Causing Palliative Care Startup Costs: From Licensing to Facilities

Related Blogs

  • How to start a palliative home care service
  • Hospice Care Business Model Canvas
  • Demystifying the cost-effectiveness of palliative care: 7 common questions answered!
  • Maximizing Your Palliative Care Business: Boost Sales With Smart Strategies
  • What are the strengths, weaknesses, opportunities and threats of palliative care companies. SWOT analysis.


When it comes to caring for our aging population, the need for quality palliative care is greater than ever. According to the National Hospice and Palliative Care Organization (NHPCO), approximately 1.57 million patients received hospice care in the United States in 2017, which represents an increase of nearly 9% from 2016. This is a poignant reminder that the demand for palliative care is growing, despite an ever-growing aging population.

Although more people are seeking high quality palliative care, the process of opening and running a hospice facility can seem daunting. This blog post outlines the start-up costs associated with opening a hospice facility, so you can better understand the required expenses.


Start-up costs

Start-up costs for opening a hospice range from ,000 to 0,000+. Typical startup costs include:

Costs Amount (USD)
Purchase of land and / or construction ,000 or more
Medical equipment and supplies ,000 or more
Furniture and accessories ,000 or more
Computers, network and software ,000 or more
License and authorization fees Vary by state, 0 and up
Assurance ,000 or more
Recruitment, training and other administrative costs ,000 or more
Hiring staff ,000 or more
Contracted services (e.g. grounds care) ,000 or more
Total 5,000 or more

These costs can vary widely depending on geographic location, hospice size, and other factors.

Purchase of land and / or construction; Costs

The cost of purchasing land and/or a building for a hospice facility can be quite high. It is important to research the local market to ensure you are getting the best possible price. According to the US Department of Health and Human Services, the median cost of a hospice was 5,000 in 2015. However, the price range can vary widely depending on the size and location of a facility.

The cost of land can also vary greatly depending on location. Factors such as the availability of adjacent amenities, zoning status, and zoning restrictions can all affect the cost of purchasing land. It is important to thoroughly research the local market to get an accurate picture of current land costs in the area.

READ:  9 Essential Steps to Launch Your Profitable Storage Solutions Store

It is also important to consider the costs associated with building and/or renovating structures on the property. Building a new structure from scratch can be expensive. Most hospices prefer to be in existing buildings, but this can also present its own set of costs. It is important to consider the cost of all permits, potential upgrades and hiring contractors for any necessary modifications.

Finally, it is important to consider the additional costs associated with the purchase of land and/or a building. These can include legal fees, property taxes and the cost of an appraisal. All of these costs can add up quickly, so it’s important to consider them when budgeting for a hospice facility.

Medical equipment and supplies;

When starting a palliative care business, medical equipment and supplies are essential to providing the highest quality care. Statista reports that in 2019, medical equipment and supplies cost an estimated total of .3 billion in the United States.

Medical supplies and equipment can range from basic items such as blood pressure cuffs and glucose monitors to more complex and expensive items such as ventilators, cardiorespiratory monitors, infusion pumps and specialty mattresses. Each configuration will depend on the type of palliative care provided.

Specific palliative care items may include beds, elevators, oxygen supplies, defibrillators, nebulizers, enteral therapy systems, and IV poles. Depending on the type of setup, items such as wheelchairs, walkers, merchandise, or shower chairs may also be required.

Medical technology can change rapidly, leading to newer and more advanced equipment coming to market. Palliative care providers may need to update equipment if they want to provide the best care.

In addition to the cost of the equipment and its installation, there are also costs associated with ongoing maintenance and repairs. Palliative care providers need to plan for these costs over the long term.

Furniture and accessories

To open a hospice, you might need furniture and fixtures to provide comfort to patients and their families. The cost of furnishing a hospice facility varies greatly depending on the size, type and condition of the furnishings. According to a 2018 Agency for Health Care Research and Quality survey, the annual cost of furniture and fixtures for a hospice center averaged ,000.

READ:  Safe Takeoff and Landing: A Guide to Runway Safety and Precautions

Furniture that might be needed for a hospice includes bed frames, bedside tables, dressers, chairs, couches, and recliners. These items can cost a few hundred dollars to a few thousand dollars each. You might need 10-15 of these items to meet your customers’ needs.

