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What licenses do I need to start a home health care business in California?

3 min read

With California's senior population projected to grow significantly, the demand for licensed home health care businesses is rising. Understanding what licenses you need to start a home health care business in California is the first critical step to entering this vital market and ensuring compliance.

Quick Summary

Operating a home health care business in California requires securing a state Home Health Agency (HHA) license from the California Department of Public Health (CDPH), along with federal, state, and local business registrations, and potentially Medicare certification.

Key Points

  • CDPH HHA License is Primary: The main license for providing medical home health services comes from the California Department of Public Health (CDPH).

  • Home Health vs. Home Care: Home health is for skilled medical services, while home care is for non-medical assistance; they require different licenses from different state agencies.

  • Physical Office is Required: Your home health agency must have a commercial, not residential, office space in California.

  • Medicare Certification is Optional but Critical: Obtaining Medicare certification allows you to bill for services, expanding your client base significantly.

  • Staffing and Policies are Key: The licensing process requires qualified key personnel (Admin, DPCS) and comprehensive, state-compliant policies and procedures.

  • Background Checks are Mandatory: All personnel, especially Home Health Aides, must undergo and clear criminal background checks as part of the licensing process.

In This Article

Distinguishing Home Health Care from Home Care

In California, there is a key distinction between 'home health care' and 'home care'. Home health care involves skilled medical services such as nursing or physical therapy and is regulated by the California Department of Public Health (CDPH). Home care, regulated by the California Department of Social Services (CDSS), focuses on non-medical assistance with daily activities. For a home health care business, the CDPH is the primary authority.

The California Department of Public Health (CDPH) Home Health Agency (HHA) License

The CDPH Home Health Agency (HHA) license is essential for providing skilled nursing services at home. Obtaining this license requires submitting a detailed application to the CDPH's Centralized Applications Branch (CAB). This application covers various aspects of your business, including structure, organization, and staff qualifications. The process includes a survey by the CDPH to ensure compliance with state and federal regulations.

Essential Business Formation and Federal Credentials

Establishing a home health care business involves securing foundational credentials beyond the state license. This includes registering your business as a legal entity with the California Secretary of State. You will also need an Employer Identification Number (EIN) from the IRS for tax purposes and a National Provider Identifier (NPI) to bill Medicare and other payers. The NPI is obtained through the National Plan and Provider Enumeration System (NPPES).

Operational and Personnel Prerequisites

CDPH licensing also requires meeting specific operational and staffing standards.

1. Physical Office Location

A home health agency in California must have a physical office in a commercially zoned property. The office needs to be adequate for administration and record protection.

2. Comprehensive Policies and Procedures

Develop detailed policies and procedures aligning with CDPH standards for patient care, quality assurance, training, and record-keeping.

3. Qualified Staffing

Hire personnel with specific qualifications:

  • Administrator: Must have healthcare management experience.
  • Director of Patient Care Services (DPCS): A registered nurse with significant home health experience.
  • Home Health Aides (HHAs): Must be CDPH certified, which includes training and a criminal background check.

Medicare Certification and Accreditation

Medicare certification is crucial for billing Medicare, a key funding source for many agencies. This involves a separate application with Medicare and meeting their Conditions of Participation (CoPs). Accreditation from bodies like ACHC or CHAP can aid in this process and boost credibility.

Comparison of Home Health Agency (HHA) and Home Care Organization (HCO) Licenses

Feature Home Health Agency (HHA) Home Care Organization (HCO)
Services Provided Skilled medical services (nursing, therapy, etc.) Non-medical assistance (bathing, dressing, errands)
Licensing Authority California Department of Public Health (CDPH) California Department of Social Services (CDSS)
Physical Office Required in a commercial location Required
Staff Requirements Qualified administrator, Director of Patient Care Services (RN), certified Home Health Aides Registered Home Care Aides (background checked)
Medicare Billing Possible with certification Not possible

The Home Health Agency Application Process

  1. Business Formation: Register your entity with the California Secretary of State.
  2. Federal Credentials: Obtain EIN and NPI.
  3. Secure an Office: Establish a commercial office space.
  4. Develop Policies: Create and document required policies.
  5. Assemble Application Packet: Gather forms and supporting documents from the CDPH website.
  6. Submit to CAB: Send the complete packet to the CDPH Centralized Applications Branch.
  7. Pay Fees: Submit the required application fee.
  8. Prepare for Survey: Arrange for a CDPH representative survey.

For a detailed overview of the official application process, please refer to the {Link: CDPH website https://www.cdph.ca.gov/Programs/CHCQ/LCP/Pages/AppPacket/HHA-Initial.aspx}.

Conclusion

Starting a home health care business in California requires careful navigation of the licensing process. The most important step is obtaining the state's Home Health Agency (HHA) license from the CDPH. By planning your business, getting the necessary permits, and adhering to state and federal rules, you can build a compliant business in the senior care field.

Frequently Asked Questions

A Home Health Agency (HHA) provides skilled medical services and is licensed by the California Department of Public Health (CDPH). A Home Care Organization (HCO) provides non-medical assistance and is licensed by the California Department of Social Services (CDSS).

Yes, in addition to the state-level CDPH Home Health Agency license, you will also need to obtain local business licenses and permits depending on the city and county where your business will operate.

No, California state regulations for home health agencies require a physical office in a commercially zoned property.

The process can take several months, or even longer, depending on factors such as the completeness of your application packet, required inspections, and processing times at the CDPH.

You do not need Medicare certification to obtain your initial CDPH license. However, to be able to bill Medicare for services, which is a major revenue stream for many HHAs, you will need to apply for and achieve Medicare certification separately.

Your agency must employ a qualified Administrator and a Director of Patient Care Services (DPCS). Additionally, all Home Health Aides must be certified by the CDPH.

An NPI is a National Provider Identifier, a unique 10-digit number used to identify healthcare providers. You will need an NPI to bill Medicare and other insurance providers.

References

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Medical Disclaimer

This content is for informational purposes only and should not replace professional medical advice. Always consult a qualified healthcare provider regarding personal health decisions.