Start a Non-Medical Personal Services Agency in Indiana

What Is a Non-Medical Home Care Agency Called in Indiana?

In Indiana, a non-medical home care agency is called a Personal Services Agency (PSA).

Personal Services Agencies provide non-medical assistance to individuals who need help living safely in their homes.

These services support seniors, individuals with disabilities, and others who require help with daily activities but do not require skilled nursing care.

Typical services provided by a Personal Services Agency may include:

• assistance with personal hygiene and grooming
• companionship and supervision
• meal preparation
• light housekeeping
• transportation and errands
• assistance with daily living activities

These services do not include skilled medical care, such as nursing services or therapy.

Is a License Required to Start a Home Care Agency in Indiana?

Yes. Indiana is a regulated state for non-medical home care services.

Agencies must obtain a Personal Services Agency (PSA) license before operating.

Licenses are issued by the:

Indiana Department of Health (IDOH)

Official website:
https://www.in.gov/health

Operating a Personal Services Agency without a license in Indiana is prohibited.

Indiana Administrative Rules for Personal Services Agencies

Personal Services Agencies in Indiana operate under:

Indiana Administrative Code 410 IAC 17

These regulations establish requirements for:

• agency licensing
• employee qualifications
• background screening
• service agreements
• agency policies and procedures
• client protections

Understanding these regulations is essential when preparing your licensing application.

Step 1: Choose Your Business Structure

Before applying for a Personal Services Agency license, you must establish your legal business entity.

Common business structures include:

• Sole Proprietorship
• Limited Liability Company (LLC)
• Corporation

Many entrepreneurs choose an LLC because it provides personal liability protection and flexible taxation.

Businesses must register with the:

Indiana Secretary of State

https://www.in.gov/sos

Step 2: Register Your Business in Indiana

After choosing a business structure, you must register your business 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 Indiana business search system.

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:

https://www.irs.gov

Step 4: Apply for a Personal Services Agency License

To legally operate a home care agency in Indiana, you must apply for a Personal Services Agency license through the Indiana Department of Health.

Application information can be found through the Indiana Department of Health licensing portal:

Indiana Department of Health – Personal Services Agency Licensing
https://www.in.gov/health

Applicants should carefully review the licensing packet and administrative code requirements before submitting the application.

Your application must demonstrate that your agency meets the state’s regulatory requirements.

Typical licensing requirements include:

• completed application forms
• agency policies and procedures
• administrator information
• proof of liability insurance
• employee background check procedures
• service agreement templates

The state will review the application and supporting documentation before approving the license.

Office Requirements for Personal Services Agencies in Indiana

Indiana regulations require Personal Services Agencies to maintain an administrative office where business records are maintained.

The office must allow the agency to:

• maintain client records
• store employee documentation
• manage scheduling and administrative operations

Some agencies begin operations with a home-based administrative office, provided local zoning rules permit operating a business from a residential address.

The agency must ensure that:

• client records remain secure
• documentation is available for inspection by the Indiana Department of Health

Virtual offices may be used for mailing purposes but should not replace secure recordkeeping.

Step 5: Develop Policies and Procedures

Indiana requires Personal Services Agencies to maintain written policies describing how the agency operates.

Typical policy sections include:

• admission and discharge procedures
• caregiver supervision policies
• abuse reporting procedures
• infection control policies
• complaint resolution procedures

These policies help demonstrate compliance with state regulations.

Step 6: Hire and Train Caregivers

Personal Services Agencies must recruit qualified caregivers and maintain employee documentation.

Typical requirements include:

• caregivers must be at least 18 years old
• criminal background checks
• reference verification
• documented training and orientation

Training programs should include topics such as:

• personal care assistance
• safety procedures
• infection prevention
• emergency response

Step 7: Obtain Business Insurance

Insurance protects your agency and your clients.

Common insurance policies include:

• General Liability Insurance
• Workers’ Compensation Insurance
• Professional Liability Insurance

Proof of insurance may be required during the licensing process.

Preparing for the Indiana State Survey

The Indiana Department of Health may conduct inspections to verify that your agency is operating in compliance with state regulations.

During a survey, inspectors may review:

Agency Administration

• licensing documents
• organizational structure
• administrator qualifications

Client Records

• service agreements
• care plans
• visit documentation

Employee Files

• background checks
• training documentation
• employment records

Policies and Procedures

• infection control policies
• abuse reporting procedures
• complaint procedures

Agencies should ensure that all documentation is organized and accessible during inspections.

Cost to Start a Home Care Agency in Indiana

The cost of starting a Personal Services Agency in Indiana varies depending on business setup and operational expenses.

Common startup costs may include:

• business registration fees
• state licensing fees
• liability insurance coverage
• caregiver recruitment and training
• website development and marketing
• administrative documentation and policies

Many agencies choose to use professional templates and operational documents to organize their business quickly and meet licensing requirements.

Step 8: Establish Your Office and Begin Marketing

Once licensed, you can begin marketing your services in your community.

Common marketing strategies include:

• networking with healthcare providers
• building relationships 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.

Indiana Medicaid Provider Enrollment Pathway

After obtaining a Personal Services Agency license, some agencies choose to enroll as a Medicaid provider in order to serve Medicaid waiver clients.

Medicaid home and community-based services in Indiana are administered through:

Indiana Family and Social Services Administration (FSSA)

These programs may include services such as:

• personal care assistance
• attendant care
• home and community-based waiver services

To become a Medicaid provider, agencies must typically:

• obtain a valid Personal Services Agency license
• complete Medicaid provider enrollment
• meet Medicaid program standards
• submit additional documentation for approval

Medicaid enrollment information can be found here:

Indiana Medicaid Provider Enrollment
https://www.in.gov/medicaid/providers

Medicaid enrollment requirements and timelines may vary depending on the program.

Many agencies begin operations as private-pay providers first, then apply for Medicaid enrollment once they have established operations.

Resources for Starting a Personal Services Agency in Indiana

Starting a home care agency requires careful planning and proper documentation.

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

Indiana State Department of Health (IDOH)Contact Information:

Indiana Department of Health (IDOH):

Address: 2 North Meridian Street
Indianapolis, IN 46204
Phone: (317) 233-1325
Website: https://www.in.gov

Division of Acute Care:

Address: Indiana Department of Health
Division of Acute Care
2 North Meridian Street, 4D
Indianapolis, IN 46204
Phone: (317) 233-7442
Email: [email protected]

⭐ Get Indiana PSA Startup Forms, Policies & Manuals

If you want professionally developed, state-compliant documents that save weeks of work:

CLICK HERE TO OBTAIN PERSONAL SERVICES AGENCY BUSINESS START-UP MATERIALS

Includes:
✔ Indiana-specific Policies & Procedures Manual
✔ Admission, intake, discharge & service agreement forms
✔ Caregiver files & staffing requirements
✔ Background check & screening templates
✔ Administrative checklists
✔ Compliance documentation
✔ And more

OBTAIN A FREE START-UP CHECKLIST HERE