hospice agency business plan

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A Sample Hospice Agency Business Plan Template

A hospice agency is a public agency or private organization or a subdivision of either that is engaged in providing care to terminally ill individuals, and has a valid Medicare provider agreement. Statistics have it that in the United States of America alone, there are about 3,575 licensed and registered hospices & palliative care centers responsible for employing about 358,119 employees.

The industry rakes in a whooping sum of $24 billion annually with an annual growth rate projected at -0.2 percent between 2016 and 2022.

Steps on How to Write a Hospice Agency Business Plan

Executive summary.

Life Line® Hospice Agency, Inc. is a licensed and registered hospices & palliative care center that will be based in Palm Beach Gardens, Florida. The organization will be committed to serving those who are down with life-terminating illnesses and diseases.

We will house between 10 to 20 terminally ill patients per time in a family setting. We are going to be health-conscious and customer-centric with a service culture that will be deeply rooted in the fabric of our organizational structure. Paul Winston is the founder and CEO of Life Line® Hospice Agency, Inc.

Company Profile

A. our products and services.

Life Line® Hospice Agency, Inc. will provide a wide range of services that revolve around offering symptom relief and pain management for patients with life-terminating illnesses and diseases. Hospice palliative care is provided to individuals with serious, complex illnesses who may or may not be expected to recover fully.

b. Nature of the Business

Our hospice agency will operate as a nonprofit organization, we will source finance from donor organizations, private individuals, and relevant government agencies. But in some cases, we will charge residents or their family members for the services rendered, howbeit, we are designed not to make a profit.

c. The Industry

Life Line® Hospice Agency, Inc. will operate under the Hospices & Palliative Care Centers industry.

d. Mission Statement

Our mission is to provide safe and secured hospice services geared towards taking care of terminally ill people and making them live with the expectation and hope of recovering.

e. Vision Statement

Our vision of establishing our hospice agency is to become the pacesetter in every city where we are located .

f. Our Tagline (Slogan)

Life Line® Hospice Agency, Inc. – Living Life One Day at a Time!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Life Line® Hospice Agency, Inc. will be formed as a nonprofit corporation at the state level and we will apply for 501(c)(3) tax exemption at the federal level.

h. Our Organizational Structure

• Founder (President)
• House Manager (Administrator)
• Nurse’s Aides
• Caregivers/Social Worker
• Account Officer
• Front Desk Officer
• Security Guards

i. Ownership/Shareholder Structure and Board Members

A nonprofit corporation has no owners (shareholders) whatsoever. Nonprofit corporations do not declare shares of stock when established. In fact, some states refer to nonprofit corporations as non-stock corporations.

SWOT Analysis

A. strength.

• Ideal Location for a hospice agency
• Highly Experienced and Qualified Employees and Management
• Access to Pool of Donor Organizations
• Highly Secured and Clean Facility
• Highly structured programs that are aimed at helping terminally ill people live comfortably as though they are with their families.

b. Weakness

• Inability to initially manage the organization without the support of donations and grants
• Financial Limitations
• Operating from a leased facility (restriction to fully modify the facility to suit our style and taste)
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• The aging population in the United States is growing hence providing opportunities for the hospice industry.
• Government funding for Medicare and Medicaid and private donations are anticipated to increase support for hospice agencies.
• The hospices & palliative care centers industry is projected to reverse its decline trend and increase in the coming years.
• Pool of finance from donor organizations, individuals, and relevant government agencies et al.

i. How Big is the Industry?

The hospices & palliative care centers industry is worth over $24 billion in the United States hence it is safe to say that the industry is big.

ii. Is the Industry Growing or Declining?

It is important to state that available statistics point to the fact that the industry is presently not growing and revenue for the industry has been adjusted from an increase to a decline. This is so because the COVID-19 (coronavirus) pandemic has limited the Hospices and Palliative Care Centers industry’s ability to perform hospice care services due to the risk of spreading the virus.

Since many operators are nonprofit, hospice agencies rely on federal funding and private donations. Since unemployment and consumer spending is anticipated to decline in 2020, leading to fewer donations, profit is set to decline.

Please note that in the coming year (2022), the revenue of the industry is anticipated to decline slightly, but as the economy recovers and COVID-19 (coronavirus) cases drop in line with the nationwide vaccination rollout, industry revenue will likely increase.

iii. What are the Future Trends in the Industry

The Hospices & Palliative Care Centers industry is changing, and players in the industry are improvising. No doubt, technology, and customized software will change the landscape of the Hospices & Palliative Care Centers industry going forward.

iv. Are There Existing Niches in the Industry?

No, there are no niche ideas when it comes to the hospice agency line of business . This is because elderly care group home is a niche idea in the Hospices & Palliative Care Centers industry.

v. Can You Sell a Franchise of your Business in the Future?

Life Line® Hospice Agency, Inc. has plans to sell franchises in the nearest future and we will target major cities with a growing elderly population.

• The spread of coronavirus and similar pandemic
• Lack of support from stakeholders and the government
• Unfavorable government policy and regulations.
• Community resistance (May does not want such facility to be located in their community)
• Liability problems
• The arrival of competitors within our market space.

i. Who are the Major Competitors?

