How to start a home health agency in California

California requires a Home Health Agency (HHA) license from California Department of Public Health, Licensing and Certification Division — Centralized Applications Branch to operate a home health agency. Fee: An application fee applies under Health and Safety Code section 1266; the amount is not printed on the HHA initial application page.

License required

Yes

License

Home Health Agency (HHA) license

Issuing agency

California Department of Public Health, Licensing and Certification Division — Centralized Applications Branch

Fee

An application fee applies under Health and Safety Code section 1266; the amount is not printed on the HHA initial application page.

Medicare certification

The same CDPH packet covers state licensure and federal certification; Medicare applicants include CMS 855A, CMS 1561, CMS 1572 and HHS 690.

Regulation

Health and Safety Code § 1725 et seq. (incl. § 1728.1); 22 CCR § 74600 et seq.; SB 164 (Ch. 27, Stats. 2026) moratorium

1. Since June 29, 2026 (SB 164 moratorium), first submit a written exception request with documentation showing need based on geographic concentration
2. If CAB finds need, it notifies the applicant that an application may be filed
3. Assemble the packet using CDPH's Provider Instructions and HHA Provider Checklist
4. Submit fingerprints (Live Scan) for each person with a 5% or greater ownership interest
5. Mail the completed packet to the Centralized Applications Branch (not to a district office)

Staffing

• HSC 1728.1 requires an administrator, administrator designee, director of patient care services (DPCS) and DPCS designee
• Changes in these positions must be reported within 10 business days

Program

Medi-Cal

Enrollment portal

Provider Application and Validation for Enrollment (PAVE)

Fiscal agent

California MMIS Fiscal Intermediary (claims/billing); fee-for-service enrollment itself is done by the DHCS Provider Enrollment Division (PED)

Application fee

DHCS charges $750 for applicable applications submitted in calendar year 2026, paid by EFT inside PAVE (or cashier's check for paper applications). DHCS exempts individual practitioners and physician and non-physician practitioner groups. 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

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

For managed care network providers that a plan screens itself, DHCS requires the plan to repeat post-enrollment site visits at least every five years for moderate-risk and every three years for high-risk providers (APL 22-013). 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

Revalidation requests come through PAVE. In June 2026 DHCS told CMS it would run a risk-based two-year campaign to revalidate high-risk providers early, beyond the federal schedule. Federal rule (42 CFR 455.414): every enrolled provider must be revalidated at least once every 5 years.

Full California Medicaid enrollment guide →

CON program

No

California certificate of need details →

Model

hybrid

State vendor

Sandata (CalEVV)

Services in scope

• personal care
• home health

Alternate EVV allowed

Yes

Program

https://www.dhcs.ca.gov/providers-partners/california-electronic-visit-verification/

California EVV requirements →

State minimum wage

$16.90 an hour

Effective

2026-01-01

Scheduled increases

Rises to $17.40 on 2027-01-01 (annual CPI adjustment).

Direct-care wage floor

SB 525 health care worker minimum wage covers licensed home health agencies (and skilled nursing facilities owned or controlled by a hospital or integrated system); independent SNFs, residential care and congregate living health facilities are not covered. Rates are tiered by facility type; for the residual 'all other covered health care facilities' tier the minimum is $23.00/hour from 2026-07-01, rising to $25.00 on 2028-07-01.

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.

Home health agencies — active organization NPIs (NPPES)

8,569 (as of Sep 13, 2026)

Medicare-certified home health agencies (CMS Care Compare)

3,213 (as of May 27, 2026)

Total Medicaid and CHIP enrollment (latest reported month)

11,659,421 (as of Jun 1, 2026)

All California Home health Medicaid rates, ranked →