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How to start an assisted living facility in Illinois

Illinois requires a Assisted living establishment or shared housing establishment license. Supportive living facilities are a separate Medicaid program run by HFS. from Illinois Department of Public Health, Division of Assisted Living to operate an assisted living facility.

Verified Oct 6, 2026Sources: state agencies, CMS and OIG

License required
YesAssisted living establishment or shared housing establishment license. Supportive living facilities are a separate Medicaid program run by HFS.
Application fee
—
Processing time
—
Homemaker / housekeeping help
$30.80per hour
Organizations in the state
474NPPES, Sep 13, 2026
On this page
Licensing

Illinois assisted living facility license

Illinois requires a Assisted living establishment or shared housing establishment license. Supportive living facilities are a separate Medicaid program run by HFS. from Illinois Department of Public Health, Division of Assisted Living to operate an assisted living facility.

License required
Yes
License
Assisted living establishment or shared housing establishment license. Supportive living facilities are a separate Medicaid program run by HFS.
Renewal
Every year
Medicaid waiver coverage
HHS's 2015 compendium reported that Medicaid does not pay for services in assisted living or shared housing establishments. Medicaid instead covers supportive living facilities through a 1915(c) waiver and the managed LTSS program.
Regulation
Assisted Living and Shared Housing Act (210 ILCS 9); 77 Ill. Adm. Code 295
How to apply

Steps to get licensed in Illinois

In order, as the licensing agency describes the process.

  1. Apply to IDPH's Division of Assisted Living
  2. Complete IDPH's Design and Construction life safety and physical plant survey before licensure
  3. Renew every year
Medicaid

Enrolling as a Illinois Medicaid provider

Program
Illinois Medical Assistance Program (Department of Healthcare and Family Services)
Fiscal agent
None named — HFS runs provider enrollment itself through IMPACT Provider Enrollment Services
Application fee
Federal rule (42 CFR 455.460): the state must collect the CMS application fee from institutional providers that are newly enrolling or re-enrolling; individual physicians and non-physician practitioners are exempt, as are providers already enrolled in (or that already paid the fee to) Medicare or another state's Medicaid/CHIP. CMS set the fee at $750 for calendar year 2026.
Fingerprinting
IMPACT uses CMS's risk levels and sets its own for provider types CMS does not classify; high-risk providers must submit fingerprints and pass criminal background checks before enrollment. DMEPOS suppliers are high risk and must be licensed (or exempt) and accredited by a recognized body. Federal rule (42 CFR 455.434, 455.450(c)): providers the state places in the 'high' categorical risk level, and anyone owning 5% or more of such a provider, must submit fingerprints for a criminal background check.
Site visit
IMPACT does onsite visits before and after enrollment for moderate- and high-risk providers, including at revalidation. Federal rule (42 CFR 455.432, 455.450(b)-(c)): the state must do site visits before and after enrollment for providers in the 'moderate' or 'high' risk levels, and any enrolled provider must allow unannounced on-site inspections.
Revalidation
HFS restarted revalidation in IMPACT in rolling stages from September 3, 2024; providers revalidate through the 'Provider Revalidation List' in IMPACT and may be asked for more documents. Federal rule (42 CFR 455.414): every enrolled provider must be revalidated at least once every 5 years.

Full Illinois Medicaid enrollment guide →

Certificate of need

Does Illinois require a certificate of need?

CON program
Yes
Program
Certificate of Need permit (Illinois Health Facilities Planning Act)
Services covered
  • hospitals
  • ambulatory surgical treatment centers
  • skilled and intermediate long-term care facilities (nursing homes)
  • ID/DD and MC/DD skilled and intermediate care facilities
  • Specialized Mental Health Rehabilitation Act facilities
  • kidney disease treatment centers / freestanding hemodialysis
  • state-operated hospitals, nursing homes, surgery and dialysis centers

Illinois certificate of need details →

Labor

Illinois wage floor

State minimum wage
$15.00 an hour
Effective
2025-01-01
Scheduled increases
No scheduled change found in the official sources reviewed.
Direct-care wage floor
Department on Aging homemaker rates were raised to $30.80/hour from 2026-01-01 to sustain a minimum wage of $18.75/hour for direct service workers (after $17 in 2024 and $18 in 2025).
Rate pass-through
In-home service providers must certify they pay the mandated wage increase, and may not cut fringe benefits (paid time off, training pay, health insurance, travel) in response to the rate increases.
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.
Market

Illinois market size

Counts from federal public files: NPPES (active organization NPIs), CMS Care Compare and CMS Medicaid enrollment.

Assisted living facilities — active organization NPIs (NPPES)
474 (as of Sep 13, 2026)
Total Medicaid and CHIP enrollment (latest reported month)
2,932,625 (as of Jun 1, 2026)
Rates

What Illinois Medicaid pays

Home care & personal care: published Illinois fee-for-service rates, each linked to its source.

ServiceCodeIllinois ratePer hourRank
Homemaker / housekeeping helpAgency providerS5130$30.80per hour$30.805 of 9
Respite care (hourly)Agency providerT1005$25.00per hour$25.0020 of 38
Adult day servicesClinical nurse specialistS5100$16.84per hour$16.84—

All Illinois Home care Medicaid rates, ranked →

Waivers

Illinois HCBS waivers

Medicaid home and community-based services programs that may pay for this service.

  • Adults with Developmental Disabilities Waiver (1915(c))
  • Persons with Brain Injury Waiver (1915(c))
  • Residential Waiver for Children and Young Adults with Developmental Disabilities (1915(c))
  • Support Waiver for Children and Young Adults with Developmental Disabilities (1915(c))
  • Persons who are Elderly Waiver (1915(c))
  • Persons with HIV or AIDS (1915(c))
  • Medically Fragile, Technology Dependent Waiver (1915(c))
  • Persons with Disabilities Waiver (1915(c))
  • Supportive Living Program Waiver (1915(c))

Illinois waivers and waiting lists →

FAQ

Frequently asked questions

Do you need a license to start an assisted living facility in Illinois?

Illinois requires a Assisted living establishment or shared housing establishment license. Supportive living facilities are a separate Medicaid program run by HFS. from Illinois Department of Public Health, Division of Assisted Living to operate an assisted living facility.

Does Illinois require a certificate of need for an assisted living facility?

Illinois has a certificate of need program covering: hospitals, ambulatory surgical treatment centers, skilled and intermediate long-term care facilities (nursing homes), ID/DD and MC/DD skilled and intermediate care facilities, Specialized Mental Health Rehabilitation Act facilities, kidney disease treatment centers / freestanding hemodialysis, state-operated hospitals, nursing homes, surgery and dialysis centers. Check whether your service is on that list.

How do you become a Medicaid provider in Illinois?

Enroll through IMPACT (Illinois Medicaid Program Advanced Cloud Technology) provider enrollment system (https://hfs.illinois.gov/impact.html), run by None named — HFS runs provider enrollment itself through IMPACT Provider Enrollment Services.

What does Illinois Medicaid pay a assisted living facility?

Illinois Medicaid pays $30.80 per hour for homemaker / housekeeping help, effective Jul 1, 2026, ranking 5 of 9 states.