How to Start a Home Health Care Business in California

The need for home health care services is growing nationwide, and California is no exception. Now may be an excellent time to start a home health agency to cater to increasing demand.

This guide outlines the requirements for starting a home health care business in California.

1. Do your research

Before you start a home health agency, it’s important to do some research and planning. You may want to focus on areas such as:

• The demand for home care in your area
• Who your ideal clients are and the services they may need
• Who your competitors are, the services they provide, how much they charge, and how they advertise their business

With research in hand, you can develop a business plan. This document can help you set business goals, make strategic decisions, and track your success. A business plan may be required to apply for small business loans or to attract investors.

2. Become a home health aide

If you are managing a home health agency but not directly working with clients, becoming a home health aide may be unnecessary. However, this is an essential step if you are directly involved in patient care.

You must complete an approved home health aide training program in California. This consists of 120 hours of training, including 20 hours in a clinical setting. You will be tested on your ability to properly care for patients.

3. Establish your business

Next, you’ll need to complete the admin. In California, this means applying for a business license and any necessary permits, as well as registering for a tax ID number through the IRS. You may also want to set up business-only bank accounts for your agency.

4. Insure and bond your business

Business insurance is an important requirement for starting a home health care business in California. Your coverage will help protect your business, employees, and clients.

As part of the application process, you must show proof of the following coverage:

General Liability – These policies help protect your business against third-party bodily injury and property damage claims. As of August 2023, you must have coverage of at least $1 million per occurrence and $3 million in the aggregate.

Professional Liability – These policies cover mistakes or errors in your work and negligence claims. Like General Liability, you will need at least $1 million per occurrence and $3 million in the aggregate.

Workers’ Compensation – These policies provide protection for employers if an employee suffers a work-related illness or injury. Your policy must cover all home care aides associated with your agency.

California home health agencies must also purchase an employee dishonesty bond to operate in the state.

5. Apply for a home care organization license

With your research, training and admin out of the way, you can apply for a home health agency license. This allows you to operate legally in California and allows you to accept Medicare and Medicaid patients.

6. Hire employees

Anyone working directly with patients must have a home health aide certification in California. It is your responsibility to verify their licensing and request a background check. Consider hiring people who are empathetic, trustworthy, hardworking and good at solving problems—all essential qualities for successful home health aides.

7. Market your business

There are many ways to grow a home care business, such as:

• Creating a professional website
• Listing your agency on Google Maps
• Setting up social media profiles
• Advertising online, on radio or TV, and in local newspapers
• Staffing a table or booth at local community events
• Partnering with medical professionals and senior groups for referrals

Cover your home health agency with BizInsure

Starting a home health agency is an exciting venture for those looking to break into the market. With planning and hard work, you may soon grow your home care business into a thriving agency that provides vital services to the community.

Business insurance is a requirement for starting a home health care agency in California, but finding policies doesn’t need to be difficult. With BizInsure, you can compare quotes online, choose your coverage and buy—all in about 10 minutes!