Open a Home Health Care Agency



Have you ever dreamed of opening a Home Health Agency? Now is your chance to fulfill that dream to satisfy the demand for in-home care. As more of our population is aging, there is more of a preference of older Americans to be cared for in their own homes.

You can provide much-needed services to those in need especially the elderly as a home health care agency and be rewarded by receiving appreciation or satisfaction from those that you serve.

Opening a home health agency by yourself is a very challenging endeavor. State licensing standards, regulatory requirements, and accreditation standards change often, so it is recommended you should partner with a consulting company.

21st Century Health Care Consultants is the foremost the only resource for opening home health care agencies. We have a complete understanding of industry standards, regulations, federal, state, and Medicare compliance and accreditation requirements. Since 1995, 21st Century Health Care Consultants has assisted over 4,000 individuals to open their very own home health care agencies and turned them into compliant, successful, rewarding, and profitable agencies.

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21st Century Health Care Consultants provides our clients with “Peace of Mind”. Peace of mind knowing that we assist with all the paperwork needed to establish a home health agency in your state. Services provided but not limited to corporate or limited liability set-up, state licensure, Medicare 855A application, and documentation required for operations.

Do you want to open a Home Health Agency or a Home Care Agency?

If you are debating which type to open, here are the few differences between a home health agency and a home care agency.

Differences include:

  1. A home health agency can administer skilled and therapy services while a home care agency cannot.
  2. A home care agency provides services such as personal care, assisting with daily living, meal preparation, housekeeping, and transportation.
  3. Requirements for a home health agency are more extensive that may or may not include certifications for Medicaid and Medicare. Licensure for a home care agency is not so complex so many people prefer to go that route.
  4. Billing sources for a home health agency can either be paid by Medicare or Private Pay. A Home Care Agency is usually paid through private pay and by becoming a Medicaid provider.

Either way, 21st Century Health Care Consultants can help you either open a Home Health Agency or a Home Care Agency.

Do I need to have a medical background to open a Home Health Agency?

You are not required to have any medical training or background to own a home health agency. Having a strong foundation in communication and organization skills with a solid business plan is all you need to be successful in the home health industry.

What is Required to Open a Home Health Agency?

There are many requirements for opening a home health agency. Here is an overview of what you can expect.

  1. Registration. A Home Health Agency is required to be registered to be a legally operating business in your state. Requirements will vary from state to state. You can set-up the business entity either as a Sole proprietor, Partnership, Limited Liability Company, S Corporation, or C Corporation. 21st Century Health Care Consultants can help you choose what entity is best for your situation.
  2. Permits. Local permits are required and can include a health permit from your county’s health department and an occupational permit from the county's building and planning department.
  3. State Licenses. Requirements differ state to state. For more information, you can either contact your state's licensing board to request a package or you can contact 21st Century Health Care Consultants.
  4. Tax ID and EIN Number. A Home Health Agency is required to apply for a Tax ID and EIN Number. 21st Century Health Care Consultants can apply for these requirements and as part of the services, they provide to their clients.
  5. Services Plan. The owner of the home health agency needs to plan what services they will provide to those in their communities. If you are providing glucose monitoring as part of the services you provide, you will need to obtain a lab license or waiver.
  6. Policies and Procedures. Purchase professionally written policy and procedure manuals that include all the requirements for your state from a reputable company and not from a company where you must write one on your own. 21st Century Health Care Consultants policy and procedure manuals include all the requirements needed for your state and accrediting body standards.
  7. Operational Materials. As a Home Health Agency, you are required to have patient admission packets, Personal Files, Logs, Forms, In-service Education Plans, Nursing Procedures, Documented minutes for committee meetings, etc.
  8. Obtaining a contract to handle bio-hazardous waste.

Why Should you Hire a Consulting Company?

Opening a Home Health Agency on your own is difficult but not impossible. Hiring a consultant who has years of experience and knowledge about the requirements to open a home health agency will save you time and money. 21st Century Health Care Consultants simplifies the process and can expedite the approval of state licensures and accreditation. 21st Century Health Care Consultants will train your personnel to successfully operate the agency and provide all the documentation need to comply with state and federal laws.

Do I need to have an office, or can I run the Home Health Agency out of my home?

Requirements for an office will differ from state to state. Contact 21st Century Health Care Consultants and they can tell you what is required for your state.

The office should include:

  • Computer
  • Phone System
  • Fax Machine
  • Filing Cabinet
  • Accounting Software
  • Billing Software

Additional Requirements to Open a Home Health Agency

This includes:

  • Business Checking Account
  • Business Credit Card
  • Business Loan if required to meet costs

Importance of Hiring Qualified Nurses and Caregivers

Recruit the best nurses and caregivers available as the reputation of your Home Health Agency heavily weighs on the quality of care provided. Do your due diligence and check references of prospective applicants. There are many avenues a home health agency can take to find reputable nurses and caregivers in their state. One such way is to find caregivers is My CNA Jobs.

Where can I find Patient Referrals?

Determine the best sources for referrals in your area such as connecting with long-term care facilities and hospital discharge social workers. Contact local physicians, senior centers and rehab outpatient centers to reach prospective clients.

Other Suggestions and Requirements to Open a Home Health Agency?

  • Hire a website designer to create a professional with content site directed towards internet savvy adult children of seniors who are responsible for securing home care services. Post your agency listing on established elder care websites with strong internet presence for greatest exposure.
  • Have a professionally designed website.
  • Location, Location, Location. Research areas in your state where there is a need and without excessing competition.
  • When scheduling employees with clients, make sure not to overwork your caregivers as that can be harmful to your business and future referrals.
  • Join all the home health care associations available in your state. .

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