Once you have decided that in-home care services is the best option for staying at home, you may be sometimes faced with the decision of whether you should hire a caregiver directly, or use a home care agency for the services. And you may sometimes tend to make a decision to hire a caregiver yourselves, it is usually because of financial considerations. Since there is no overhead such as insurance or payroll taxes, direct hire caregivers may seem to cost less in the short term. If the you choose to hire directly, you become the employer and are fully responsible for the caregiver employee. There are important considerations you should be aware of before making this important decision, especially if the caregiver to be hired is not a close relative or long-time trusted friend.

1. "Private" caregivers who do not work for an agency do not carry their own liability insurance or worker's compensation. If an accident or other incident occurs on the job, the employer (you) would be responsible, possibly costing the you thousands of dollars. One caregiver with a back injury can mean years of medical bills, not to mention the potential of lawsuits.

2. What will happen if the caregiver calls off or doesn't show up? You need to have a back-up plan, since there won't be an agency involved to send a reliable replacement at short notice.

3. Mostly you may not have the required resources to perform background checks or other screening on your direct-hire caregivers.

4. As the employer, you are responsible for training, disciplinary action and terminating the caregiver (if necessary) if you hire the caregiver directly. If you use an agency, the agency handles these responsibilities.

5. If hiring a caregiver directly, you need to be able to assess the quality and skill level of the caregiver. This is especially important if the client needs hands-on personal care, or is not able to walk and move independently. Proper training and supervision is essential for the health and safety of both the client and the caregiver. Improperly trained or skilled caregivers could result in client falls or injuries.

6. By law, you (the employer) is responsible for filing payroll taxes, tax forms, and verifying that the employee can legally work in the U.S.

In today's tight economic times, saving money and using resources wisely is more important than ever. Hiring a caregiver directly may be slightly less expensive in the short term. However, the tremendous risk and potential long-term costs need to be considered. One on-the-job accident that results in an injury or lawsuit costs far more than the savings realized by hiring directly.