• Vitas Healthcare Corporation
• Humana Inc.
• Top Care Hospice Inc
• Intrepid USA Healthcare Services
• Ocls Intrepid USA
• MSA | Medical Services of America Home Health & Hospice
• Center To Advance Palliative Care
• Center for Hospice Care
• Caring Connections.
• The National Hospice and Palliative Care Organization
• Compassion and Choices
• Hospice Foundation of America
• Zen Hospices Care Center

ii. Is There a Franchise for Group Home?

No, there is no known hospice agency franchise currently.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Hospice Agencies?

Yes, there are county and state regulations or zoning laws for hospice agencies. The law in the United States and some countries states that before a non–medical home care facility such as a hospice agency can commence operations, there should be at least six residents and at least one trained caregiver there 24 hours a day and 7 days a week.

So also, a standard hospice agency is expected to have a house manager, night manager, weekend activity coordinator, and 2 or more caregivers depending on the size of the facility.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market is for people of any age because those who need the services of a hospice are those who are down with life-terminating illnesses and diseases and they can fall under any age group.

ii. Level of Educational

We don’t have any restriction on the level of education of those we are ready to accommodate in our hospice agency.

iii. Income Level

We don’t have any cap on the income level of those we are looking to accommodate in our hospice agency.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will welcome to our hospice.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome in our hospice, but we will prefer people that speak English and Spanish.

vi. Geographical Location

Anybody from any geographical location will be welcomed in our hospice agency.

vii. Lifestyle

Life Line® Hospice Agency, Inc. will not restrict any terminally ill person from accessing our facility and services based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Host Themed Events That Catch the Attention of Elderly People.
• Tap Into Text Marketing.
• Share Your Events in Local Groups and Pages.
• Turn Your Social Media Channels into a Resource
• Develop Your Business Directory Profiles
• Build Relationships with Other Nonprofits and related organizations in our Area

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral, radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our housemates.
• Create an efficient content marketing strategy.
• Create a community for our donors and volunteers.
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on the relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Life Line® Hospice Agency, Inc. will make sure it covers upkeep, medications, premium, economy or value, and full hospice and palliative care package. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties—such as referral partners, affiliate partners, hospitals, religious organizations, nonprofit organizations, and charity to help refer terminally ill people to us.

Life Line® Hospice Agency, Inc. will also leverage the 4 Ps of marketing which are place, price, product, and promotion. By carefully integrating all these marketing strategies into a marketing mix, we can have a visible, in-demand service that is competitively priced.

b. Inventory Strategy

The fact that we will need toiletries, medications, change of beddings, and foodstuffs per time means that Life Line® Hospice Agency, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our warehouse.

We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business. Life Line® Hospice Agency, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible.)

c. Payment Options for Customers

Here are the payment options that Life Line® Hospice Agency, Inc. will make available to her donors and contributors;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

d. Return Policy, Incentives, and Guarantees

At Life Line® Hospice Agency, Inc., the nature of services we offer does not accommodate return policy, and incentives, but we will guarantee our housemates that their lives will be comfortable if they follow our program.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to all our housemates and donors, it will help us to understand their needs, experiences, and pain points. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting grants that will enable us to boost our service offerings and support revenue growth.

a. What Happens During a Typical Day at a Hospice Agency?

• The facility is open for the day
• The facility is cleaned and prepared for the day’s activities
• Housemates are prepped for the day
• Housemates are provided with programs that will help them live beyond their pains.
• House chores are carried out at different intervals during the day
• Administrative works are done
• The facility is closed for the day and housemates go to bed.

b. Production Process

There is no production process when it comes to a hospice agency.

c. Service Procedure

There is no service procedure when it comes to a hospice agency.

d. The Supply Chain

Life Line® Hospice Agency, Inc. will rely on social workers, counselors, religious organizations, and government agencies in our city to refer terminally ill people to us. We have also been able to establish business relationships with wholesale suppliers of beddings, toiletries, medications foodstuffs et al.

e. Sources of Income

Life Line® Hospice Agency, Inc. make money from;

• Contributions from partners and donors
• Grants from government agencies and charity organizations
• Community support.

The cost to live in our hospice agency facility varies and it will range from about $100 to over $2,000 per month.

Financial Plan

A. amount needed to start our hospice agency.

Life Line® Hospice Agency, Inc. would need an estimate of $450,000 to successfully set up our hospice agency 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 Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $7,300.
• Marketing, Branding and Promotions – $5,000.
• Business Consultant Fee – $2,500.
• Insurance – $5,400.
• Rent/Lease – $200,000.
• 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) – $40,000
• start-up inventory – $15,000
• Store Equipment (cash register, security, ventilation, signage) – $4,750
• Furnishing and Equipping – $120,000
• Website: $600
• Miscellaneous: $2,000

c. Do You Need to Build a Facility?

Life Line® Hospice Agency, Inc. will not build a new facility for our hospice agency; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Group Home?

