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Starting an Alternative and Complementary Health Care Business

Last Verified: 2005-10-20

TABLE OF CONTENTS

The following is intended to provide an understanding of potential license, permit or registration requirements when considering the establishment of an alternative and complementary health care business in Canada. This document was prepared by Canada Business and contains a series of possible steps and issues to consider in carrying out your project. The extent to which the information will apply to you will depend on the circumstances related to your situation.

For further information on individual topics identified herein, contact your local Canada Business service centre . Because this document is only meant as a guide, the Canada Business service centres will not accept responsibility for business decisions made based on the information provided.

Note: A customized guide on starting an alternative and complementary health care business is available for the following provinces or territories. Provincial/territorial government, municipal and non-government information may be included, depending on the subject and the region.

BASICS TO GETTING STARTED

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Before proceeding, reference should be made to the Business Start-up Info-Guide for your region for information on the steps involved in establishing a new business.

Starting a business can be a rewarding undertaking, but it comes with its challenges. Before starting a business in Canada, it is wise to do your research. You should also make sure you are suited for entrepreneurship, and understand that significant effort may be required. As such, you should thoroughly enjoy the field you are getting into, and you must believe in your product or service as it may consume much of your time, especially during the start-up phase. There are many issues to consider such as regulations, financing, taxation, managing your business, advertising, and much more.
For more information, see the  Checklists for Going Into Business.

The following is additional information to consider.

INDUSTRY OVERVIEW

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Alternative health care is a growing industry in Canada. The most recent National Population Health Survey by Statistics Canada (1998/99) found that 3.8 million Canadians aged 18 and over had consulted an alternative health care provider at least once during the previous 12 months. Alternative health care providers for the study included, for example massage therapists, homeopaths, herbalists and acupuncturists. This represented a 2% increase in consultations from the previous study of 1994/95.

The Fraser Institute published a report on the use of complementary/alternative medicine by Canadians and found that during the 1997 calendar year, Canadians spent approximately $1.8 billion out of pocket on visits to complementary and/or alternative health care providers and an additional $2 billion on herbs, vitamins, diet programs, and books.

A definition frequently referenced in research comes from the National Center for complementary and Alternative Medicine (NCCAM) in the United States. They define alternative medicine as a group of diverse medical and health care systems, practices, and products that are not presently considered to be part of conventional medicine (medicine as practiced by medical doctor or doctors of osteopathy and by their allied health professionals, such as physical therapists, psychologists, and registered nurses).

Alternative health care is often referred to as complementary and alternative health care. The terms "alternative" and "complementary" refer to using a same therapy differently. That is, alternative refers to using a particular therapy instead of conventional treatment; and complementary is used along with conventional medicine. Other terminology used can include:

  • alternative and integrative medicine
  • alternative therapies
  • complementary care
  • complementary and alternative medicines
  • alternative medicine.

Some types of alternative health care are more commonly used than others in Canada. In their study, The Fraser Institute identified the following practices as most commonly used: chiropractic (36%), relaxation techniques (23%), massage (23%), prayer (21%), herbal therapies (17%), special diet (12%), folk remedies (12%), acupuncture (12%), yoga (10%), self-help group (8%), lifestyle diet (8%), and homeopathy (8%).

The Statistics Canada study examining patterns of use of alternative health care in Canada found that the use is higher among women, people with higher education and higher income, people experiencing chronic conditions or pain, and in Western Canadians (explained in part due to more flexible provincial health care plans). Further, it concluded that Canadians were visiting alternate health care providers not as an alternative to conventional medicine, but rather to complement it.  

It is speculated that the demand for services within the alternative health care industry will continue to grow, fueled in part by Canada's aging population and the increase in chronic illness.

Types of Operation

There are many different kinds of alternative therapies, and several ways to operate these kinds of businesses.

The following are examples of such practices but are not limited to:

Acupuncture is an ancient Chinese art based on the theory that Qi energy flows along meridians in the body, and can be stimulated by inserting fine needles at specific points. Acupuncture is used to treat asthma, addiction, arthritis, depression, anxiety, blood pressure disorder and problems with the digestive system.

Aromatherapy involves the use of essential oils (extracts or essences) from flowers, herbs, and trees to promote health and well-being.

