How to Get Your Home Health Care Business License In 7 Steps

How to Get Your Home Health Care Business License in 7 Steps

Considering joining the growing home care industry? We don’t blame you. Currently, the home care providers market is worth $120 billion in the U.S. That number is only expected to grow as an aging population looks to live in their homes as long as possible.

Federal, state, and local governments heavily regulate the industry. The regulations are to protect you and your patients. So, when starting a home health care business, one of the first things to do is get a home health care license. Here’s a look at the steps involved in how to get a home health care business license.

1. Choose Between Medical vs. Non-Medical

The type of services you provide could change the type of license you need and how you get it. For example, to offer medical services like medication administration, you’ll need to hire medical professionals before you begin the process of licensing. However, this comes with more liability for your business.

You could stick to non-medical services and provide companionship or other daily activity assistance. Some states will still require skilled medical professionals to be hired to meet the requirements for a license for non-medical home care agencies.

2. Find Out Your State Requirements

Whether you’re looking to offer medical services or operate as a non-medical home care provider, there are several steps to take before accepting clients. First, research what your state requires. Not all states require licenses for home care. CareAcademy finds three that don’t: Iowa, Massachusetts, and Michigan You can typically find these requirements on the Secretary of State’s website.

Depending on your state’s requirements, you’ll need to attend training, and state officials or an accrediting body will perform inspections. The process of getting your business license can take three to 18 months, depending on your state. Some states will provide you with a provisional license during the process. States with an increase in applications for home care licenses might take longer.

There are 18 states that require an inspection visit before receiving a provisional license for non-medical home care or home health care companies. Then, after that first inspection, follow-up inspections occur every so many years, again depending on the state.

More than a dozen states require home health care agencies to file a Certificate of Need before applying for a business license. This certificate helps state authorities monitor the supply of providers in the health care market. It evaluates the local demand before allowing a new facility or agency to open. Apply for your certificate of need first, before your license, just in case you need to reconsider your territory.

A benefit to owning an A Place At Home franchise is our market research. We know what areas and territories a home care agency can thrive in. All our base franchise unit territories have 40,000 qualified senior residents.

3. Create a Business Plan

For some license registrations, you’ll include a business plan. Generally, it’s good to have one completed before you finalize your business setup anyway. Your business plan will outline core business activities and how you plan to achieve goals. These documents include an executive summary, products, and services offered, a market analysis, marketing strategy, financial planning, financial projections, and a budget.

4. Register Your Business With the State

Before you move on to getting your license for your non-medical home care agency, register with your state through the Secretary of State and the State Department of Revenue Services. Typically, this step is as easy as filing your business name with the state and local governments.

5. Set Up an Office

Secure an office space for your business. You’ll need locked cabinets to store client and company records. In addition, most license applications will require you to include a copy of your lease.

Only a small executive suite is necessary when you become an A Place At Home franchise owner. It allows you to perform private, professional interviews with your care staff members.

6. Follow State Training Requirements

Study the mandated training for you and your employees. The requirements vary by state. Ensure it’s all completed fully before applying for a home health care license. Most states require everyone have CPR/AED training, even if you’re a non-medical home care agency. Caregivers have specific training requirements to follow.

7. Apply For Your Home Health Care License

Finally! Once you’ve completed all the previous steps, you have made it to the end of our guide on how to get your home health care business license. You can submit your license application. Fill out all the necessary forms and provide the proper materials to your state to receive your licensing.

FAQs on How to Get a Home Health Care Business License

Still have questions after reading through the guide? Here are some frequently asked questions surrounding the licensure process:

  • How much will it cost?
    Like most other things, this varies by state. Fees can either be a flat rate or based on the number of employees. For example, a Texas home and community support services agency license costs $2,625.
  • How often do I have to renew?
    This is another state-by-state regulation, but it can also depend on how much you want to pay to extend your license. States typically require a renewal annually or every two or three years. The more you pay at one time, the longer the license period is.
  • Do I still apply for a license if I buy into a franchise?
    While you’re paying to join a trusted brand, you still have to follow the rules and regulations of your state for home care agencies. So, yes, you still have to go through the steps of how to get a home health care business license and pay for it, even when you’re affiliated with a franchise system.