• Cost of stocking up supplies such as beddings, medications, toiletries, and beddings et al
• Cost of food supplies and ingredients
• Utility bills (gas, internet, phone bills, signage and sewage et al)
• Salaries of employees

e. What is the Average Salary of your Staff?

• Head of Group Home (President) – $45,000 Per Annum
• House Manager (Administrator) – $36,034 Per Annum
• Nurse’s Aides – $29,660 Per Annum
• Caregivers/Rehab Counselors – $32,878 Per Annum
• Fundraiser – $36,500 Per Annum and based on target
• 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 Agency?

• Raising money from personal savings and sale of personal stocks and properties
• Applying for a loan from your bank/banks
• Pitching our business idea and applying for business grants and seed funding from, the government, and donor organizations
• Source for soft loans from our family members and our friends.

Financial Projection

A. how much should you charge for your service.

At Life Line® Hospice Agency, Inc. it is important to note that we will make our facility free of charge since we hope to attract enough grants and funds from donors.

b. Sales Forecast?

• First Fiscal Year (FY1): $250,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $450,000

c. Estimated Profit You Will Make a Year?

Life Line® Hospice Agency, Inc. will operate as a nonprofit organization.

d. Profit Margin of a Hospice Agency Product/Service

Life Line® Hospice Agency, Inc. is designed not to make profits hence we don’t have a profit margin for our services.

Growth Plan

A. how do you intend to grow and expand.

Life Line® Hospice Agency, Inc. will grow our hospice agency by first opening other facilities in key cities in the United States of America within the first five years of establishing the organization and then will start selling franchises from the sixth year.

b. Where do you intend to expand to and why? (Geographical Locations)

Life Line® Hospice Agency, Inc. plan to expand to first to Sumter – Florida, and then to Liliano – Texas, Lancaster – Virginia, Alcona – Michigan, and Catron New Mexico. The reason we intend to expand to these locations is that available statistics show that the cities listed above have the highest number of elderly people in the United States.

The founder of Life Line® Hospice Agency, Inc. plans to exit the business via merger and acquisition. We intend to merge with an international charity organization that has a world spread so that the management of the organization can be placed under a trusted hand when the founder retires.

More on Hospice Agency

How to Start a Hospice Business in 6 Steps: The Complete Guide

Table of Contents

• Introduction

Create a business plan

Decide on your business model, choose a legal entity, market your services, focus on hipaa compliance.

• Use hospice management software

It’s no secret that the older population in the United States is growing. In 2019, people over 65 made up 16 percent of the population. In 2040, that segment is projected to jump to 21.6 percent. 

At the same time, the incidences of cancer, dementia, cardiovascular disease, and kidney disease in America’s geriatric population are rising. Both of these trends are affecting the U.S. hospice market.

So what exactly is a hospice business, and why is it so important today?

Hospice care, a healthcare model that focuses on compassion and comfort, becomes vital when curative care is no longer feasible for terminally ill patients. Typically, hospice care is recommended for those with a life expectancy of six months or less, as determined by their medical team. Unlike traditional healthcare, the hospice approach focuses on alleviating pain, providing emotional support, and ensuring comfort during the patient’s final stages of life. This care extends beyond the patient, offering crucial support to their loved ones during this challenging time.

Hospice care is paid for primarily by Medicare, Medicaid, and health insurance. It’s similar to palliative care in that both disciplines focus on comfort rather than cures.

There is a primary difference in the application and costs of palliative care vs hospice care, however: Palliative care can be provided at any stage of an illness — not just when the patient has a prognosis of six months or less — and is typically paid for by the patient or their insurance plan.

Hospice care takes place wherever the patient is, including at the patient’s home, a hospital, or an assisted living facility. Many assisted living facilities provide residential and custodial services, and hospice caregivers collaborate with those caregiving teams to offer psychological and physical end-of-life services. Hospice in assisted living is a helpful option for many seniors and their families.

Hospice care provides compassion, safety, and dignity to those at the end of their lives. For many practitioners, it’s both a labor of love and a profitable business venture. In fact, the U.S. hospice care market was valued at $32.1 billion in 2021 and is forecasted to grow at a compound annual growth rate of 8.2 percent until 2030.

Launching a hospice business demands a robust business plan, sufficient capital, and appropriate licenses. However, the journey involves more than just these essentials. You’ll also need an understanding of the industry’s regulatory environment, a willingness to address the unique emotional challenges of hospice care, and a commitment to a long-term vision.

This comprehensive guide will teach you how to start a hospice business from the ground up.

Chapter synopsis

• Create a business plan. What special considerations should you take into account when developing a hospice business plan?
• Decide on your business model. To franchise or not to franchise — that’s the question. Learn the pros and cons of starting a hospice from scratch versus opening a franchise.
• Choose a legal entity. Do you know the difference between a sole proprietorship and an LLC? Is a C corp better than an S corp? Learn what legal entity is best for you.
• Market your services. Learn different in-person and digital marketing strategies that can help your hospice business attract its target audience.
• Focus on HIPAA compliance. When running a hospice business, following regulations that help with HIPAA compliance can be tricky. Learn some tips in this chapter.
• Use hospice management software to run your business. With the right tools, you can streamline processes and improve your quality of care. Jotform is an excellent hospice management solution.