Ayurveda is an alternative medical system that has been practiced primarily in the Indian subcontinent for 5 000 years. Ayurveda includes diet and herbal remedies and emphasizes the use of body, mind, and spirit in disease prevention and treatment.

Chiropractic is a system that focuses on the relationship between bodily structure (primarily that of the spine) and function, and how that relationship affects the preservation and restoration of health. Chiropractors use manipulative therapy as an integral treatment tool.

Natural Health Products are defined as vitamins and minerals, herbal remedies, homeopathic medicines, traditional medicines such as traditional Chinese medicines, probiotics, and other products like amino acids and essential fatty acids. Natural health products are available for self care and self selection, and do not require a prescription to be sold. In Canada, natural health products, also referred to as complementary medicines or traditional remedies, are subject to the Natural Health Products Regulations.

Homeopathic medicine is a system based on the belief that "like cures like" meaning that small, highly diluted quantities of medicinal substances are given to cure symptoms, when the same substances given at higher or more concentrated doses would actually cause those symptoms.

Massage or massotherapy is the manipulation of muscle and connective tissue to enhance function of those tissues and promote relaxation and well-being.

Naturopathic medicine is an alternative medical system in which practitioners work with natural healing forces within the body, with a goal of helping the body heal from disease and attain better health. Practices may include dietary modifications, massage, exercise, acupuncture, minor surgery, and various other interventions.

Reflexology is a type of deep foot or hand massage designed to relax the whole body through the reflex response. The thumbs are used extensively to break up crystalline deposits that have formed at the nerve endings, particularly on the bottom of the feet.

Reiki is a Japanese word representing Universal Life Energy. Reiki is based on the belief that when spiritual energy is channelled through a reiki practitioner, the patient's spirit is healed, which in turn heals the physical body.

Therapeutic Touch is derived from an ancient technique called "laying-on of hands". It is based on the premise that it is the healing force of the therapist that affects the patient's recovery; healing is promoted when the body's energies are in balance; and, by passing their hands over the patient, healers can identify energy imbalances.

Yoga has been shown to alleviate stress and, at the physical level, has been seen to be useful in the treatment of those who suffer conditions that affect or are affected by posture, such as backache and arthritis.

Practitioners of alternative health care may be home-based, practice from an office or spa-like environment, or take their business directly to the client at their home or office (for example, chair massages in the workplace); or even a combination of these.

For more information regarding establishing your business, see the following documents:

Some practitioners may specialize in one discipline while others may train to offer multiple therapies.

To complement their practice, some practitioners incorporate a retail aspect to their business and may, for example, sell natural health or cosmetic products.

For more information regarding starting a retail business, see the following document:

Winning Retail is a useful " how to" publication aimed at the retail industry. For a student of retail, you will find in its pages practical ideas from the real world of retail to help form your understanding of the business.

Another type of business, pending on the discipline and qualifications of the practitioner can include teaching techniques to others.
 
According to the Department of Foreign Affairs and International Trade, the high costs of pharmaceuticals for many developing nations creates exporting opportunities for Canadian firms that specialize in alternative and natural health practices. Whether delivering these therapies directly to patients or providing training to individuals within the foreign market, there exists the potential for new and profitable experiences.

LICENSES, PERMITS AND REGULATIONS

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One area of rules and regulations that all new businesses must comply with is that of licenses, permits and regulations. When creating a business, you must contact the municipality involved, along with the provincial/territorial and federal governments.

Each municipal government has the authority to issue its own business licenses within its jurisdiction. Since there is no uniformity throughout the country regarding municipal licenses for businesses, you should consult with the appropriate local officials to determine whether your business will be affected by local regulations and licensing requirements. Businesses (including home-based businesses) must also meet the zoning by-laws that control property uses in their municipalities.

Examples of licenses, permits and regulations that could apply to you when starting your business may include, but are not limited to:

Licenses


Permits

  • vendor permit
  • building permit


Regulations

You can get permit, license and regulation information by contacting your province/territory, local city hall, town or village office or rural municipal office. Contacts for local, provincial/territorial and federal governments can be found in the government listings of your telephone directory or on the Government of Canada Web site.