Accessories needed at a hospice may include wheelchairs, lifts, stretchers, and other medical equipment. Prices for these items vary greatly, but a wheelchair, for example, can cost you between 0 and ,000.

Additional furniture and accessories to consider for a hospice can include items such as curtains, artwork, lighting, and decorations. The cost of these items can range from a few dollars to several hundred dollars each.

It is important to remember that furniture and fixtures are only part of starting a hospice. You may also need to add items such as medical supplies, medical technology, and personnel to provide the best service to your customers.

computer network and software;

Starting a hospice business requires technical and medical knowledge , so it’s important to consider both the costs of computers, networks, and software as well as the costs associated with medical care. Costs vary depending on the type of services, the location and size of the facility, and the medical equipment and technology needed. On average, palliative care requires an initial investment of between ,000 and ,000 for equipment, staff, and other start-up costs.

Computer networks and software are an essential part of palliative care. The cost of IT equipment, such as servers and computers, can range from around ,000 to ,000. Additionally, the cost of the software you need to run a hospice can range from around 5 to over ,500 per month. The cost of other technical services, such as setting up a computer network and ongoing maintenance, will also contribute to the cost of opening a hospice.

Creating and running a secure network system and backing up confidential medical records is also a significant expense . This cost can range from a few thousand dollars to over ,000, depending on the size and scope of the project. In addition, there will be other regular expenses for IT staffing and technology maintenance and upgrades.

READ:  7 Q must answer: How profitable is your tennis club?

Although the cost of computers, networks and software to run a hospice facility can be significant, it is critical to a successful operation. Investing in computers, networks, and software can help ensure the safe and secure handling and storage of confidential medical records and improve overall operational efficiency, making it worthwhile in the long run.

License and authorization fees

When opening or launching a hospice, it is important to be aware of the costs associated with licensing and authorization fees. Depending on the state and location, these fees can vary widely, ranging from a few thousand to tens of thousands of dollars. According to the National Hospice and Hospice Care Organization , some of the costs associated with licensing include, but are not limited to:

  • License application (usually costs around 0-800)
  • License fees (usually costs between a few thousand to tens of thousands of dollars)
  • Delayed fee (charged if payment is made after deadline; usually around -50/day)
  • Administrative fees (charged for processing requests, typically -200)
  • Background check fee (usually -0)
  • Certificate registration (usually -0)

Costs may vary by state and jurisdiction, but current statistical information from the International Center for Health Market Resources estimated average licensing costs in the United States to range from ,000 to ,000 $ .


The cost of opening, starting and launching palliative care can be difficult to estimate without a general understanding of insurance components. Generally, hospice care is provided, in part, by Medicare, the federal government’s health care program and private health insurance, Medicaid, and organizations such as the Veterans Health Administration. They generally cover up to 80% of palliative care costs.

The remaining cost of palliative care that is not covered by insurance is the financial burden on the palliative care family. This is why it is essential for those wishing to open and operate a hospice service to understand the different types of insurance available, as well as the amount they will cover.

The average cost of palliative care per day was 9 in 2019 . The average total costs for hospice patients in the United States exceeded ,000 in 2019. The national average Medicare reimbursement per patient across the entire hospice care package was ,000 in 2019.

READ:  Learn how to improve your drawing skills with these tips and techniques

Private health insurance providers vary in the amount of coverage offered to palliative care. According to the United States Department of Health and Human Services, most private health insurance policies cover up to 80% of hospice costs. However, coverage amounts may vary from plan to plan.

Medicaid also offers varying amounts of coverage for palliative care. Generally, Medicaid covers up to 80% of hospice costs for eligible people in the United States. The amount of coverage may vary based on state and other individual circumstances.

Similarly, the Veterans Health Administration generally provides hospice care to veterans, active duty service members, and their family members at little or no cost. The VA also provides financial assistance, such as pensions and life insurance, to eligible veterans.

When opening and running a hospice service, it is important to consider the insurance options available and the amount of coverage they provide. Working with experienced hospice financial advisors and other qualified individuals can help you understand coverage amounts and are best for you.

