entrepreneurial opportunities long term healthcare industry

7/29/2019 Entrepreneurial Opportunities Long Term Healthcare Industry

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Entrepreneurial

Opportunities

Long Term Healthcare Industry

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Agenda

Introductions

Objectives

Presentation

Q&A

Wrap Up

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OBJECTIVES

Participants will be provided informationregarding:

Services provided in the long term care industry Basic market information

Government Role in the Long Term Care Industry

Elements of Business Start up

Benefits & Risks

Available Resources

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SCOPE OF BUSINESS ACTIVITIES

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Home Care

Form of health care service provided in the patients

home or assisted living facility

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Adult Day Care

Includes programs, services, and facilities designed to

assist physically or mentally impaired adults remain

with family or in their own home

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Assisted Living

Alternative to traditional institutional living (i.e.

nursing home), such as Adult Foster Care and Homes

for the Aged where individuals live independently,receiving support services such as:

24-hour supervision,

housekeeping and meal preparation,

assistance with activities of daily living transportation services

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Nursing Homes

A residential facility that provides long term

care for the elderly and chronically ill adults,

who are unable to care for themselves

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Hospice Care

Supporting care for terminally ill patients.

Hospice programs provide palliative (care that

relieves discomfort but does not improve thepatients condition or cure the disease) patient-

centered care and other services

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Transportation

Long term care patients often require

transportation for medical appointments (i.e.

doctor visits, tests, treatments) Transportation charges are affordable and

generally paid by the requestor

Medicare does pay for transportation formedical services, for eligible patients

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MARKET ANALYSIS

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Market Growth Factors

Extended life due to medical advances

Baby boomers

Growth in non-elderly recipients of LT Care

Adults with Mental IllnessAdults with Chronic Illness

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Market Trends

Stable industry

Government payment of LT Care services

Highly regulated industry

Quality of care standards increasing

Excess occupancy in local nursing facilities15


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Key Success Factors

Right-size your business

Quality service

Properly trained staff

Strategic partnerships and alliances

Understand government policy and regulations16


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GOVERNMENT ROLE IN

LONG TERM CARE

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Medicare vs. Medicaid Coverage

Medicare Medicaid

Insurance Program Government Assistance Program

Eligibility based on age (


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Medicaid Reimbursement

Medicaid accounts for nearly 50% of Long Term

Care payments in Michigan

Nursing care facilities receive the largest portion of

Medicaid reimbursements

Nursing care facilities may be reimbursed for costs

associated with capital asset ownership

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BUSINESS START UP

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For Profit Business

In business to make a profit

Must pay income taxes on profit

Reinvest profit and/or pay yourself a dividend

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For Profit Business

Capital Resources

Personal cash resources

Private investors

Personal or institutional financing

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Non Profit Business

Business is exempt from income tax

No profit for business owner, cash surplus

must be used for regular business expenses

Strict accounting and reporting requirements

for grant funds

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Non Profit Business

Capital Resources

Personal cash resources

Private investors

Personal or institutional financing

Grant funding and charitable contributions

Low interest government loans

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BENEFITS & RISKS

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Benefits

Self-employed

You are your own boss

Tax benefit

Continuous Market Growth

Aging population

Non-elderly adults with chronic physical ormental illness

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Benefits

Multiple revenue sources

Private Insurance

Medicaid reimbursement (for qualified services) Medicare reimbursement (for qualified services)

Grant funding (for non profit businesses)

Private Pay

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Risks

Operational Riskis the risk of loss resulting

from inadequate or failed internal processes,

people or systems, or other external eventsTo reduce operational risk, ensure that you havean adequately trained staff and necessary systems

and processes to deliver services

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Risks

Financial Riskis the risk that a company will

not have adequate cashflow to meet financial

obligationsTo reduce financial risk, maintain good creditworthiness and manage cashflow and liquidity

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Q&A

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RESOURCES

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Resources

Resource Purpose Location

Description

State of Michigan This webpage provides resources for https://www.michigan.gov/miseniors/0,1607,7-

Webpage additional information on opening an 234-47798-179046--F,00.html

Adult Day Care Service.State of Michigan This webpage provides information http://www.michigan.gov/mdch/0,1607,7-132-

Webpage and requirements for opening a 27417_27655_27662-91668--,00.htmlNursing Home Facility

Checklist for finding Evaluation of resident expectations http://www.hcam.ort/THECONSUMERGUID

a nursing home E/UseThisChecklist/tabid/1582/Default.aspx

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Resources


Description

Medicaid Provider Detailed description of Medicaid

Manual eligibility, reimbursement and other

requirements for:* Home Care

* Nursing Homes

* Hospice Care

http://www.michigan.gov/mdch/0,1607,7-132-

2945_5100-87572--,00.html

Michigan Adult Day Provides resources for providers and www.mimadsa.org

Care Services others involved in the industry.

Association

Adult Foster Care To apply for a license to open an http://www.michigan.gov/documents/dhs/BCAFamily Home Adult Foster Care Home L-047_211766_7.pdf

Application

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Resources


Description

AFC and Homes for

the Aged Licensing &

RequirementsInformation

This State of Michigan website

provides licensing requirements,

forms, training, resources, rules &statutes and other information related

to AFC Homes

http://www.michigan.gov/dhs/0,1607,7-124-

5455_27716_27717---,00.html

Report from State of The report provides an analysis of http://www.michigan.gov/documents/miseniors

Michigan Office of transportation services for Michigans /Transportation05_175052_7.pdf

Services to the Aging elderly population

SBA Website Programs and services to help you http://www.sba.gov

start a business

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entrepreneurial opportunities long term healthcare industry

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