Ready to learn how to start a hospice business? Let’s head to the next chapter and discuss the key elements of a hospice business plan.

As with any business, you must have a solid business plan before you begin. This strategic document is not only required to acquire funding and obtain licensing, but it can also help you figure out essential details well before opening your business — such as the size of your target market or the importance of patient surveys.

While a business plan consists of many different components, this chapter focuses on key aspects that require special attention when opening a hospice.

Understand the regulatory and legal requirements for your area

An important part of your hospice startup checklist is researching any regulatory and legal requirements for the business. For example, as all companies do, you must apply for a Tax ID and EIN . However, there are also hospice-specific requirements, such as a state licensing application and a federal Medicare accreditation application. 

While many hospices are Medicare-certified agencies, you can also be a non-Medicare home agency in some states and serve private clients if that business model works better for you. There are different licensing requirements if you go this route.

Remember that the requirements differ from state to state, so it’s important to look at your specific location. For example, in California , you can choose between starting a home healthcare agency and a hospice care agency, which are similar but with a few key operating differences. 

In Florida, hospice care businesses need a certificate of need from the Agency for Health Care Administration. It’s best to stay up to date on the licensing requirements for your state, as they may change from time to time.

Also consider where your hospice business will provide care. Will you work at a patient’s home, hospital, assisted living facility, or multiple locations? Whether you provide hospice care at home or a hospital depends on your target market and their needs. Depending on your choice, specific licenses may be required for your state, so you need to make this decision during the business plan phase.

Wondering how to get a hospice license ? Applying for specific licenses, certificates, and accreditations can be a complex and time-consuming process, so it’s best to start it well in advance of opening your business.

Many business owners use third-party hospice consultants who help them navigate the regulatory and legal process of opening a hospice business. These services ensure you have the correct licenses and accreditations so you don’t run into any regulatory issues at opening or going forward.

Know your target market

Projecting the success of a hospice business is a vital part of the business plan. To do this, you need to know the size of your target market.

Those who qualify for hospice care are terminally ill and have been given a life expectancy of six months or less. However, a medical doctor decides whether a patient requires hospice care, not the patient or a hospice business owner. A hospice business can only provide care to a patient when the medical authority has approved it.

Look at the demographics in your area to determine how many people are in a geriatric age group. This is only a starting point for learning the size of your target market. A small percentage of that demographic will require hospice care. To determine the percentage, you may need to make educated guesses based on hospice market projections for your area. Speaking to medical professionals who frequently refer patients to hospice care may provide additional insight.

Remember that while a hospice business provides services to patients, you won’t market solely to them. Since a medical professional needs to refer a patient to a hospice facility, consider them as part of your target market and have a separate marketing strategy for them. You also need to plan how to market to the patient’s family.

Calculate your expenses

How much does it cost to start a hospice company?

Starting a hospice business involves substantial financial investment. Costs vary according to the location and scale of the business. Initial expenses typically range from the lower to mid-hundreds of thousands. This includes costs for licensing, equipment, and space, as well as operational costs like payroll and marketing. For a more accurate estimate of costs, consult financial projections specific to your region and consider both startup and ongoing expenses. Detailed financial planning, including understanding potential revenue streams and profit margins, is crucial to the long-term success of your hospice business.

In addition, hospices tend to have ongoing monthly operating costs in the low to mid hundreds of thousands. As a result, you’ll need considerable capital to open a hospice business — the startup costs plus enough to cover a couple of months of operating expenses.

Startup costs can include

• Licenses and accreditations
• Commercial operating space
• Medical equipment
• Computer hardware and software

Operating costs can include

• Continuing education

The types of expenses may vary based on where you provide care. At-home hospice care costs will be different than assisted living facility hospice care. A hospice consultant can help you determine your startup and operating costs.

Plan to mitigate deficiencies in operating plans

To ensure a high quality of care, state agencies or accrediting organizations regularly review hospice sites to determine whether there are any deficiencies . 

In fact, according to the U.S. Department of Health and Human Services, almost all hospices that provided care to Medicare patients were reviewed onsite, and 80 percent had at least one deficiency. Common deficiencies include poor care planning, poor management of aide services, and inadequate quality control, all of which can affect the quality of care.

To run a successful hospice business, familiarize yourself with the top hospice deficiencies and how to avoid them . Providing better service to patients leads to a better reputation among patients, their families, and medical professionals. In turn, this can lead to increased referrals from doctors. In your hospice business plan, be sure to include details on how you will operate the business and how you will ensure quality care for patients.

Prepare for feedback

The Centers for Medicare & Medicaid Services (CMS) uncovers hospice deficiencies by surveying the families of patients who have passed away under hospice care. The Consumer Assessment of Healthcare Providers and Systems (CAHPS) Hospice Survey is conducted by CMS-approved survey vendors, allowing families to share feedback about their hospice experience.

The data collected through these surveys helps other families choose which hospice to use for their terminally ill family member. To ensure your business does well on these surveys, learn how to prepare for hospice accreditation surveys.

