How to Start an Adult Care Agency
The percentage of adults in the United States over the age of 65 has grown at an exponential rate over the past few decades and is expected to continue to grow. As a result, the demand for adult home care has also increased faster than the supply. If you are considering opening an adult home health care center, you should follow a number of steps to make sure that your agency complies with all state regulations.
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Instructions
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Determine what type of adult care agency you wish to start. Adult care falls into two general categories: medical and nonmedical care. As the name implies, a medical adult health care agency provides skilled nursing services as well as basic care, while a nonmedical adult care agency focuses on basic services, such as meal preparation, cleaning and daily living assistance. Also of importance is whether you will be providing services at the client's home or at a facility operated by your agency.
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Research your state laws and regulations to determine what type of licensing you must obtain to start your adult care agency. State laws vary, but you will be required to obtain some type of licensing in every state. An agency where you provide nonmedical services at the client's home is the easiest to license. Any time medical services are provided, you are held to a higher licensing and oversight standard. Additionally, if you run a facility, you must obtain a number of fire, health and safety and zoning approvals, among other legal issues. A state agency on aging or the state department of health is a good place to start.
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Decide what type of business entity your agency will be. For example, you may wish to incorporate, form a limited liability corporation or form a partnership. Complete the necessary paperwork and register with the Secretary of State in the state where you plan to operate the business.
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Apply for an Employer Identification Number (EIN) with the Internal Revenue Service. You may apply online through the Internal Revenue Service website (see Resources).
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Complete the required application for licensing after you have determined what is required. You will also likely need to obtain liability insurance as well as submit to a thorough background screening at some point in the process.
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Tips & Warnings
You may also wish to look into the possibility of purchasing a franchise agency. The start-up costs and requirements may be easier to manage if you team up with a national or local franchise.