Training recruitment and other administrative costs;

Opening and running a palliative care organization requires a significant investment. According to the National Hospice and Hospice Care Organization, the average start-up cost ranges from 0,000 to ,000,000. Recruitment and training staff, as well as office set-up and other administrative needs, account for the majority of these costs. The table below outlines the costs involved in opening and launching a hospice business.

  • Recruitment and training staff – ,000 – 0,000
  • Office space, furniture/equipment – ,000 – 0,000
  • Insurance and license – ,000 – ,000
  • Accounting services – ,000 – ,000
  • Marketing and Advertising – ,000 – ,000
  • Technological infrastructure – ,000 – ,000
  • Staffing (nurses and home health aides) – ,000 – 0,000
  • Administrative/operating costs – ,000 – 0,000
  • Medicare/Medicaid Reimbursement – 0,000 – 0,000

These costs represent the wide range of expenses associated with opening and running a hospice business. In addition to the costs described above, other variables must be considered, such as the cost of medications, supplies, and other services.

READ:  Learn about the main financing options for investing in a Schlotzsky franchise business

By taking these variables into account and estimating the costs of starting a hospice business, you can realistically determine whether or not this business is feasible for you. Understanding the costs of starting a palliative care business is essential for success and sustainability.

Hiring staff

Hiring staff is one of the major costs associated with opening and launching a hospice care facility. The actual cost may depend on several factors such as the size of the palliative care facility, the type of care, and the location.

According to recent data, the cost of hiring an intern for palliative care averages ,000 for the first year, with about 0,000 for each subsequent year. Registered nurses cost an average of ,000 per year. Licensed practical nurses and assistant nurses cost an average of ,000 per year. Social workers and certified nursing assistants come with an average price of ,000 per year.

Hospice caregivers are essential to providing quality end-of-life care, and their salaries reflect this. According to the Bureau of Labor Statistics, the average annual salary for a hospice nurse is between ,000 and ,000. Other costs associated with hiring staff may include employment recruitment services, health benefits, vacation pay, transportation and relocation costs.

Ultimately, the cost of starting up and launching a palliative care facility can vary greatly, depending on factors such as the healthcare resources available in the area, the size of the facility, and the qualifications and skills of the provider. staff. However, hiring staff is one of the biggest costs to consider and one of the most expensive.

Contracted services (e.g. grounds care)

Setting up and maintaining a hospice is a big financial undertaking, and one of the less obvious costs is related to contracted services such as field care. Most hospices require regular maintenance of their grounds and in order to provide a peaceful and aesthetic environment for their visitors, they must hire grounds maintenance companies.

According to the National Center for Health Statistics, the median cost of grounds maintenance services in the United States was ,000 in 2018. This cost could vary depending on the size of the grounds and the complexity of the landscaping. Factors such as location, geographic region and the nature of the project could also affect the amount of money spent on ground care.

READ:  Measure digital strategy agency performance

When looking for grounds maintenance services for a hospice, it is important to consider the quality of work as well as the cost. Although there may be options for cheap labor, it could end up costing the hospice more in the long run if the work is not done properly. Additionally, the hospice should consider services such as snow removal or pest control when budgeting for grounds care.

It is also important to regularly consider the safety of the grounds and ensure that any potential risks are taken care of. This could include removing fallen branches, preventing accidental slips and falls, and securing pathways. All of these types of services can have an impact on the total cost.

Overall, while the cost of contracted services for grounds maintenance is an important consideration when setting up a hospice, the quality of services is equally important. Considering all the potential costs and ensuring the job is done correctly will ensure that the grounds are well looked after and visitors to the hospice can relax in a peaceful environment.


Ultimately, the total cost of opening a hospice facility varies greatly depending on facility location, size, and other factors. In general, start-up costs can range from ,000 to 0,000, depending on the number and type of services offered. It is important that potential hospice operators consider all of their start-up costs, from land and construction purchases to recruiting and training staff, before committing to launching the business.

Owning and managing a hospice can be a fulfilling and rewarding experience, but it should not be undertaken lightly. Careful research and planning is required to ensure the facility can be opened and sustained over the long term. When considering the costs of opening a facility, operators should always prioritize quality of care over profitability. By investing in the best equipment, supplies and personnel, operators can create an invaluable service that truly meets the needs of their target populations.