Have detailed operating procedures in place so that every patient gets the highest quality of care. In your business plan, remember to include details about the standards of care you’ll offer patients and their families.

Now that we’ve covered key aspects of creating a hospice business plan, it’s time to review your business model. Will you start a hospice business from scratch or take the franchising route?

The business plan and the business model work hand in hand. Sometimes, business owners determine the business model first, then write a business plan. In other cases, they need to do it the other way around. Regardless of which you do first, you must decide how your hospice business will create value and make money.

In the hospice industry, there are two main business models to choose from — starting from scratch (independent) or franchising. Each option has benefits and drawbacks. We’ll cover them in this chapter.

Starting from scratch

An independent hospice business is one you start from scratch. This business model’s most significant advantage is that the owner has complete control over business decisions. They don’t need to answer to a corporation or franchise entity. Plus, the owner can pivot their business strategy at any time.

Starting from scratch also allows the company to develop its own brand, which will help it stand out from cookie-cutter franchises in the market. However, building a brand from the ground up takes considerable time. With this model, there is no built-in brand recognition like there is with a franchise.

While starting any business comes with some risk, creating a hospice business from scratch can be especially risky. The healthcare sector is complex, and an organization that doesn’t have its licensing or accreditation in order can be closed down.

Starting from scratch also comes with higher investment costs because you don’t have immediate access to helpful resources — like marketing collateral or talent — that often come with franchising. This business model also has fewer economies of scale, so a business owner has higher operating costs and a lower profit margin.

Day-to-day operations can be challenging if taking the non-franchise route, especially in the first few months after opening the business. There is no built-in franchise operating handbook or training manual for staff, so the business owner needs to figure out all these details and ensure everything is well documented.

Being an independent owner is ideal for those who have an entrepreneurial spirit and are interested in building their brand. You don’t need any medical experience or a background in the healthcare industry as long as you’re willing to learn and gain knowledge from experts in the area. However, being business savvy is vital to succeeding in this business model.

Franchising

For many business owners, franchising comes with the promise of financial stability. However, that doesn’t mean a considerable investment isn’t involved. While the initial startup costs may be lower compared to starting a business from scratch, as part of a franchise, you may need to pay a percentage of monthly revenues to the franchise on an ongoing basis.

The major benefit of working within a franchise model is that it comes with access to operational resources, such as corporate support, supplier networks, marketing resources, and human resources. In addition, franchises have operational expertise in the industry. Even if you don’t have hospice experience, you can rely on the franchise to provide it via training, onboarding, operating manuals, and more.

Keep in mind that with a franchise, a business owner has much less control over certain decisions, such as branding and marketing, hours of operation, location, décor, etc. However, it does come with brand recognition and publicity.

After reviewing these two business models, it’s time to look at how to choose a proper legal entity for your hospice business. We’ll cover that in the next chapter.

The business structure , or type of legal entity, you choose for your hospice business will affect how much you pay in taxes, the extent of your personal liability, and what kind of paperwork you need to file to get up and running. It also affects whether you can raise money for your business if you need an influx of capital.

When starting a hospice business, you’ll need to select your legal entity in order to register your business with the state and get a tax ID number. This is an important step because it’s not always simple to change the legal entity later — so be sure to think ahead for the long term.

Sole proprietorship

The simplest business entity is the sole proprietorship, which makes no legal differentiation between the business and the business owner. This means that the assets and liabilities of your business aren’t separated from your personal assets and liabilities. If the business goes into debt, for example, this would affect your personal finances.

While a sole proprietorship is simple to set up and requires minimal paperwork, keep in mind that sole proprietors can’t sell stock to raise money, which limits the amount of capital available for the business. In terms of taxes, the sole proprietor pays taxes on income from the business as part of their personal tax return.

A general partnership legal entity is similar to a sole proprietorship; however, it’s for businesses owned by two or more people.

Limited liability company (LLC)

If you set up a limited liability company, your personal assets and liabilities will remain separate from those of the business. This is a major advantage for business owners because their personal assets — such as their home or car — won’t be affected if the business fails. Essentially, an LLC combines some of the characteristics of a corporation with those of a sole proprietorship.

As the owner of a hospice business that’s an LLC, you won’t be required to create a board of directors like a corporation, but you will be able to take the company public in the future if you want to convert it to a C corp or S corp (see below). Remember that if you have an LLC, you are considered self-employed and must pay self-employment taxes for Social Security and Medicare.

Limited and limited liability partnerships (LP and LLP)

Partnership legal entities are a good choice for two or more business owners who want to run a hospice together. One partner has unlimited liability in a limited partnership, while the other partners have limited liability. In a limited liability partnership, each partner has limited liability. The entity you choose may depend on your partners and the extent of their involvement in the business.

C corporation

A corporation is an entirely separate legal entity from the business owner. The corporation can be taxed, held liable, and make profits.

Corporations are complicated to set up and maintain in terms of record keeping and reporting, but they offer the best protection for personal liability. Keep in mind that a corporation requires a board of directors to operate and must also have shareholders.

When it comes to taxes, corporations pay income tax on their profits. Shareholders may also pay tax on any dividends on their personal tax return, which is a type of double taxation.

