Before Starting Your Agency: Home Care Business Requirements

Starting a home health care agency requires several steps and there are many requirements you must satisfy to get your business off the ground. In this article, we will outline the most important home care business requirements you will need to complete before you can start your agency.


Write a Home Health Care Business Plan

First and foremost, you need to have a well-written home health care business plan. This document will outline your business goals, strategies, and how you plan on achieving them. It should also include a marketing plan and financial projections. The plan will help you stay focused. Then, when the company starts to grow, you can make adjustments to the plan to sustain the growth.


Other Home Health Care Requirements

In addition to a business plan, there are other home health care requirements you must satisfy. These include obtaining the proper licenses and insurance and hiring caregivers. Let’s take a closer look.

Home Health Care Agency Licensing

To operate a home health care agency, you must obtain a home health care license from the state in which you plan to do business. The requirements vary by state, but generally, you need to have a registered business name and address, pass a criminal background check, and provide proof of liability insurance. In some states, you must also pass a yearly training program, take a tuberculosis test, and receive an on-site, unannounced visit by the licensing inspectors. 

Home Health Services Insurance

You also need to have insurance for your home health care business. This protects you and your employees from potential lawsuits. Home health care agencies are typically required to carry general liability insurance and professional liability insurance. You may also need workers’ compensation insurance if you have employees.

Hire Professional Caregivers

One of the most important home care business requirements is hiring caregivers. They are the heart of your business and provide vital services to your clients. When hiring caregivers, be sure to check their references and conduct a thorough background check. Also, make sure they are properly trained and have the necessary skills for their specific job.

Acquire Home Health Care Business Equipment

Another business requirement is acquiring the necessary home health care business equipment. This includes items, such as wheelchairs, walkers, and hospital beds. You will also need transportation to take your clients to and from their appointments.

Home Health Care Industry Vehicles for Transportation

Home health care businesses use a wide variety of vehicles for transportation. These include vans, cars, buses, and trucks. Each type of vehicle has its own set of advantages and disadvantages. You need to choose the right one for your home health care business and you’ll want to base the individual needs of your clients on your final decision. For example, if you need to transport clients who are in wheelchairs, your vehicle must be large enough to accommodate the bulky equipment, as well as the clients and driver. And, if you transport multiple clients at once, you’ll need more space for all equipment items needed. A sizable van is probably best-suited for the needs of your business; however, again, this depends on your clients and their needs.

Home Health Care Business Marketing Plan

A home health care business marketing plan is another important requirement. This plan will help generate leads and grow your business. It should include a mix of online and offline marketing strategies such as SEO, social media, and print advertising.

Obtain Federal Employer Identification Number

In order to operate a home health care business, you need to obtain a federal employer identification number (EIN) from the IRS. This is a nine-digit number that is used to identify your business for tax purposes. You will also register your business and obtain a business license from the state in which your care agency is situated.

Obtain Medicare and Medicaid Provider Numbers

If you plan on providing home health care services to Medicare and Medicaid patients, you need to obtain provider numbers from both programs. These numbers are used to bill the government for services rendered. Becoming a provider helps your business grow and reach more patients. So, ensure that you satisfy the requirements and renew them as necessary.



Starting a home health care business is a big undertaking. There are many home care business requirements you need to satisfy before you can get your business off the ground. However, if you have a clear plan and the necessary resources, you can be successful in this fast-growing and profitable industry.