative Care
- Grace Hospice
- Bristol Hospice
- Hospice of Dayton
- HCR ManorCare Hospice
- Unity Hospice
- Alive Hospice
- Care Hospice.
ii. Is There a Franchise for Hospice Business?
It is important to note that hospice care is typically not franchised, as it is regulated by state and federal laws and requires specific licenses and certifications to operate.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Hospice Businesses?
Hospice care is regulated at both the state and federal levels and must comply with a variety of regulations related to the quality of care, patient rights, and administrative and financial management. Here are some of the key regulations and policies affecting hospice businesses:
- Medicare and Medicaid regulations: Hospice services are covered under the Medicare and Medicaid programs, which set specific eligibility criteria, payment rates, and quality standards. State licensing and certification requirements: Each state has its own requirements for hospice providers, including licensing and certification standards, staffing requirements, and reporting and oversight requirements.
- Accreditation requirements: Hospice providers may choose to seek accreditation from organizations such as the Joint Commission or the Accreditation Commission for Health Care to demonstrate compliance with national quality standards.
- Zoning laws: Hospice businesses may be subject to zoning laws that regulate where healthcare facilities can be located and what types of activities can take place in those locations.
- HIPAA privacy regulations: Hospice providers must comply with the privacy and security requirements of the Health Insurance Portability and Accountability Act (HIPAA) to protect patient health information.
- State and federal labor laws: Hospice businesses must comply with labor laws related to wages, hours, and working conditions for employees.
a. Who is your Target Audience?
i. Age Range
We will typically provide care for individuals of all ages who are facing serious illnesses or end-of-life issues.
ii. Level of Educational
We will cater to clients of different levels of education.
iii. Income Level
We will work with clients who have the financial capacity to pay for our services.
We will work with clients across all ethnic groups in the United States and beyond.
We will work with all clients irrespective of their language.
vi. Geographical Location
We will work with people within the location where our business is domiciled.
Serenity® Hospice Care will not discriminate against any client based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Content marketing
- Deliberately Brand Our Facility
- Email marketing
- Events and sponsorships
- Pay-per-click (PPC) advertising
- Referral marketing
- Search engine optimization (SEO).
i. Traditional Marketing Strategies
- Broadcast Marketing -Television & Radio Channels.
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Out-of-home (OOH) advertising – Public transit like Buses and Trains, Billboards, Street shows, and Cabs.
- Leverage direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Affiliate Marketing
- Content Marketing.
- Email Marketing.
- Influencer Marketing.
- Mobile Marketing.
- Social Media Marketing Platforms.
- Search Engine Optimization (SEO) Marketing.
iii. Social Media Marketing Plan
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our target market and potential target market.
- Create profiles on relevant social media channels.
- Gear up our profiles with a diverse content strategy.
- Start using chatbots.
- Run cross-channel campaigns.
- Use brand advocates.
c. Pricing Strategy
Serenity® Hospice Care pricing strategy should take into account factors such as the cost of the value of service offering, and the level of competition in the market. We will also analyze the competition’s pricing and services to ensure the business remains competitive while maintaining profitability. Here is our pricing strategy:
- Tiered Pricing
- All-Inclusive Pricing
- Ala Carte Pricing
- Move-In Specials
- Long-Term Contracts
- Medicaid and Medicare Programs
- Private Pay.
Sales and Distribution Plan
a. Sales Channels
Our sales channels will include both direct and indirect channels and they are:
- Direct sales: This involves the hospice business’s sales team directly reaching out to potential clients, such as hospitals and other healthcare-related businesses, through email, phone, or in-person meetings.
- Referral sales: This involves leveraging existing clients, business partners, and other industry contacts to refer potential clients to the hospice business.
- Online sales: This involves using digital channels such as the company’s website, social media, and online advertising to generate leads and attract potential clients.
- Broker or agent channels: This involves working with brokers or agents who act as intermediaries between the hospice business and potential clients, referring clients to the company in exchange for a commission.
- Partner channels: This involves working with strategic partners, such as doctors, hospitals, and other healthcare service providers, to offer factoring services to their clients.
- Industry-specific sales channels: This involves targeting specific industries that may have a higher demand for hospice services
- Trade shows and events: This involves participating in industry trade shows and events to generate leads and build relationships with potential clients.
b. Inventory Strategy
Our inventory strategy will involve managing and tracking the availability of essential supplies such as food, medication, medical equipment, and cleaning products. The strategy will also involve setting levels for inventory, monitoring usage, and ordering supplies in advance to ensure that there are no shortages.
We will also implement software systems to automate inventory management and improve efficiency. Having effective inventory management will help ensure that residents receive high-quality care while reducing waste and minimizing costs for the business.
c. Payment Options for Customers
Here are the payment options that Serenity® Hospice Care will make available to her clients;
- Apple Pay and Google Wallet
- Gift cards and store credit
- Credit and debit cards
- Installment payments
- Cash on service delivery.
d. Return Policy, Incentives, and Guarantees
As a hospice services provider, we do not offer a traditional return policy, incentives, or guarantees.
e. Customer Support Strategy
Providing exceptional customer support is crucial for the success of our hospice business. Here are some customer support strategies that we will adopt:
- Provide multiple communication channels for residents and their families
- Offer personalized attention
- Set clear expectations.