Corporations may also issue stocks to raise funds.

S corporation

An S corporation is a type of corporation where business owners can avoid the double taxation that happens with C corps. In an S corp, the profits can be passed to the owner’s personal income, bypassing corporate tax rates. Keep in mind that not all states tax S corporations the same way, so it’s important to check whether there are any limits or special rules for your state.

We’ve covered the different legal entities you can choose for your hospice business. Next up, it’s time to learn how to market your services.

To build your business, you’ll need to develop a comprehensive marketing strategy that resonates with your unique audience. Effective marketing for a hospice business involves a mix of traditional and digital methods to reach two key segments: terminally ill patients and their families, and referring medical professionals. Consider adopting strategies like community outreach, in-person networking, online content creation, and social media marketing. Communicate compassionately and clearly, highlighting the specialized care and support your hospice provides. Remember, your marketing efforts should not only attract new clients, but also help you build a trustworthy reputation in the community.

This chapter has everything you need to know about marketing a hospice program , including strategies you might want to include in your hospice business development plan.

How to market your hospice program effectively

When marketing a hospice business, it’s essential to use both in-person and digital marketing. You’ll need to reach two key audience segments — 1) terminally ill patients and their families and 2) referring medical professionals. Communicating with these groups via multiple marketing methods is best to ensure they learn about your business.

In-person marketing

A critical component of in-person marketing is networking .

Most hospice patients and their families first hear about local hospices from their doctor, so it’s important to have a good relationship with local medical professionals.

If you’re wondering how to get hospice referrals from doctors, start by researching medical professionals dealing with terminally ill patients in your area. Attend local medical conferences to get to know more medical professionals, and send out hospice information marketing materials to inform doctors about your services.

Community outreach programs are also a great way to market your hospice services to the people in your area. Partner with existing community outreach programs or start your own to support people in need and educate them about what hospice is and how it can help terminally ill patients and their families.

Remember to go where your target audience is — senior centers and assisted living facilities are good examples. Ask if you can leave behind some informational pamphlets.

Regardless of your in-person marketing methods, it’s important to craft the message carefully. Considering hospice care is difficult for patients and their families, and pushy sales tactics won’t help in such stressful and emotional situations. The message should focus on ways your hospice can alleviate pain and suffering for the patient and their family while making their last few months as comfortable as possible.

Digital marketing

To complement your in-person marketing methods, it’s vital to have a robust digital presence. Terminally ill patients and their families will likely search online to learn about their options before deciding which hospice to choose. Even if a doctor has recommended a specific hospice, the family will probably want to research it — and look for reviews — online.

Create a robust website that offers information about your services and the quality of care you provide. Be sure to include testimonials from family members of patients who have stayed at your hospice.

In addition, use search engine optimization to help people find your website. Include key search phrases strategically in the content. You can also use search engine marketing to target people searching for hospice-related terms online.

Other great digital marketing tools include social media, blogs, and email newsletters. Use these avenues to make connections online and share information about your business. Remember that photographs and videos perform well online, so show people what the facility looks like, and the kind of service people can expect. You can even include interviews with staff or family members of patients in the photos and videos.

Regardless of which marketing tactics you use, be sure to measure your performance with key performance indicators (commonly referred to as KPIs). For example, how much has your hospice revenue increased since you started your new marketing campaign?

To grow the business, you’ll need to adjust your marketing over time and periodically evaluate how well it’s drawing in new patients ( i.e., increasing the hospice census ). Try different marketing methods till you find a combination of strategies that work well for your business. You may need to test certain messaging and mediums to see what affects performance the most.

Now that we’ve covered how to market your hospice business, it’s time to move on to another important topic — HIPAA compliance.

In a hospice setting, there’s often a need to share confidential medical information with various people. For example, in an interdisciplinary group, medical professionals will discuss care for the patient with their team members. In addition, hospice may want to include patient stories in marketing materials.

Information sharing of any kind involving a patient requires special oversight. In this chapter, we look at the rule governing information-sharing and the actions you’ll need to take as a hospice owner to comply.

What is HIPAA, and why does compliance matter?

The Health Insurance Portability and Accountability Act , commonly referred to as HIPAA, is a federal U.S. law designed to protect patients’ health-related information from being shared with anyone without the patient’s consent and knowledge.

Hospice workers contact many people daily — family members of the patient, medical professionals, funeral home staff, and more — who may request patient information. Knowing what information can be shared, with whom, and when is important. Violating HIPAA regulations could cause financial harm to the business and negatively affect its reputation.

Strategies for maintaining HIPAA compliance

Maintaining HIPAA compliance is a critical and complex aspect of running a hospice business. A hospice setting brings specific challenges, such as when patients are unable to provide consent to share health information. You need to have rigorous protocols and staff training in place to navigate these complexities. 

Consider incorporating detailed scenarios in your training programs to prepare staff for various situations they may encounter. Additionally, ensure all marketing materials and patient stories are used with proper consent, aligning with HIPAA regulations to protect patient privacy. 

Here are some strategies to ensure all hospice workers in your business meet HIPAA compliance regulations.

