By 2030, California’s senior population will double to 9 million, but the state faces an estimated shortage of 200,000 home health and home care aides. Therefore, it is expected to see many new businesses trying to meet the demand created by this trend. However, obtaining the necessary licenses you need to operate a business in this sector is a taxing process. Here’s a brief introduction to the requirements you must fulfill to start a home care organization business.
Home health agencies provide skilled care and are licensed by the California Department of Public Health (“CDPH”). Home health care is considered a type of medical care and thus must ensure that aides are supervised by a registered nurse or physical, speech, or authorized occupational therapists. On the other hand, the focus of this article is home care organizations, which focus on custodial care, such as arranging nonmedical services and assistance with activities of daily living (“ADLs”) and instrumental activities of daily living (“IADLs”), including bathing, dressing, feeding, exercising, personal hygiene and grooming, transferring, ambulating, positioning, toileting, and incontinence care, assisting with medication that the client self-administers, housekeeping, meal planning and preparation, laundry, transportation, correspondence, making telephone calls, shopping for personal care items or groceries, and companionship.
In California, home care organizations are regulated by the California Home Care Services Bureau (“HCSB”), through regulations in the California Health and Safety Code (Division 2, Chapter 13). Home care organizations employ: Registered home care aides, who must be registered by the HCSB to provide services organized by a home care organization Other professionals, including licensed vocational nurses, registered nurses, therapists, social workers, and community health workers Registered home care aides may be employed by licensed home care organizations, hospice agencies, home health agencies, or other organizations. The Home Care Services Consumer Protection Act, implemented in January 2016, created a public online registry for home care aides who have been background checked. Home care aides employed by home care organizations are called “affiliated” home care aides, and must complete five hours of entry-level training, consisting of two hours of orientation regarding their role as caregiver and 3 hours of safety training including basic safety precautions, emergency procedures, and infection control. They also must complete at least five hours of annual training.
California Home Care Organization Application Process
In order to get a home care license in California and start your home care business, you will need to submit the California home care license application as outlined below along with the application fee. A home care license application with the following forms and documents will need to be compiled and sent to the State of California with a fee of $5,603.00. Researching the California regulations is a must when starting this process of applying for your home care license in California
Section A: Home Care Organization Application Forms:
|A1||HCS 200||Application for a Home Care Organization License|
|A2||HCS 215||Licensee Applicant Information|
|A3||HCS 308||Designation of Home Care Organization Responsibility|
|A4||HCS 309||Partnership/Corporation/Limited Liability Company|
|A5||HCS 402||Employee Dishonesty Bond|
|A6||LIC 508||Criminal Record Statement|
|A7||HCS 9165||Board of Directors Statement|
Section B: Supplemental Documents:
|B1||Partnership Agreement/Articles of Incorporation/Articles of Organization|
|B2||Job Descriptions- Each Position|
|B5||Home Care Organization Program Description|
To complete these required documents and forms, you will first need to choose a name for your home care organization business, and then decide on (best to consult with a CPA for this) how you want your California home care business to be taxed (e.g. corporation or limited liability company/LLC). Business attorneys then can help you properly set up your entity with the state. The application requires that you provide a certificate of general and professional liability insurance in the amount of at least one million dollars ($1,000,000) per occurrence and three million dollars ($3,000,000) in aggregate and a certificate of workers’ compensation policy covering affiliated Home Care Aides. You will also need to create a business plan and determine the location of your California home care business. Before you open for business, you must also obtain local business licensure and make sure you hire the staff you need.
Helpful Resources for Starting your Home Care Business in California
Talk to a Business and Corporations Attorney Today
Carbon Law Group can help you navigate this process of opening your home care organization business! We provide business transactional legal services to business owners in healthcare, home care, tech, non-profits, and more. Call (213) 603-9354 or email [email protected] to discuss your needs with a Los Angeles corporate attorney today.
Judy Yen is an associate in Carbon Law Group’s Los Angeles office. She joined our firm in 2019 and her practice focuses on representing emerging companies in intellectual property and business transactional matters.
Born and raised in Taiwan, Judy is a native speaker of Mandarin Chinese. She has used her international legal experience, language, and bicultural skills to represent businesses and investors from the Greater China region in cross-border business expansion plans and execution in investing in the United States. Prior to joining Carbon Law Group, Judy worked for Paul Hastings LLP in their Shanghai office, where she gained valuable experience in international corporate law, including working on two IPO projects.
Judy is admitted to practice law in California. She graduated from Loyola Law School, Los Angeles in May 2019. In law school, Judy was a member of the Fashion Law Clinic, Transactional Negotiation Team and Entertainment Moot Court. She received her bachelor’s degree in Political Science and Accounting from the University of California, Los Angeles.
Judy grew up in a family of artists and entrepreneurs who had fostered her passion for art and business. She is an avid foodie who loves to both explore cool restaurants and try new recipes at home. She also likes oil painting, swimming, and hiking.