- Maintain transparency.
- Offer value-added services.
The operational plan for our hospice business is a detailed document that outlines the day-to-day operations of the business, including staff responsibilities, resident care plans, facility maintenance, and financial management. The plan typically includes specific goals and objectives, as well as strategies for achieving those goals. It will also address risk management, emergency preparedness, and compliance with regulations and policies.
a. What Happens During a Typical Day at a Hospice Business?
- Provide a range of services to support patients and their families, including medical care, pain management, emotional and spiritual support, and assistance with activities of daily living.
- Administrative tasks (this may include scheduling appointments and visits, maintaining patient records, billing and insurance management, and compliance with state and federal regulations)
- Staff training and development
- Research and innovation.
b. Production Process
There is no production process when it comes to the hospice business.
c. Service Procedure
d. The Supply Chain
A supply chain is not applicable to a hospice business.
e. Sources of Income
At Serenity® Hospice Care we will make money from resident fees, government programs such as Medicaid or Veterans Affairs, and private pay options such as long-term care insurance or personal funds.
a. Amount Needed to Start your Hospice Business?
Serenity® Hospice Care would need an estimate of $360,000 to successfully set up our hospice business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.
b. What are the Cost Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding, and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $5,400.
- Rent/Lease – $150,000.
- Other start-up expenses include 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
- Furnishing and Equipping – $35,000
- Website: $600
- Opening party: $4,000
- Miscellaneous: $5,000
c. Do You Need to Build a Facility? If YES, How Much will it cost?
Serenity® Hospice Care will not build a new facility for our hospice business; we intend to start with a long-term lease and after 5 years, we will start the process of owning (acquiring) our own facility.
d. What are the Ongoing Expenses for Running a Hospice Business?
- Staffing costs (salaries, benefits, and training for caregivers, nurses, and administrative staff)
- Facility expenses (rent, utilities, property taxes, maintenance, and insurance)
- Food and supplies (groceries, medications, medical supplies, personal care items, and cleaning supplies)
- Marketing and advertising
- Administrative expenses (office supplies, legal fees, accounting services, and software or technology systems)
- Resident care expenses (medical equipment, therapy services, and other specialized care needs)
- Compliance expenses.
e. What is the Average Salary of your Staff?
- Head of Hospice (President) – $45,000 Per Annum
- Assisted Living Administrator – $36,034 Per Annum
- Medication Management Counselors – $35,600 Per Annum
- Nurse’s Aides – $30,660 Per Annum
- Caregivers – $32,878 Per Annum
- Account Officer – $35,000 Per Annum
- Front Desk Officer – $28,000 Per Annum
- Cleaners – $22,000 Per Annum
- Security Guard – $22,000 Per Annum.
f. How Do You Get Funding to Start a Hospice 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.
a. How Much Should You Charge for your Service?
Serenity® Hospice Care will charge based on what is obtainable in the United States. Approximately, we will charge $150-200 per day for routine home care, which includes nursing care, social work, chaplaincy, and bereavement services.
b. Sales Forecast?
- First Fiscal Year (FY1): $260,000
- Second Fiscal Year (FY2): $350,000
- Third Fiscal Year (FY3): $420,000
c. Estimated Profit You Will Make a Year?
- First Fiscal Year (FY1) (Profit After Tax): $120,000
- Second Fiscal Year (FY2) (Profit After Tax): $180,000
- Third Fiscal Year (FY3) (Profit After Tax): $290,000
d. Profit Margin of a Hospice Business
The ideal profit margin we hope to make at Serenity® Hospice Care will be between 10 and 20 percent on each job carried out irrespective of the distance covered.
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Serenity® Hospice Care will grow our hospice business by opening other offices in key cities in the United States of America within the first five years of establishing the business.
b. Where do you intend to expand to and why?
Serenity® Hospice Care plans to expand to;
- Atlanta, Georgia
- Charlotte, North Carolina
- Dallas, Texas
- Denver, Colorado
- Minneapolis, Minnesota
- Nashville, Tennessee
- Phoenix, Arizona
- Portland, Oregon
- San Diego, California
- Tampa, Florida.
The reason we intend to expand to this geographic location is the fact that available statistics show that the cities listed above have a growing elderly population and a high demand for senior care services, making them potentially attractive markets for hospice businesses.
Serenity® Hospice Care’s founder intends to exit the business through a merger and acquisition. We want to merge with a global hospice company so that the company’s management can be placed in trusted hands when the founder retires.
The goal of combining two or more international hospice businesses on a global scale is to achieve synergy, in which the whole (the new company) is greater than the sum of its parts (the former two separate entities), and with a well-structured management team and board of trustees.