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

  1. 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.

  1. 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
  • Fundraiser
  • Account Officer
  • Front Desk Officer
  • Cleaners
  • 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.

  1. 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.

d. Threats
  • 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.

  1. 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.
  1. 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.

  1. 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.

  1. 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.
  1. 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.

  1. 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.

  1. Exit Plan

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.