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

Yes. Tennessee requires a state license to run a non-medical home care agency: the Personal Support Services Agency license, issued by the Tennessee Department of Mental Health and Substance Abuse Services (or Department of Intellectual and Developmental Disabilities). Agencies that provide personal support services (help with self-care, household tasks, or community access) in a client's home need a license. Agencies with 50% or more of clients who are aged or have mental illness apply to the Department of Mental Health and Substance Abuse Services; those serving mostly people with intellectual or developmental disabilities apply to DIDD. Exemptions include people serving one client or only family, housekeeping-only services, and licensed home care organizations.

What are the key facts?

How do you get licensed in Tennessee?

1. Determine the licensing department based on the majority of your client base
2. Submit the application with a written client-base attestation on that department's form
3. List the counties served and where employee and client records are kept
4. Pay the non-refundable licensing fees set in Rule 0940-05-02-.05

What should you confirm with the state?

Personal support services agencies are licensed by the Department of Mental Health and Substance Abuse Services or the Department of Intellectual and Developmental Disabilities, not by the Health Facilities Commission. Confirm the license fee, license term, and whether criminal checks must be fingerprint-based with the licensing department.

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.