Requirements for Starting a Home Health Business in Tennessee

Home health agencies provide health care services for patients who may prefer to stay in their homes or cannot afford to live in a residential health care facility. According to the Bureau of Labor Statistics, medical treatment may be more effective when administered in a familiar home environment. In the state of Tennessee, the Department of Health Services and Development Agency oversees the licensure of home health businesses.

Certificate of Need

• The Tennessee Health Services and Development Agency requires that certain health care facilities--including home health businesses--submit a certificate of need (CON) application prior to completing a licensure application. The certificate of need allows the state agency to determine if there is a need for the health facility. The CON is not only required for new businesses but also if owners plan to make modifications or location changes to their already licensed facilities. The Tennessee agency evaluates home health business CON applications on three criteria: the health care services offered; the need for those services; and the financial ability of the applicant to meet those needs. Decisions on whether to approve or deny the certificate of need applications can take 30 to 60 days, according to the state's Health Services and Development Agency website.

Application

• Once the CON application is granted, home health business owners must complete the home health agency application for initial licensure. Applicants must provide information about the location of their businesses, their administrators and all owners. According to the Tennessee application materials, potential licensees must also state what kinds of services their home health agencies will provide and if they are part of an existing health care entity, such as a hospital. The applicant must sign the application before a notary public and mail it, along with the fee, to the Tennessee Bureau of Health Licensure and Regulation.

  State of Tennessee Department of Health

  Bureau of Health Licensure and Regulation

  Division of Health Care Facilities

  227 French Landing, Ste. 501

  Heritage Place Metrocenter

  Nashville, TN 37243

Initial Licensure & Renewal

• After mailing the licensure application to the Bureau of Health Licensure and Regulation, prospective licensees must submit a letter to the Bureau's regional office in their area. This letter should provide notification that home health business owners are ready to have their facilities inspected by licensure staff. Letters should be sent 30 to 45 days before the owner is ready for the inspection, according to the Department of Health Services application instructions. The inspection allows staff to ensure that the facility meets all Tennesee requirements for home health agencies. Once the owner passes the inspection and the application is approved by the Bureau, a home health agency license will be issued within seven to 10 days of approval, according to the application. Business owners must maintain Tennessee licensure by passing regular inspections, completing a renewal application and paying a fee.