Do you need a license to run a home care agency in Arkansas?

Yes. Arkansas requires a state license to run a non-medical home care agency: the Private Care Agency license (Medicaid Personal Care), issued by the Arkansas Department of Health, Health Facility Services. Private care agencies that furnish in-home personal and attendant care for Medicaid clients must be licensed by the Arkansas Department of Health. The rule defines a private care agency as a DHS-certified home and community-based services provider that carries at least $1,000,000 in liability insurance. Licenses run on a calendar year and expire December 31.

What are the key facts?

How do you get licensed in Arkansas?

1. Obtain DHS certification as a home and community-based services provider
2. Carry liability insurance of at least $1,000,000 for employees and contractors
3. Maintain a fully operational primary office in Arkansas
4. Submit the annual license application on Health Facility Services forms
5. Pass a review or inspection before the license is issued

What should you confirm with the state?

The private care agency rule is written for agencies providing Medicaid personal care, so confirm with the Arkansas Department of Health whether a private-pay-only companion agency needs a license. Act 853 of 2025 changed some certification requirements, and the license fee isn't listed in the rule; confirm both with the Department. A fingerprint-based federal check is required only for people who haven't lived in Arkansas continuously for five years.

What should you budget for?

The license fee is a small part of startup cost. Insurance, payroll for your first caregivers before clients pay, and office staff usually cost far more. Use the bill rate calculator to check your pricing covers it, and the intake form and care plan templates for the paperwork inspectors ask to see.