How to start an adult day care center in Texas
Texas requires a Day Activity and Health Services (DAHS) facility license (formerly adult day care); a licensed nurse must oversee services from Texas Health and Human Services Commission, Long-Term Care Regulation to operate an adult day care center.
- License required
- YesDay Activity and Health Services (DAHS) facility license (formerly adult day care); a licensed nurse must oversee services
- Application fee
- —
- Processing time
- —
- Personal care / attendant care (hourly)
- $4.57per 15 min · $18.28/hr
- Organizations in the state
- 1,064NPPES, Sep 13, 2026
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Texas adult day care center license
Texas requires a Day Activity and Health Services (DAHS) facility license (formerly adult day care); a licensed nurse must oversee services from Texas Health and Human Services Commission, Long-Term Care Regulation to operate an adult day care center.
- License required
- Yes
- License
- Day Activity and Health Services (DAHS) facility license (formerly adult day care); a licensed nurse must oversee services
- Medicaid waiver coverage
- Licensed DAHS facilities may contract with HHSC to serve Medicaid clients; HHS (2014) also reported coverage under STAR+PLUS. Title XX funds also pay for DAHS.
- Regulation
- 26 TAC ch. 559 (DAHS Requirements); 26 TAC ch. 560; 26 TAC ch. 52 (contracting); Human Resources Code ch. 103
Enrolling as a Texas Medicaid provider
- Program
- Texas Medicaid and CHIP (Texas Health and Human Services Commission, HHSC)
- Enrollment portal
- Provider Enrollment and Management System (PEMS), run by TMHP
- Fiscal agent
- Texas Medicaid & Healthcare Partnership (TMHP), the claims administrator for HHSC
- Application fee
- Under the ACA, institutional providers owe an application fee on initial applications, new practice locations, revalidation and re-enrollment. PEMS says at the end of the application whether a fee is due, and the application cannot be processed without it. Proof of a fee paid to Medicare or another state must be submitted with the application. The amount changes each calendar year. Under the federal rule (42 CFR 455.460), institutional providers pay the CMS application fee when they first enroll, re-enroll or revalidate. The fee is $750 for calendar year 2026. Individual physicians and non-physician practitioners do not pay it. A fee already paid to Medicare or to another state's Medicaid program counts.
- Fingerprinting
- Under federal rules (42 CFR 455.434 and 455.450), the state places provider types in 'limited', 'moderate' or 'high' risk levels. High-risk providers, and anyone who owns 5% or more of one, must submit fingerprints for a criminal background check. The TMHP provider manual section we reviewed does not list a separate state fingerprint process.
- Site visit
- Under federal rule (42 CFR 455.432), the state must visit moderate- and high-risk providers before and after enrollment. Every enrolled provider must allow unannounced on-site inspections. TMHP's manual notes that moderate- and high-risk providers cannot bill for a new practice location until it is approved and added to the enrollment record.
- Revalidation
- Revalidation is due by the end of the enrollment period, called the 'revalidation due date'. Most providers have a five-year period, but some get shorter periods based on risk or other factors. Revalidation is filed online in PEMS only, opens up to 180 days before the due date, and repeats provider screening. It is not complete until every deficiency is resolved. If the period ends first, TMHP automatically disenrolls the provider. Group administrators can revalidate for their performing providers.
Does Texas require a certificate of need?
- CON program
- No
Texas wage floor
- State minimum wage
- $7.25 an hour
- Effective
- 2009-07-24
- Scheduled increases
- No scheduled change found in the official sources reviewed.
- HCBS 80/20 rule
- Federal baseline: 42 CFR 441.302(k) requires the state to show that each provider spends at least 80% of Medicaid payments for homemaker, home health aide and personal care services under 1915(c) waivers on direct care worker pay and benefits. Compliance starts 2030-07-09 (for managed care, the first rating period starting on or after that date); annual payment-adequacy reporting under 441.311(e) starts 2028-07-09. A state may set a lower share for state-defined small providers and exempt providers facing hardship, each only through a public notice-and-comment process. The eCFR text has not changed since 2024-07-09. No state-published 80/20 implementation step (small-provider criteria, hardship exemption or reporting guidance) was found for this state in the official sources reviewed.
Texas market size
Counts from federal public files: NPPES (active organization NPIs), CMS Care Compare and CMS Medicaid enrollment.
- Adult day care clinics/centers — active organization NPIs (NPPES)
- 1,064 (as of Sep 13, 2026)
- Total Medicaid and CHIP enrollment (latest reported month)
- 3,915,559 (as of Jun 1, 2026)
What Texas Medicaid pays
Home care & personal care: published Texas fee-for-service rates, each linked to its source.
| Service | Code | Texas rate | Per hour | Rank |
|---|---|---|---|---|
| Personal care / attendant care (hourly)Agency provider | T1019 | $4.57per 15 min | $18.28 | 27 of 27 |
| Homemaker / housekeeping helpAgency provider | G0744 | $17.40per hour | $17.40 | 9 of 9 |
| Companion careAide or attendant | $44.17per 8-12 hour shift | — | — | |
| Respite care (hourly)Agency provider | M0143 | $23.29per hour | $23.29 | 25 of 38 |
| Respite care (daily)Agency provider | G0100 | $390.78per day | — | 10 of 34 |
Texas HCBS waivers
Medicaid home and community-based services programs that may pay for this service.
- TX Community Living Assistance & Support Services (CLASS) Waiver (1915(c))
- TX Deaf Blind with Multiple Disabilities Waiver (1915(c))
- TX Home and Community-Based Services (HCS) Program Waiver (1915(c))
- TX Home Living Program Waiver (1915(c))
- TX Medically Dependent Children Program (MDCP) Waiver (1915(c))
- Texas Healthcare Transformation and Quality Improvement Program (1115)
- TX Youth Empowerment Services (YES) Waiver (1915(c))
Frequently asked questions
Do you need a license to start an adult day care center in Texas?
Texas requires a Day Activity and Health Services (DAHS) facility license (formerly adult day care); a licensed nurse must oversee services from Texas Health and Human Services Commission, Long-Term Care Regulation to operate an adult day care center.
Does Texas require a certificate of need for an adult day care center?
No. Texas has no certificate of need program.
How do you become a Medicaid provider in Texas?
Enroll through Provider Enrollment and Management System (PEMS), run by TMHP (https://www.tmhp.com/topics/provider-enrollment), run by Texas Medicaid & Healthcare Partnership (TMHP), the claims administrator for HHSC.
What does Texas Medicaid pay a adult day care center?
Texas Medicaid pays $4.57 per 15 min for personal care / attendant care (hourly), effective Sep 1, 2025, ranking 27 of 27 states.