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.
- 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;
- Drip Doctors
- Liquivida Lounge
- ThrIVe Drip Spa
- 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
- 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?
- 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
- 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.
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.
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)
- Home Infusion Therapy Nurse
- Account Officer
- Front Desk Officer
a. SWOT Analysis
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.
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.
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.
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.
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.
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.