How to Open a Home Healthcare Agency



We offer comprehensive home healthcare consulting services to help you open a home healthcare agency. Now is the time to fulfill that dream to satisfy the demand for in-home healthcare. As more of our population is aging, there is more of a preference of older Americans to be cared for in their own homes.

Opening a home healthcare agency will allow you provide much-needed home care services to those in need, especially the elderly and be rewarded by receiving appreciation or satisfaction from those that you serve.

There are many challenges when deciding to open a home healthcare agency. State licensing standards, regulatory requirements, and accreditation standards change often, so it is recommended you should partner with a home health care consulting company.

21st Century Health Care Consultants is regarded as the best resource for you to open a home healthcare agency. We have a complete understanding of the home healthcare industry standards, regulations, federal, state, and Medicare compliance and accreditation requirements. Since 1995, 21st Century Healthcare Consultants has assisted over 4,000 individuals to open home health care agencies and turned them into compliant, successful, rewarding, and profitable home healthcare agencies.

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21st Century Healthcare Consultants provides our clients with “Peace of Mind”. Peace of mind knowing that we assist with all the paperwork needed to establish a home healthcare 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 Healthcare 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 healthcare agency can administer skilled and therapy services while a home care agency cannot.
  2. A home healthcare agency provides services such as personal care, assisting with daily living, meal preparation, housekeeping, and transportation.
  3. Requirements for a home healthcare 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.

21st Century Healthcare Consultants can help you open a home healthcare agency.

Do I need to have a medical background to open a home healthcare agency?

You are not required to have any medical training or background to own a home healthcare agency. Having an excellent foundation in communication skills in addition to a solid business plan is all that is required to open a home healthcare agency.

What are the requirements to open a home healthcare agency?

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

  1. Registration. A home healthcare 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 Healthcare 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 Healthcare Consultants.
  4. Tax ID and EIN Number. A Home Healthcare Agency is required to apply for a Tax ID and EIN Number. 21st Century Healthcare 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 care 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 Healthcare 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.

What is the Reason Why You Should you Hire a Home Healthcare Consulting Company?

Opening a Home Healthcare Agency on your own is difficult but not impossible. Hiring a home healthcare consultant who has years of experience and knowledge about the requirements to open a home healthcare 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 Healthcare 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 Healthcare Agency out of my home?

Requirements for a home healthcare office will differ from state to state. Contact 21st Century Healthcare 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 Healthcare Agency

This includes:

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

Importance of Hiring Qualified Home Healthcare Nurses and Caregivers

Recruit the best nurses and caregivers available as the reputation of your Home Healthcare 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 for Home Healthcare?

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 Healthcare 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 healthcare associations available in your state. .

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