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Home Health Agency Buyer, Welcome
Two suggestions. Open the yellow pages and look under "home health agencies" and give each a call. Find out if ant are interested in selling.
Place in ad in your local newspaper that you are interested in purchasing.
Good luck. Do you have an Accountant and a Lawyer
LUCKIEST, thanks for your response; yes I have an attorney and accountant. I have pulled the agency directory from both the local resources and the CMS gov website that reports quality data stats for the agencies. I actually tried to obtain a certificate of need through the state regulation board, however I was denied. In Tennessee they require 3 components, one of which is based on 1.5% of the patient population for each county served. Unfortunately, unlike in many states it is not a democratic process of competitve commercial business. I was denied because there are enough agencies in the area to provide the needs of the patient population based on the 1.5% data. However, I was offering a specialty service which was not provided. I am trying a different approach, in addition, I am working with a physician as a consult to provide this service in my community. I have always been a patient advocate in healthcare, and I feel the patients and clients in the community are the ones who are being underserved, despite the 1.5% statistics. The CMS which regulates at a Federal level has recommended a 2.5% patient population base. Despite the fact that Tennessee has a great governor (Phil Bredesen) he will be featured in Esquire magazine this month; the state health plan has not been revised based on Governor Bredesen's recommendations nor federal recommendations at this point. Hopefully, in 2009 this will be completed.
Calling agencies directly will probably yield very little results - even if the owner would/is considering selling they probably will not respond to a cold call because of confidentiality fears.
Be careful working with a physician especially if you plan on receiving business from them in the future you do not want to violate any Stark referral laws.
Tennessee is a tough place to buy a HHA becasue of the CON requirements. It has pushed pricing up a little higher than in other areas.
Having an accountant an attorney is fine but typically neither specialize in purchasing companies.
I would suggest you work with a business broker who specializes in healthcare and can give you competent advice throughout the deal process.
Best of Luck,
Founder, Bridge Ventures
Great advice Greg; you are correct, I appreciate the advice, especially regarding the physician and conflict of interest with referrals. Trish
Glad I could be of assistance. Is the answer was useful, please mark as either "correct" or helpful" (top of the initial posting).
As I thought through things further, several options came to mind:
1) Buy an existing agency (very possible - lots out there). Since the cost reimbursed payment system disappeared years ago and prospective pay has been around long enough, an acquisition is financiable and you may be able to get a SBA guaranteed loan with 20% down.
2) Start a Private Duty Agency and move ito Medicare later. You do not need a CON for Private Duty do you?
Just curious, were you going to focus on skilled nursing, therapies, or aides?