An Entrepreneur’s Guide to Home Care Licensing

An Entrepreneur’s Guide to Home Care Licensing

November 29, 2022 By Rob Cantrell
Categories: Blog

Starting a home care agency comes with several hurdles, including how to get a home care license.

Unless you have a background in the senior care industry, you probably have some big questions around home care licensing — questions like:

  • “Do I need a license to operate a home care business in my state?”
  • “How much do I need to pay for a home care license?”
  • “What are the licensing requirements for my business and my staff?”
  • “Where can I find information or get guidance about the licensing process?”

At Senior Helpers, we offer training and one-on-one support to franchise owners who need home care licensing assistance. This helps make the licensing process much easier on owners as they prepare to open their agencies.

Whether you’re launching an independent agency or buying an in-home care franchise, it helps to know what the licensing process looks like and what you should expect along the way.

In this post, we’ll outline the essentials of home care licensing, including the most common types of licensing requirements and how these requirements differ from state to state.

How to Get a Home Care License

Home care licensing is handled at the state level. This means each state sets their own rules around home care licensing requirements, processes, and fees.

Today, there is a high degree of variation in these rules. In some states, there are no licensing requirements for home care agencies. In others, new home care businesses need to meet strict standards before a license is approved.

As a home care entrepreneur, you will need to learn about the specific requirements, processes, and fees for your state. If you’re buying a franchise, your franchisor can guide you through this process. If you’re starting an independent business, you will likely need to perform this research independently.

Here are the main questions you’ll need to answer about home care licenses in your state:

Does your state require a license to operate a home care business?

Most states in the U.S. require licensing for home care businesses. However, four states currently allow home care businesses to operate without a license: Iowa, Massachusetts, Michigan, and Ohio. If you are starting your business in one of these states, you will not need a license.

Do licensing requirements change for non-medical home care vs. home health care?

In terms of licensing, there are two main types of home care businesses. The first type is non-medical home care. This type of business is limited to services such as personal care, companionship transportation services, errand services, and housekeeping assistance. It may also include non-medical care for individuals with conditions such as Alzheimer’s, Parkinson’s, or diabetes.

The second type is home health care. This type of business can provide all of the services covered by non-medical care, while also providing skilled nursing services. Because this type of business involves nursing, the licensing requirements and standards may be more stringent.

What are the fees for home care licensing?

Home care licensing fees can vary widely from state to state. In some states, the cost of a license is a flat fee. In other cases, licensing fees are calculated based on the size of your business. If you are starting a new business, these fees will affect your startup costs.

Does your state offer provisional licenses?

Out of the 46 states that require a license to operate a home care business, 28 allow businesses to operate with a provisional license. A provisional license allows you to operate your business before passing an inspection. This way, you can begin operations before your license is officially approved.

What are the requirements for your business?

Home care agencies are required to provide or verify certain information about their business as part of the application process.

  • Business Details. This may be limited to basic information about your business or be as extensive as including a copy of your business plan.
  • Physical Location. You will need to provide proof that your business is operating from a secure location that meets state requirements for home care businesses.
  • Certificate of Need. Some states require home care businesses to provide a Certificate of Need (CON), which confirms sufficient local demand for home care services.
  • Insurance Information. Most states require proof of both professional insurance and liability insurance.
  • NPI Number. Some states ask that businesses provide their National Provider Identifier (NPI) as part of their application.

What are the requirements for your staff?

The home care licensing process for your business may include requirements for office staff and caregivers. The most common requirements are criminal background checks. Some states also require fingerprinting and/or drug testing.

As with home care business licensing, requirements for caregiver certifications can differ from state to state. If your state requires certification for caregivers, you may need to provide proof of state registration for your staff.

When do you need to renew your license?

Most home care business licenses last for one year and need to be renewed annually. A small number of states require renewal less frequently, with licenses lasting for two years at a time.

Licensing Your Business with a Senior Helpers Franchise

The team at Senior Helpers understands how tricky home care licensing can be for new business owners. Over the years, we have helped hundreds of new franchise owners navigate state requirements and get their businesses licensed.

If you’re starting a home care business, a franchise business like Senior Helpers can make the licensing process less stressful, confusing, and time-consuming. We have more than 20 years of experience with licensing for home care agencies across the U.S. As a franchise owner getting licensed for the first time, you can lean on our guidance and resources during the licensing process.

Here are some of the key ways that we provide licensing support to new franchises:

  • We offer information about home care licensing requirements during franchisee training, providing a basic roadmap to getting your business licensed.
  • We work one-on-one with new owners, and will provide information about licensing requirements and procedures for your state.
  • We offer continued support to franchisees as they apply for licensing, and we can help guide you through the process step by step.
  • We also help new franchise owners understand certification requirements for staff, including support with caregiver certification.

In addition to support with business licensing, Senior Helpers offers comprehensive training and support for new franchise owners. This includes help with business planning, local marketing, lead generation, caregiver recruitment, and other core aspects of agency operations.

Thanks to this support, it’s possible to start a home care business without prior experience. In fact, many of our most successful franchisees started their agencies and got licensed without a background in home care!

Want to learn more about buying a Senior Helpers home care franchise? Contact us online or book a 15-minute call to find a franchise opportunity near you!