/ BLOG

Starting a Home Health Care Business in Arkansas

Sep 21, 2023 · 7 minutes to read

Demand for home health care services is growing across the country, including in Arkansas. With more and more Americans wanting to “age in place” or needing help managing a chronic disease or disability, now may be the time to start a home health agency in Arkansas.

A female nurse assisting a senior man in wheelchair

Starting a private home care business takes time. You will need to meet the requirements for starting a home health care agency in Arkansas, including getting licensed. This guide will help you get your home health care license and open an agency in The Natural State.

Before You Apply for a License

The application provided by the Arkansas Health Services Permit Commission requires basic information about your agency, finances, and services. It may be beneficial to set up the admin side of your home health agency before applying for a license.

  • Do market research
    • Determine the need for home health services in your county. Arkansas has maximum limits for the number of agencies allowed in an area based on population.
    • Get to know your competition, the services they provide, what they charge, and how they advertise.
  • Write a business plan – This is a “roadmap” for your agency, helping you set goals and make crucial decisions during the early months and years you’re in business.
    • Provide information about your agency, its structure, and key staff.
    • Outline the services you’ll provide.
    • Include budgets and revenue forecasts. You will need to provide budget projections for the first 12 months of business as part of your home health license.
  • Choose a business structure – There are several options to choose from, including individual owners, partnerships, or corporations. You will need to include this in your application.
  • Establish your business – New businesses must register with the Arkansas Secretary of State. You may also need certain permits to open a home health agency in your area.
  • Sort your business finances – An Employer Identification Number (EIN) from the IRS may be necessary to file business taxes, open banking accounts, or other activities.

Completing the Home Health Care Services Application Form

A completed application is required to get a home health care license in Arkansas. Medicare-certified agencies will apply for a Class A license, and non-Medicare facilities apply for Class B licenses.

Information required in the application includes:

  • A Permit of Approval (POA) (Granted prior to applying)
  • Details of your agency’s structure and ownership
  • The core home health services and additional services you will provide
  • A letter of support from a practicing physician who agrees to refer patients to your agency
  • Information on the staff you will hire and your plan for recruiting and retaining employees
  • Financial information, including budgets and revenue forecasts, to show your agency is financially viable

Protecting Your Agency

Home health agencies in Arkansas do not need business insurance to get a home health care license. However, by law, you may need Workers’ Compensation insurance if you have three or more employees.

While most business insurance is optional, you may still want to cover your home health agency. Unplanned expenses—like broken equipment, injury claims, and lawsuits—can prove devastating for small businesses. Your insurance policies could help you manage these and other risks so you’re not left out of pocket if the worst happens.

Arkansas home health agencies often buy policies such as:

Professional Liability, otherwise known as E&O insurance, protects your business against claims of negligence, misrepresentation or mistake, as well as document or paperwork errors.
Negligence claims and lawsuits are unfortunately common for home health providers. Professional Liability insurance can help protect your business if a client or their family is dissatisfied with the services you’ve provided.

General Liability policies can protect you against claims by an outside party regarding injury or damage to their property. In these instances, your policy will cover your legal expenses as well as your cost to replace or remedy the situation up to the limits of liability.
Home health aides often interact with members of the public. General Liability insurance helps protect your business if a third party (i.e., health professionals, suppliers, delivery people) makes a property damage or bodily injury claim against you.

A Business Owner’s Policy (BOP) is a convenient and affordable way for small business owners to protect against several of their most common exposures. These policies combine General Liability insurance with other types of coverage, such as business interruption and business property damage.

Hiring Employees

If your home health agency is certified to work with Medicare patients, then you will need to hire people with a home health aide certification in Arkansas.

Minimum Arkansas home health aide training involves:

  • 75 hours of instruction, including at least 16 hours in a clinical setting
  • Passing an exam that tests your patient care skills

As an employer, you can provide Arkansas-approved home health aide training to successful applicants or opt to hire people who already have their certification. You may also need to run background checks on new hires to ensure they are able to work with patients.

Growing Your Home Care Business

Starting a home health agency is one thing, but finding patients is another. Without patients to care for, your agency won’t be in business for long. A solid marketing plan can help you establish yourself in the market and grow your home care business.

