Question: I do not have any collateral but I have been working on this for a long time. I have written my business plan and have created a website and brochure. I know where I want my location to be. All I need is help and someone to work with me until I get on my feet, says PR from Kingston who wants to set up a geriatric nursing home. Money is the main problem.

Response: It appears that PR has none of the resources required to set up the nursing home, but based on the advice of SmallBiz: Problem Centre experts, we can provide her with information which she will find useful.

According to those who run geriatric homes in Kingston, the cost of setting up a geriatric home or a place of residence for older folk depends on what kind of nursing home you have in mind, as these range from specialist homes for the mentally ill to high-end homes for those who need companionship and minimal medical supervision only.

Just to set up the home with furnishings and equipment, including a refrigerator, deep freeze, televisions and beds, might require seed capital of $500,000.

The payment of salaries for nurses, nurses' assistants and ancillary staff would be added expense.

About $1 million might be enough to begin if you have a building which does not require a lot of renovation and if you already own a vehicle for transportation purposes.

According to Molly McGann, registrar of institutions and facilities at the Ministry of Health, there is definitely a demand for "more nursing homes of a high standard to attract the North American market".

According to McGann, Jamaicans are returning home only to find that their children can't accommodate them.

"If we target the overseas market, it can be lucrative, especially in the high-end niche, which features recreational facilities, visits to Milk River Bath, etc."

Such services allow retired people to continue enjoying life, even if at a slower pace, and still be a part of the community.

McGann says that it is quite possible to get certification for a home within three months as the institutions and facilities committee meets once each quarter.

Applicants would need a location and a space plan prepared by a draughtsman, and a policy document indicating how the home would be run.

GUIDELINES

The very first step would be the approval of your location by the parish council or the Kingston and St Andrew Council (KSAC).

If the home is opened without requisite permission, it can be closed, especially if it is located in a residential area or other areas where there are restrictions.

A nursing home is a commercial business but is often placed in residential areas for obvious reasons.

If the location is not approved for use as a nursing home, one can apply for a change-of-use certificate - from dwelling house to commercial purpose.

This involves producing a diagram of the floor plan and parking area, which can be done by any draughtsman.

Once that hurdle is crossed, there are other steps:

1. The ministry's office of institutions and facilities unit would need to examine internal conditions, looking at the number of beds per room, spacing, the frequency of medical doctors visits, use of registered nurses and practical nurses who would be needed around the clock. They would also check the ratio of practical nurse to clients, which should be 4:1. The doctor must come every three months and registered nurses must be in the facility at least eight hours per week.

2. In addition, there are safety requirements which the fire department needs to approve. These involve smoke protectors, fire extinguishers and approved fire-drill procedures.

3. A public-health inspector needs to approve the environs, and also inspect the kitchen for meal preparation and food storage. Infestation of roaches and rodents would be looked for.

Once all the facilities and services are approved, you should then take all documentation, including an application form for certification, and deliver them to the Registry of Institutions and Facilities at the health ministry.

The cost of certification varies with the number of residents:

One to 25 residents: $5,000 payable every two years

Twenty-five residents and above: $10,000 every two years.

Your application will be sent to a committee for approval, and then forwarded to the chief medical officer, who signs off on the certificate.

The entire process does not need to take very long as most steps can be taken simultaneously, McGann states.

Email the Ministry of Health: smiths@moh.gov.jm.