Ensure proper training for hospice employees and volunteers

HIPAA compliance training should be a part of the onboarding process for all employees. Remember that volunteers are considered part of the hospice workforce under HIPAA privacy rules, which means they require the same HIPAA training as paid employees. It’s also good to provide frequent refresher training about HIPAA rules to ensure everyone keeps the regulations in mind.

Carefully review permissions for marketing content and images

Many hospice businesses use patient and family testimonials and images as part of their marketing and fundraising efforts. Remember that the patient must provide written consent before you can use any of those materials. This also applies to memorials after the patient has passed. Have a process in place to acquire consent for sharing information when a patient arrives at the hospice.

Follow protocols for IDG meetings

In hospice, one of the most critical components is the interdisciplinary group (IDG) meeting, where a team gathers to discuss the patient’s care plan. The team can include medical professionals, social workers, religious personnel, and more.

During this meeting, all decisions must be appropriately documented to comply with HIPAA rules and Medicare hospice regulations . Use a hospice IDG meeting template to streamline the meeting process and meet compliance regulations.

Use proper hospice documentation tools

When selecting hospice documentation tools , it’s best to ensure they are HIPAA-friendly so that any patient’s personal health information remains private.

Jotform provides features that help with HIPAA compliance on Gold and Enterprise plans and offers many HIPAA-friendly hospice form templates that are secure and easy to use. Each template is customizable, so you can simply drag and drop fields to create a form that works perfectly for your needs. Templates include palliative care assessment forms, patient supply order forms, hospice patient satisfaction forms, and more.

Now that you’re up to speed on HIPAA compliance, it’s time to look at hospice management software. In the next chapter, we show you how Jotform can fulfill your many hospice software needs.

Use hospice management software to run your business

As your hospice business grows, you’ll need to optimize your operational efficiency. Implementing the right hospice management software is a key step in this process. Advanced software solutions can significantly reduce the time spent on administrative tasks, allowing for a greater focus on enhancing patient care. Evaluate various software options to find one that best fits your specific needs, considering factors like patient record management, scheduling, and regulatory compliance. A well-chosen software system not only streamlines operations, but also supports your team in delivering compassionate and effective care.

Jotform is an excellent solution for any hospice looking to use software for multiple aspects of its business. Jotform can help with everything from patient consent forms to physician referrals.

Jotform Enterprise

Jotform Enterprise for hospice is an all-encompassing tool that includes templates, tables, approval workflows, and much more. It comes with unlimited APIs and webhooks, so hospices won’t be limited in the number of forms, submissions, and payment options they can handle.

In addition, hospice administrators can assign custom permissions to different users, ensuring only the right people see confidential patient information.

Jotform Teams

A shared workspace, Jotform Teams is ideal for any size team, especially interdisciplinary groups that collaborate to provide patient care in a hospice setting. With Jotform Teams, an IDG can keep all of their meeting documentation in one place, assign permissions for each document, and work collaboratively to provide the best care.

Jotform templates

Jotform offers HIPAA-friendly, ready-to-use form templates, such as a Hospice Referral Form , Online Medical Consent Form , and Hospice Volunteer Application Form . Each template is secure and easy to customize using Jotform’s intuitive drag-and-drop form builder. Hospice businesses can change the form’s branding, colors, and visuals, as well as add and remove form fields.

Jotform Tables

Jotform Tables makes it easy to store essential data from multiple people, such as assets for hospice IDG meetings. Incoming form responses are saved to the associated table. Staff can also import existing data from other documents into a table and enter data manually.

Jotform Tables enables hospice businesses to securely save and manage large amounts of vital information.

Jotform Workflows

Jotform Workflows is designed to help hospice businesses organize their workflows and automate key approval tasks.

For example, one of the most important tasks the platform streamlines is getting consent from a patient for a procedure or treatment.  With Jotform Workflows, you can set up an approval workflow that begins as soon as someone fills out a Medical Consent Form . Once everyone involved in the workflow signals their approval, the treatment can go forward.

Because all of the information submitted through the form and all of the steps in the approval process are recorded in Jotform Tables, you won’t need to do any manual data entry or paperwork.

Jotform Apps

Jotform Apps provides a great way for hospice businesses to create customized apps. The platform comes with easy-to-use app templates like the Symptom Tracker App , a great way for doctors to track their patients’ symptoms and keep all the data in one easy-to-access location. You can also use Jotform Apps to help patients and families access important forms on their phones.

The decision to start a hospice business is driven by a desire to support terminally ill patients and their families through their most challenging times. Setting up a hospice business, including navigating through various licenses and accreditations, can be daunting. However, providing hospice care gives you the opportunity to have a significant impact on others’ lives. To make the journey of starting a business easier, take advantage of available resources and consider seeking guidance from experienced consultants in the field. Their insights and support can help you navigate the complexities of the hospice business landscape.

Jotform can fulfill all your document and process management needs when you’ve got the company up and running. Its powerful, flexible capabilities will help you manage and grow your business and its commitment to providing compassionate, effective care.