The federal government is responsible for the licensing and monitoring of drugs, food, medical devices and natural health products. Provinces and territories are responsible for the delivery of health care and the authority to licence and regulate healthcare practitioners and other service providers.

The provinces and territories have passed legislation for many professions which delegates authority for the regulation of a particular profession from the province or territory to an organization comprised of members of the particular profession. These professional organizations are largely self-governing within the boundaries of their statutory authority and have been granted the privilege of self-governance in order to protect and promote the public interest.

BizPaL

BizPaL - Business Permits & Licences provides Canadian businesses with one-stop access to permit and licence information from all levels of government. This online service is offered by Industry Canada in partnership with provincial, territorial, and municipal governments

Certification and training
Contact the appropriate association for details regarding certification and training. A list of associations is provided below under the heading Associations.

Canadian Health Network has a document entitled What training do complementary and alternative practitioners receive?

MANAGING YOUR OPERATION

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Insurance
Insurance needs for businesses vary greatly. It is best to choose an insurance agent or broker familiar with your size of business and, in particular, an agent familiar with your type of operation. If you don't have an insurance agent, it could be a wise decision to ask other business owners in your area to recommend one.

The following list is included to remind you not to overlook the complex areas of business insurance. It is best, however, to discuss your specific requirements with your insurance agent.

Basic insurance:

  • fire insurance (extended coverage on buildings and contents);
  • liability insurance;
  • burglary protection (theft coverage);
  • dishonesty insurance (covers thefts by employees).

Professional liability insurance

  • the various associations (listed below) may have information regarding group professional liability insurance

Marketing/Advertising
Word-of-mouth advertising and good public relations are often the best ways of promoting your business. Depending on your market and its size, also consider flyers, business cards, brochures, newspapers (especially for holiday promotions), radio, TV, the business pages of the telephone book and the Internet. Also bear in mind that a satisfied customer is good advertising. Referrals are also a valuable way of making customers aware of your products or services.

A Web site is also a good marketing tool. It should have details to describe the location (your address, telephone and fax numbers, and directions on how to get to your establishment), hours of operation, services offered, credentials and anything else you think may be of interest to potential customers. However, once you launch a Web site, you must update it on a regular basis.

Participating in community events is another way of advertising your business. You may also hold events that will promote your business.

No matter how you choose to market your business, it is wise to track how your clients found or heard of your establishment - this may help determine your future advertising strategies.

For more information regarding advertising and marketing, see the following documents:

The Online Small Business Workshop - The Marketing Basics section covers the basics from developing your customer profile to promoting your business.

The federal Competition Act governs misleading advertising and deceptive marketing practices for most businesses in Canada. The Act defines which marketing practices are illegal and the process of complaint investigation.

For more information, consult the Competition Act - Misleading Advertising and Deceptive Marketing Practices, or visit the Competition Bureau Web site.

Market Research
Successful businesses have extensive knowledge about their customers and their competitors. Acquiring accurate and specific information about your customers and competitors is a critical first step in market investigation and development of a marketing plan.

In developing a marketing plan, your primary functions are to understand the needs and desires of your customer, select or develop a product or service that will meet customer needs, develop promotional material that will make the customer aware and ensure product or service delivery.

Accounting/Bookkeeping
A good record keeping system should be simple to use, easy to understand, reliable, accurate, consistent and designed to provide information on a timely basis.

Note: All staff working with cash should be trained to recognize counterfeit currency.

Selecting Professional Services
The use of professional services is essential to the success of a small business. Professionals can provide knowledge and expertise in the areas where you may have little. They can round out your management team to ensure your business is operating efficiently.

Professional services often used by entrepreneurs may include:

Furnishings and Equipment
Before you open your business, you may need specialized equipment. The kind of service you are offering will determine the type of equipment you will require. For assistance in this area, you may get the advice of a sales representative or consult trade publications and manufacturers' Web sites. List that equipment and its cost to you. An important factor to consider when choosing equipment is the after-sales service and repair and their affordability.

Used Equipment - Consider buying used equipment as a cost-saving measure. Sources of used equipment could be a similar business that is closing or dealers in second-hand equipment. The drawback to this approach is that, often, there are no guarantees with the purchase.

Leasing Equipment - Another alternative is to lease equipment to help keep start-up costs down.

