There’s a good deal of money to be made in elder care, and the demand keeps rising.
This industry isn’t going anywhere, and it’s no wonder many people are looking to get into it. At first glance, it seems like a smart, stable investment, but if you think all you’ll be doing is sitting back and counting your money, then you have no idea what this business is about, and maybe you should think about opening a coffee shop.
It’s hard work. Really hard work.
Every decision you make directly affects people’s health and safety. And these aren’t just any people; they’re fragile, vulnerable elders. If something goes wrong, financial consequences are the tip of the iceberg because you’ll also need to deal with legal issues.
Too often, eager entrepreneurs rush into this because they’ve seen occupancy rates and property values online, so they figure this thing can’t fail. But it can, and miserably so.
If you make mistakes you’re about to be aware of, you won’t stay in this business for very long.
Common Mistakes New Nursing Homes Need to Avoid
Running a nursing home is nothing like running a typical business, and a lot of new owners learn this the hard way.
Here are some common mistakes that can sink a nursing home extremely fast.
- Underestimating the Amount of Staff You Need
It takes a lot of people to properly care for elderly residents because this is not a 9-5 job.
It’s round-the-clock care. If you don’t have enough staff members on duty, workers get tired and stressed, which means they aren’t able to do their jobs well. In this situation, the residents are the ones who end up suffering the consequences, but give it some time, and you’ll feel it, too.
Families will see a drop in the quality of care your nursing home provides, start filing complaints, and before you know it, fines start rolling in, and people lose their trust in you.
And that’s very hard to come back from.
- Not Training the Staff
Even if you have enough staff, you won’t get anywhere unless you train them.
They all need to know how to handle the demands of the job, like helping someone with dementia, preventing falls, treating wounds, managing medications, etc. If training is rushed or happens only once, your staff is guaranteed to make serious mistakes, and you’re the only one to blame for them.
The staff need ongoing training to get the skills they need to do what needs to be done.
This’ll also protect the residents from harm, which, by extension, protects your business.
- Ignoring Compliance and Regulatory Standards
Nursing homes are frequently inspected, and for good reason.
The rules around licensing and safety are very strict, so when an owner ignores them, they get severe penalties in the form of fines and lost licenses. In some cases, entire facilities get shut down.
Compliance isn’t something you check off once and go about your business. It’s something you need to build into the way your nursing home operates every single day.
- Neglecting Health and Safety Protocols for the Residents
Little things like making sure residents eat, drink enough water, move around each day, and get their medicines on time aren’t little at all. These are fragile, vulnerable people you’re dealing with, and skipping routines like these leads to serious health issues.
Take pressure sores, for example. If a resident doesn’t move (or isn’t moved if they’re unable to do so themselves), they develop pressure sores that can get so bad they’re life-threatening.
| In the U.S., a single stage 2-4 pressure ulcer adds $43,000+ (USD) to hospital stay costs. – Agency for Healthcare Research and QualityOnly approx. 70.2% of stage 2-4 pressure ulcer hospitalizations in short-stay residences are reported by nursing homes. – Medical Care, Official Journal of the Medical Care Section, American Public Health Association |
And you best believe that families will look for stage 4 pressure sore legal advice from an experienced lawyer and then hit you with a lawsuit – these can be very hard to recover from.
- Mismanaging Financial Planning and Cash Flow
Owning a nursing home is not cheap, but you should know this already.
Staff wages, medical supplies, insurance, upkeep… The bills never stop coming. If you have an overly tight budget or you can’t manage your cash flow, you’ll be forced to cut corners, and that’s how problems start. You’ll need to have fewer staff, invest less money in training, delay necessary repairs, and perhaps even reduce the amount of medical supplies.
Will this save you money? Absolutely.
Will you regret doing it? Absolutely.
Cutting corners always leads to bigger costs later, both financially and legally.
Conclusion
You may not want to hear it, but you’ll work hard for every single dollar you earn from owning a nursing home.
This business isn’t for the faint of heart. It’s demanding, messy, it will test your patience and your bank account in ways you can’t even imagine, and you can be sure you’ll want to quit at least once every week.
But as hard as it is, it’s also a good opportunity to make money and care for other people at once. The mistakes you just read about aren’t meant to scare you, but prepare you for how it really is.
And if you make them, it’ll cost you.