Thank you for helping improve the Jotform Blog. 🎉

RECOMMENDED ARTICLES

The 5 top hospice deficiencies and how to avoid them

5 of the best hospice documentation tools

Medicare hospice regulations you need to know

How to create a hospice business development plan

How much does it cost to start a hospice business?

How to get more hospice referrals

How to prepare for a CAHPS Hospice Survey

Understanding hospice IDG documentation standards

3 valuable IDG meeting templates for hospice businesses

How to increase your average hospice census

Hospice care at home vs the hospital

Your hospice startup checklist: 7 essential items

How to make the most of IDG hospice meetings

Hospice in assisted living communities: How care works

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117 days ago

This is so good to me and very comprehensive. IAM excited to get it.Still trying to read God bless

Hospice Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 10,000 entrepreneurs and business owners create business plans to start and grow their hospice companies.

In this article, we will first give you some background information with regards to the importance of business planning. We will then go through a hospice business plan template step-by-step so you can create your plan today.

Download our Ultimate Hospice Business Plan Template here >

What Is a Hospice Business Plan?

A business plan provides a snapshot of your hospice business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Hospice Business Plan

If you’re looking to start a hospice business or grow your existing hospice company, you need a business plan.  A solid business plan will help guide your business strategy, your investment strategy and your decision-making. It will also help you raise funding, if needed, and plan out the growth of your hospice business to improve your chances of success. Your hospice business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Hospice Businesses

With regards to funding, the main sources of funding for a hospice business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for hospice companies.

Finish Your Business Plan Today!

How to write a business plan for a hospice business.

If you want to start a hospice business or expand your current one, you need a business plan. A strong hospice business plan should include the following 10 sections:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of hospice business you are running and the status. For example, are you a startup, do you have a hospice business that you would like to grow, or are you operating a chain of hospice businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the hospice industry.
• Discuss the type of hospice business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of hospice business you are operating.

For example, you might specialize in one of the following types of hospice businesses:

• Non-Profit Hospices: These organizations reinvest any surplus funds back into the hospice’s services and community programs. They often rely on donations, grants, and fundraising to support their operations.
• For-Profit Hospices: These are privately owned or publicly traded companies that aim to generate profit while providing hospice care. They may operate multiple facilities and focus on efficiency and growth.
• Home Health Agency Hospices: These are typically part of a larger home health agency that offers a range of services, including hospice care. They provide end-of-life care as part of their broader home healthcare offerings.
• Independent Hospices: These are standalone hospice organizations that operate independently of larger healthcare systems or networks. They may be non-profit or for-profit and often focus on providing personalized, community-based care.
• Franchise Hospices: These are part of a franchising model where individual owners operate their hospice facilities under the guidelines and branding of a larger franchisor. They benefit from the support and standardized practices provided by the franchising organization.

In addition to explaining the type of hospice business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of patients served, the number of cases with positive outcomes, reaching X number of clients served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the hospice industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the hospice industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your hospice business plan:

• How big is the hospice industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your hospice business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your hospice business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals aged 85 and up, individuals aged 75 to 84, individuals aged 65 to 74, and individuals younger than 65, and families of patients at the end of life.

While the customer segment(s) you serve will not have a great impact on the type of hospice business you operate; clearly, elderly individuals would respond to different marketing messaging than partner healthcare organizations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. Consider the specific demographics of target customers, including a discussion of the ages, occupations, locations and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other hospice businesses.

Indirect competitors are other service options customers have that aren’t directly competing with your product or service. This includes family caregivers, other healthcare providers, or members of the clergy. You need to mention such competition, as well.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of hospice business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for the uninsured?
• Will you offer services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a hospice business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of hospice company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide home-based hospice or inpatient hospice?

Price : Document the prices you will offer and how they compare to your competitors. Essentially, in the product and price sub-sections of your plan, you are presenting the services you offer and their prices.

Place : Place refers to the site of your hospice company. Document where your company is situated and mention how the site will impact your success. For example, is your hospice headquarters or facility located in a busy medical district, a business district, a standalone office, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your hospice marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local medical offices
• Reach out to potential referral partners, such as Commission on Aging or medical practitioners
• Distribute flyers to hospitals and medical facilities
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows:

Everyday short-term processes include all of the tasks involved in running your hospice business, including answering calls, planning and providing care, billing insurance and/or patients, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your Xth patient / family, or when you hope to reach $X in revenue. It could also be when you expect to expand your hospice business to a new city.

Management Team

To demonstrate your hospice business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing hospice businesses. If so, highlight this experience and expertise.  Also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who act as mentors to your business. They  help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a hospice business or successfully running a small medical or social services practice.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you see 5 patients per day, or five per week? And, will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to ground your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your hospice business, this will not give you immediate profits. Rather, it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately; that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets, be sure to include several of the key costs needed in starting or growing a hospice business:

• Cost of equipment and office supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of insurance plans you accept.

Putting together a business plan for your hospice company will improve your company’s chances of success. The process of developing your plan will help you better understand the hospice market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Business Plan Template is the quickest and easiest way to complete a business plan for your real estate investing business.

Don’t you wish there was a faster, easier way to finish your Hospice business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

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