Healthcare, Education & Personal Services · Buyer guide
Buying a Home Care Agency business
Published · Reviewed by The Diligence Standard Team · Updated
Home-care agencies can grow quickly but labor availability, referral concentration, payer mix and compliance risk can make revenue less durable than the headline growth suggests.
How the business works
Caregiver supply, client retention, bill/pay spread, referral sources, compliance and scheduling density determine quality of earnings.
Risks to test
- Caregiver shortage/turnover
- Referral-source concentration
- Compliance or credential issues
- Owner-held relationships
- Client concentration
- Payroll timing vs. collections
Evidence to request and reconcile
- Client and hours history
- Caregiver roster/payroll/credentials
- Referral-source data
- Billing and collections
- Compliance records
- Scheduling reports
Decision questions
- How many client hours disappear if the top referral source changes behavior?
- What is caregiver turnover by tenure?
- Who owns hospital/case-manager relationships?
- How much working capital is required to fund payroll?
- Are all credentials and compliance records current?