Start a Non-Medical Home Care Services Agency in Arkansas
What Is a Non-Medical Home Care Agency Called in Arkansas?
In Arkansas, agencies that provide in-home care services are typically licensed as Home Health Agencies under the Arkansas Department of Health.
These agencies may provide skilled medical services or non-medical personal care services, depending on the type of license issued.
Non-medical home care services include assistance with daily activities that help individuals remain safely in their homes.
Typical services may include:
• companionship
• personal care assistance
• meal preparation
• light housekeeping
• errands and transportation
• medication reminders
These services do not include skilled nursing care unless the agency obtains the appropriate license classification.
Arkansas Home Care Licensing Authority
Home care agencies in Arkansas are regulated by the:
Arkansas Department of Health (ADH)
Division of Health Facility Services
Official website:
https://www.healthy.arkansas.gov
Agencies must comply with the Rules and Regulations for Home Health Agencies in Arkansas.
Class A vs Class B Home Health Licenses
Arkansas issues two types of home health licenses.
Class A License
Class A licenses are issued to agencies that provide:
• skilled nursing services
• therapy services
• Medicare-certified home health services
These agencies operate as medical home health providers.
Class B License
Class B licenses are typically used for non-medical home care services, including:
• personal care
• companionship services
• homemaker services
Entrepreneurs starting a non-medical home care agency usually apply for a Class B license.
Permit of Approval (POA) Requirement
Before applying for a home health license in Arkansas, agencies may be required to obtain a Permit of Approval (POA).
The POA is issued by the:
Arkansas Health Services Permit Agency
This permit determines whether there is sufficient community need for additional home health services in a specific geographic area.
The POA process may require applicants to:
• submit a detailed proposal
• demonstrate community need
• identify the counties they plan to serve
More information can be obtained through the Arkansas Health Services Permit Agency.
Step 1: Choose Your Business Structure
Before applying for licensing, you must establish your legal business entity.
Common business structures include:
• Sole Proprietorship
• Limited Liability Company (LLC)
• Corporation
Many home care entrepreneurs choose an LLC because it provides liability protection and flexible taxation.
Businesses must register with the:
Arkansas Secretary of State
Step 2: Register Your Business in Arkansas
After choosing a business structure, you must register your company with the state.
This typically involves filing:
• Articles of Organization (LLC)
• Articles of Incorporation (Corporation)
You should also verify that your business name is available through the Arkansas business registry.
Step 3: Obtain a Federal Employer Identification Number (EIN)
Most home care agencies must obtain an Employer Identification Number (EIN) from the Internal Revenue Service.
An EIN is used for:
• filing federal taxes
• opening a business bank account
• hiring employees
Apply for an EIN here:
Step 4: Apply for a Class B Home Health Agency License
Once the Permit of Approval is secured (if required), you may apply for a Class B Home Health Agency license through the Arkansas Department of Health.
The licensing application typically requires documentation demonstrating that your agency complies with state regulations.
Common licensing requirements include:
• completed application forms
• agency policy and procedure manuals
• proof of liability insurance
• background checks for owners and employees
• administrator information
• emergency preparedness plans
Office Requirements for Home Care Agencies in Arkansas
Arkansas home care agencies must maintain an administrative office where business operations are conducted and agency records are stored.
The office must allow for:
• secure storage of client records
• employee documentation
• administrative operations such as scheduling and billing
Some agencies begin operations from a home-based administrative office, provided local zoning rules permit home-based businesses.
However, agencies must ensure that:
• records remain accessible for state inspections
• confidential information is securely stored
A virtual office alone may not satisfy recordkeeping requirements if the agency cannot provide access to documents during inspections.
Step 5: Develop Policies and Procedures
Home care agencies must maintain written policies describing how the agency operates.
Typical policy sections include:
• admission and discharge policies
• caregiver qualifications and supervision
• infection control procedures
• abuse reporting procedures
• complaint resolution processes
These policies help demonstrate compliance with state regulations and ensure consistent care for clients.
Step 6: Hire and Train Caregivers
Agencies must recruit qualified caregivers and maintain proper employee documentation.
Typical requirements include:
• caregivers must be at least 18 years old
• criminal background checks
• reference verification
• training documentation
Providing structured training programs helps ensure safe and professional care delivery.
Step 7: Obtain Business Insurance
Insurance helps protect your agency from financial risk.
Common policies include:
• General Liability Insurance
• Workers’ Compensation Insurance
• Professional Liability Insurance
Proof of insurance may be required during the licensing process.
Preparing for the Arkansas State Survey
Before receiving final approval to operate, your agency may undergo a state inspection or survey conducted by the Arkansas Department of Health.
Surveyors evaluate whether the agency complies with licensing regulations.
During the survey, inspectors may review:
Agency Administration
• licensing documents
• organizational structure
• administrator qualifications
Client Records
• care plans
• service agreements
• visit documentation
Employee Files
• background checks
• training documentation
• employment records
Policies and Procedures
• infection control policies
• client rights documentation
• complaint procedures
Agencies should ensure that all documentation is organized and readily accessible before the inspection.
Step 8: Establish Your Office and Begin Marketing
Once licensed, agencies can begin marketing services within their community.
Common marketing strategies include:
• building relationships with healthcare providers
• networking with senior communities
• creating a professional website
• advertising locally and online
Strong referral relationships often become the primary source of new clients for home care agencies.
Resources for Starting a Home Care Agency in Arkansas
Starting a home care agency requires careful planning and compliance with state regulations.
Wise Caregiving provides professional templates and operational resources designed to help entrepreneurs launch and manage home care agencies.
These tools include:
• policy and procedure manuals
• client intake forms
• employee hiring documentation
• caregiver training records
• administrative templates commonly used by home care agencies
OBTAIN THE START-UP FORMS AND DOCUMENTS NEEDED TO SET UP YOUR PERSONAL CARE AGENCY IN THE SHOP BELOW
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