Let A Place At Home Guide You Through the Process

Instead of worrying about navigating how to get a home health care business license by yourself, let us help you at A Place At Home. By becoming an owner with us, you’ll receive not only licensure guidance but also a step-by-step process on how to start a home health agency. You’ll follow our five-step CARE track to gain the tools you’ll need for success. You can capitalize on multiple revenue streams — all while being backed by a reputable national brand that people recognize. Those opportunities include care coordination, finding senior living alternatives, and staffing services.

Don’t sweat the small steps. Let A Place At Home lead you to open your own home care agency. Submit a franchise form to get started.

Assisted Living Business: What to Expect When Starting One

Thinking about starting an assisted living business? Get insights on profitability and what to expect when running a business in the assisted living space. Read more.

What Can I Expect?

An assisted living facility can be a massive undertaking. Consumer Affairs notes that, on average, assisted living facilities accommodate 27 to 33 patients. As an owner, you provide caregivers for those patients to help with daily activities like going to the bathroom and getting dressed, medication management, house cleaning, laundry, meals, and social programs and activities.

You’ll need an assisted living certification to get started. This requires you have at least one staff member for every six residents. In addition, state and federal regulators require multiple types of insurance to operate, including workers’ compensation insurance, general liability insurance, property/casualty insurance, and umbrella insurance.

You’ll need to find and acquire a property that meets specific standards. That includes accessibility for all residents to reach essential parts of the facility, green space on the premises, ample parking, and safety and security features.

Then, you’ll need to perform extensive marketing to fill the rooms at your assisted living business. Finally, employees are essential to running the property. You’ll need to hire and retain quality certified nurse assistants, nurses, and other staff members to keep the place running. Don’t forget those employees will need training.

Assisted Living Center Services

You’re caring for dozens of seniors 24 hours a day, seven days a week when you own an assisted living business. That means you’ll need to provide a variety of services. These include providing clinical assistance and documenting it. You’ll create a comfortable, home-like environment for your residents. Organize social activities. Make and serve at least three meals a day. All of these factors must be done while following strict state and federal guidelines for senior living properties.

Are Assisted Living Facilities Profitable?

Senior services are growing in demand as the U.S. population is aging. The U.S. Department of Health and Human Services reports that someone turning 65 has a nearly 70% chance of needing some long-term care services and supports in their remaining years. The assisted living home market size was estimated at $73.6 billion in 2018, with a compound annual growth rate of 6.4% over the forecast period.

While the market is a significant size, the costs of running an assisted living facility are high, leaving many facilities to operate at a negative net profit margin. Two of the biggest problems facing assisted living businesses are inflation and hiring. Inflation is increasing all costs of running the facility, forcing owners to pass along the increase to their residents. In addition, many businesses are struggling to hire and retain workers. The battle is an even bigger deal for senior living companies because they have to decrease their occupancy if they don’t have enough people to work.

Why is an In-Home Care Business a Better Idea?

Leave behind the stressors of running an entire assisted living facility by opening an in-home care business, like A Place At Home. You’ll face less liability and cheaper upfront investment costs. In addition, an in-home care business is easily scalable as you hire employees as your client list grows.

The demand is growing for senior home care. It’s projected by International Franchise Association (IFA) that by 2050, more than 27 million Americans will use senior care services. Plus, not only is the age of Americans rising, but so is the percentage of seniors who want to age in their homes. These two factors combined will send the demand for in-home senior care services skyrocketing. For a near future projection, an estimate quoted by IFA predicts a 29% increase for in-home assistance aides through 2024.

When opening an in-home care business, you don’t need many supplies. You’ll need a reliable vehicle, cell phone, and computer. But you won’t have to worry about building or renting a massive facility to hold dozens of residents and activities.

According to Profitable Venture, you only need one caregiver per four clients, although regulations may vary by state. So, you can quickly work to hire employees as you increase your client list.

No medical services are needed for in-home care businesses, just compassionate care and assistance for seniors like a companion, lifestyle, or personal care. This means you don’t have to undergo the extensive process of getting permits and licenses or dealing with health insurance companies.

Invest in Senior Care With A Place At Home

Don’t wonder how to start a home health agency. Become a franchise owner with A Place At Home instead. We provide in-depth training and a proven business model to follow for a low initial investment cost of $84,185 to $148,517. As a result, our franchisees are finding success with our multiple revenue streams. According to our latest franchise disclosure document, franchisees reported an average sale amount of more than $1 million in 2021, leaving lots of room to profit from your initial investment.

Are you ready to be our next top performer? Get started by submitting a franchise form today.