Home health agencies typically use a variety of methods to market themselves. These might include:

  • Asking for referrals – You will need to partner with a practicing physician that agrees to refer patients to you as part of getting a home health care license. However, you can also ask for referrals from family and friends, existing patients, local senior or disability groups, and other health professionals.
  • Creating ads – You can advertise your home health agency through traditional media (such as TV, radio and newspapers), but this may be out of your budget in the beginning. Online and social media ads could be more affordable options for your startup home health agency.
  • Brochures and flyers – A low-tech method, you may be able to leave behind printed materials with doctors, senior centers, and other local organizations (with their permission).
  • Website and social media – Many people check home health agencies online before they decide to use their services. A professional website and business social media accounts can help you begin building trust with potential patients.
  • Getting out in the community – In-person events can be great places to advertise your agency and meet potential patients. Renting a booth at a farmer’s market or community event could be a good place to start.

Insuring Your Home Health Agency

Starting a private home care business in Arkansas may help meet growing demand in your community. And business insurance can help you protect your growing home care business.

BizInsure understands home health agencies. We offer tailored insurance coverage from A-rated insurers that meet the specific needs of those in the home

This information is a general guide only and does not take into account your objectives, financial situation or needs. Always check with your local licensing board when getting or renewing your home health agency license to ensure you are meeting their current licensing requirements.
As with any insurance, coverage will be subject to the terms, conditions and exclusions contained in the policy wording. The information contained on this guide is general only and should not be relied upon as advice. The number of quotes provided varies between products, occupations and other underwriting factors determined by the insurers.
© Copyright 2023 BizInsure LLC, 2015 ALL RIGHTS RESERVED BizInsure LLC; CA DBA: Simple, Smart, BizInsure Insurance Agency LLC; NY DBA: BizInsure Services LLC; NH DBA: Simple, Smart, BizInsure Insurance Agency; PA DBA: BizInsure Services LLC. 2950 Buskirk Ave Suite 300, Walnut Creek CA 94597. License #0H81929

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

Let's find

The coverage you need for your business

Professional Liability Insurance

Professional Liability Insurance

Get a quote

General Liability Insurance

General Liability Insurance

Get a quote

Business Owner’s Policy (BOP)

Business Owner’s Policy (BOP)

Get a quote

Workers Compensation Insurance

Workers Compensation Insurance

Get a quote

This company allowed us an amazing experience, including very efficient, detail-oriented, and patient guidance from their commercial sales agent, Jenifer. I highly recommend this service for anyone in need of a business insurance policy.
Jennifer was very helpful and great to work with.
Very professional, fast and reliable. I appreciate their knowledge and experience. They have made this journey easier for me.
Very easy to renew! Thank you
super quick and easy process!
I am very satisfied with Bizinsure. No regrets
Very professional, easy, and thorough application process.
BizInsure is efficient and price friendly. I definitely reccommend them to anyone. Thank you.
Very easy to work with, cost effective, prompt renewal and easy to get certificates of insurance instantly. I use them exclusively for my professional and general liability insurance needs as a consultant.
Great process and very efficient.
Friendly and very fast service!
Jennifer Whiscombe, is an amazing agent. She was very knowledgeable, thorough and friendly. I highly recommend.
They make it very easy to buy insurance and renew.
As a business owner I love not wasting time. Thank you so much for giving me more time
Very straight forward, the cost of coverage amount made sense, simplicity was appreciated.
Always easy. Thank you.
A Company that is easy to deal with and that I have used for several years. I appreciate the continued support.
Very easy and affordable!
Responsive and professionalCompetitive price. I highly recommend Bizlnsure as an insurance provider
Your service is easy to renew as needed and your company informs the client in advance for renewal.
It has been a pleasure doing business with Biz Insure Llc.Their representatives are very courteous, helpful and customer service oriented.
Quick and easy....
I follow the instructions & would prefer to paid every month. I did not have the options to pay every month.
Thank you, Amy, for making my experience enjoyable and funny. Thank you so much for your kindness!!!
I'm pleased with the business quote I received from Bizinsure LLC. Thank You!
Very satisfied with the online experience
Been a happy customer for years! Easiest company to receive a quote and get insured. No hassles! Easy payment! Finance plans, if needed!
Love it
Every year, BizInsure is my go to for general and professional liability insurance! Thenrates are unbeatable.
The agent was quick and efficient in generating a quote for my needs.
I enjoy working BizInsure they always answer all my questions and make sure i have the correct coverage for my business.
Prompt and professional service from Biz Insure. Thanks Leslie and Liza!
Very easy to sign up for insurance.
Great company
Fast and efficient!
It was great being able to get a policy that suits my company's need in less than 30 minutes. They were vey thorough. Very competitively priced.
js_loader
Google Rating
4.7
Based on 276 reviews
×
js_loader