For more information on parts and materials, overhead, stock control and pricing,  see the document Business Plan for Small Service Firms .

Setting-Up a Pay System
Pay administration is a management tool that enables you to control personnel cost, increase employee morale, and reduce workforce turnover.

Setting the Right Price
Setting the right price can influence what consumers will buy, which in turn affects the total revenue and the profit. In the end, the right price for the product/service is the price that the consumer is willing to pay for it. Hence, correct pricing decisions are a key to successful management.

Profit Watching
Making a profit is the most important -- some might say the only objective of a business. Profit measures success. It can be defined simply: revenues - expenses = profit. So, to increase profits, you must raise revenues, lower expenses, or both. To make improvements, you must know what's really going on financially at all times.

You can find additional information on managing your operations, by viewing our index of  Popular Business Topics .

ASSOCIATIONS

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Examples of associations include, but are not limited to:

RESOURCES

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Additional resources which may help alternative health care business owners include, but are not limited to:

Publications
You may find books, magazines and other relevant print material at any Canada Business service centre and/or business service organizations in your community that provide Canada Business information. Contact the  local Canada Business service centre  in your region for the location nearest you.

Health Care Co-operatives Start Up Guide - information on how to start a health care co-operative.
Perspectives on Complementary and Alternative Health Care - A collection of papers prepared for Health Canada.

Statistics

Statistics Canada

Related Web Sites

  • Canadian Health Network - The complementary and Alternative Health section of the Canadian Health Network has a listing of Web sites on alternative therapies including a list of key Canadian and international resources.
  • Health Canada - Complementary and Alternative Health Care
  • Alternative Medicine - Health Care Information Resources
  • Health Canada's Therapeutic Products Directorate - is the Canadian federal authority that regulates pharmaceutical drugs and medical devices for human use.
  • Health Canada's Natural Health Products Directorate - is the Canadian federal authority that regulates natural health products and ensure that all Canadians have ready access to products that are safe, effective, and of high quality, while respecting freedom of choice and philosophical and cultural diversity.
  • National Center for Complementary and Alternative Medicine - a United States government institute that is dedicated to exploring complementary and alternative healing practices in the context of rigorous science, training complementary and alternative medicine researchers, and disseminating authoritative information to the public and professionals.

ADDITIONAL INFORMATION

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When seeking business information, feel free to visit the Web sites for the Business Start-Up Assistant and the Online Small Business Workshop. You may also want to check with your local library, the major chartered banks, your local Chamber of Commerce, educational institutions and business development organizations -- some of which offer courses, seminars and workshops.

For general business information, you may contact your local Canada Business service centre  by:

  • Telephone : Call our toll-free telecentres and speak to a business information officer who will direct you to the best sources of information or refer you to programs and services relevant to your business situation. Some centres have optional recorded answers to frequently asked questions to speed up service.

  • E-mail : You can also send your questions via e-mail from the Web site.

  • In-Person : Canada Business offers an extensive collection of business-related publications, directories, leading-edge business products (e.g., videos, CD-ROMs) and access to external databases. Business clients can use these materials on their own or with the help of a business information officer. The Canada Business service centres have arrangements with existing business service organizations in communities across Canada to provide Canada Business information. Contact the Canada Business service centre in your region for the location nearest you.

BIBLIOGRAPHY

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The Canadian Health Network
National Center for Complementary and Alternative Medicine  
Complementary/Alternative Health Care and HIV/AIDS: Legal, Ethical & Policy Issues in Regulation; Canadian HIV/AIDS Legal Network
Health Reports, Vol. 13, No. 1, December 2001; Patterns of Use - Alternative Health Care Practitioners; Statistics Canada, Catalogue 82-003
Ramsay C, Walker M, and Alexander J (1999). Alternative medicine in Canada: Use and Public Attitudes. Public Policy Sources 21, Fraser Institute.

Related Reading

DISCLAIMER
Information contained in this document is of a general nature only and is not intended to constitute advice for any specific fact situation. Users concerned about the reliability of the information should consult directly with the source, or seek legal counsel.

Links Policy
Some of the hypertext links lead to non-federal government sites which are not subject to the Official Languages Act and the material is available in one language only.



Last Modified: 2007-02-01

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