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:

Section Form Number Description
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:

Section Description
B1 Partnership Agreement/Articles of Incorporation/Articles of Organization
B2 Job Descriptions- Each Position
B3 Personnel Policies
B4 Training Plan
B5 Home Care Organization Program Description
B6 Insurance Information

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

https://www.cdss.ca.gov/inforesources/community-care/home-care-services/home-care-org-application-process

https://www.cdss.ca.gov/cdssweb/entres/forms/english/hcs281.pdf

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.

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