Wheatland Health Services

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Home Health Care Services Business Plan

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Market Analysis Summary

The consumer base for Wheatland Health Services (Home Health Care Services) will be patients referred by physicians, health care facilities and other health care professionals. The majority of these patients will be covered by Medicare with a smaller portion being insured by Kansas Medicaid or other private insurance carriers.

The consumer base for the Personal Injury Case Management component of our business will be those individuals who have been injured either on the job or in another type of accident. These referrals will come from attorneys seeking case management services for their clients or from insurance companies who are requesting assistance in mitigating the injuries and loss the client suffers.

4.1 Market Segmentation

The population base in Southeastern Kansas is aging, and more individuals are opting to stay in their own homes longer and return home following hospitalization, rather than proceeding to a nursing home. Our primary market segment includes those patients -- typically in an older age bracket -- who require health care services by home health nursing staff. These patients may also require other home health services, such as social work, in order to access needed community resources.

Our secondary market will be those individuals who have suffered a personal injury and require case management services to assist them in addressing medical, financial, and employment issues.

Market Analysis
Year 1 Year 2 Year 3 Year 4 Year 5
Potential Customers Growth CAGR
HHC - Medicare Patients 10% 100 110 121 133 146 9.92%
HHC - Medicaid and Private Insurance Patients 10% 25 28 31 34 37 10.30%
PICM Patients 30% 12 16 21 27 35 30.68%
Total 12.31% 137 154 173 194 218 12.31%

4.2 Target Market Segment Strategy

Because our agency specializes in home health care and community-based social services, we will focus on those market segments where we know our services are most needed. Focusing on those market segments that require only home-based services will greatly decrease overhead, since additional office space will not be required.

4.3 Service Business Analysis

Wheatland Health Services is a combined Home Health Care and Social Service Agency serving a four-county region in Southeastern Kansas. Home health care and social services are typically utilized by individuals and families, with service referrals coming most often from other professionals (i.e. physicians, hospitals, attorneys, etc.).

There are currently three other Home Health Agencies serving the same area, but we are unique in that we plan to offer community-based social services as well as home health care.

4.3.1 Competition and Buying Patterns

The key factor considered by both consumers and referring professionals when purchasing home health care is trust in the professional reputation, reliability and quality of services provided by the home health Agency.

Pricing of home health services does not usually influence consumers' choices, as most home health services are reimbursed by Medicare, Medicaid, and private insurance companies, and reimbursement rates are set by those entities. Pricing of personal injury case management services is a more important factor, as these services are paid for as negotiated on a case-by-case basis at an hourly rate. When pricing personal injury case management services, we will explain to the client that we estimate the total number of hours needed to complete services liberally, rather than bidding low and then exceeding the anticipated total bid price for services.

Consumers of both home health care services and personal injury case management services rarely compare service providers directly. Usually they follow word-of-mouth recommendations, especially when those recommendations come from their physicians.

Perhaps the most important element for assessing competition in the Home Health and Social Service fields is how to persuade other professionals to repeatedly refer their clients to our agency for services. As our agency demonstrates outstanding patient care, current and pertinent qualification of service providers, and professional organization and business management, we believe that we will be able to capture the majority of the home health care and personal injury case management market in our designated region.