Is buying a non-medical home care agency different from buying a home health agency?

Both kinds of agency send people into clients’ homes, so they can look alike from the outside. Underneath, they run differently, and a buyer who treats them the same can misread what is being sold. This page compares the two as businesses. It does not say which approvals either one needs, because that is a question for your lawyer, and it depends on where and how the agency operates.

Who does the work

A non-medical agency usually relies on personal support workers and companions for help with daily living. A home health agency often adds nurses and clinical supervision, and its schedule, training and records reflect that. Ask what qualifications the staff hold, who supervises them, and how hard those roles are to fill. A clinical team is usually harder to replace if people leave.

Where the clients come from

Many non-medical agencies serve private-pay clients, often through families. Others rely on contracted or referred work, where an outside body sends clients and sets expectations. Each has its own risk. Private clients can be spread across many families. Contracted work can depend on a single relationship. Ask the seller to show where the clients came from and what would happen to each source if ownership changed.

Liability and insurance

The more clinical the care, the more your lawyer and insurer will want to look at the risks. Ask for the agency’s insurance policies, any incident history and how complaints were handled. Ask your insurance broker how coverage would carry across to you. For how lenders view agencies, our guide on financing a home care agency acquisition is a useful companion.

Documents to request

• Staff lists with roles, qualifications and supervision arrangements
• Client agreements and any contracts with outside referral bodies
• Insurance policies, claims history and incident records
• Any licences or approvals the seller says the agency holds