Michelle,
I decided to become an independent contractor after working in an acute care setting for 8 months after graduation. I did all the right research, spoke to all the right people, reviewed tax laws, spoke to CPA's etc...but it all came down to taking a "leap of faith". The people I started working with are PT's (husband and wife) and they understand the home health business from a PT perspective. I actually sub-contract through them to home health agencies. In turn they "market" us to various home health agencies, take care of billing, provide equipment (ie. bands, tubing, restorators, etc...), act as a "buffer" sometimes between us and the home health agencies, and take a cut off the top for their services. Also, I can sometimes choose the patients I would keep on my caseload versus passing on to a PTA for supervision if they are not in my area of town. RE: taxes... be disciplined. You should count on putting away 25-30% of your paycheck each time for taxes. Deductions are the key here. Be religious about keeping reciepts. Which leads me to another very important point - get a great CPA. They are well worth the price.
Originally, I got into home health after being an employee because I needed the flexible time schedule to take care of ailing parents and young children. I love the flexible schedule and great pay. On the downside, if you take off work, you don't get paid - no sick time, no [aid personal time, and no paid vacations. Another downside is no CEU reimbursement (at least with my company). You also have to be confident about your clinical skills. While I have great mentors and collegues I can call anytime, I know not every PT has this in home health. Be ready to seek them out. Also, be ready to drive alot. It can be pretty rough on your body to drive as much as you have to for home health. If you need good health insurance benefits they are out there but are expensive.
Hope this helps
Roy Hendricks, MSW,MPT