How to Start An Assisted Living Facility

If you're interested in learning how to start an assisted living facility, start by defining your geographic area. Will you be in one city or state or will you branch out across the country or region? State laws and required certifications will have a major determining impact on your decisions. Assisted living facilities are not federally regulated. In addition, there may be local (municipal) licensing issues to address.

Be sure to contact your state agency responsible for regulating assisted living facilities. This can be the Department of Aging and Disability, Department of Health and Human Services, the Department of Public Welfare, etc. Each state is different.

Aging Baby Boomers

Regardless of where you plan on starting an assisted living facility, you'll likely find a market. The baby boom generation is moving into its senior years, and the need for assisted living facilities is increasing. However, profitability is far from assured as there's heavy regulatory pressure on assisted living facilities.

Business Plan

Your first step should be to develop a business plan and feasibility study. Unless you're self-funding, these items will be necessary to secure financing. They'll also tell you how realistic your plans are. Critical factors to include are the cost of real estate and construction, capital expenditures, staffing, and day-to-day operating costs. In addition to regulation, there's a lot of competition for senior dollars. Assisted living facilities that will attract the most profitable tenants aren't the "nursing homes" of days gone by. Baby boomers are looking for a lifestyle in their retirement communities, including assisted living facilities.

Since an assisted living facility is both a real estate and health care development, you'll need to keep trends in both areas in mind. Be careful not to price your living quarters out of the price range of your market area. And keep in mind that the health care element of your business will have to stay current, at some level, with other local health care providers.