Licensing Requirements for Home Health Agency

The home health care industry is rapidly growing, according to the U.S. Bureau of Labor Statistics. The U.S. Administration on Aging projects that the number of senior citizens needing services will nearly double by 2030.

Trends

• The need for home care services is increasing nationwide. Baby boomers are aging and people are living longer. Cost containment measures and medical advances are resulting in frail people being in their own homes.

Regulation

• State health departments can be a valuable resource when opening a home health care agency.

  Regulation of the home health industry varies between jurisdictions. Most states require that home health care agencies be licensed. Licensing standards are also dependent upon services offered.

Types of Services

• Types of services offered is a factor in licensing requirements as well as reimbursement eligibility determination.

  Services generally fall into two categories: skilled and unskilled. Skilled services are therapies such as speech and physical therapies, professional nursing care, and medical social worker services. Non- skilled services may include companionship, homemaking, transportation, and personal care assistance.

Medicare

• If the home care agency is eligible for and plans to accept Medicare reimbursement, additional federal standards must be adhered to. Contact the Centers for Medicare and Medicaid Services for further information.

Getting Started

• It takes several months or more to open a home health care business.

  Contact your state board of health to request licensing information and an initial application, if required. Ask if there is a state organization of home health care providers. If there is, consider joining for peer support, networking opportunities, education, and guidance. Develop a comprehensive business plan. Contact the U.S. Small Business Administration for business plan development assistance.