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How to start a skilled nursing facility in Iowa

Iowa requires a Nursing facility license from Iowa Department of Inspections, Appeals, and Licensing (DIAL), Health Facilities Division to operate a skilled nursing facility. Fee: Statutory license fee under Iowa Code chapter 135C; amount not restated in the rule.

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

License required
YesNursing facility license
Application fee
See details
Processing time
—
Nursing home stay (daily rate)
$278.25per day
Organizations in the state
747NPPES, Sep 13, 2026
On this page
Licensing

Iowa skilled nursing facility license

Iowa requires a Nursing facility license from Iowa Department of Inspections, Appeals, and Licensing (DIAL), Health Facilities Division to operate a skilled nursing facility. Fee: Statutory license fee under Iowa Code chapter 135C; amount not restated in the rule.

License required
Yes
License
Nursing facility license
Fee
Statutory license fee under Iowa Code chapter 135C; amount not restated in the rule.
Certificate of need
Required
Medicare certification
Separate from the state license. The state survey agency runs an unannounced standard health survey, a Life Safety Code survey and an emergency-preparedness survey against 42 CFR Part 483 Subpart B. For a Medicare SNF the state certifies and the CMS Location decides Medicare participation; for a Medicaid-only NF the state's certification is final and the state Medicaid agency decides participation.
Regulation
481 IAC 58 (rule 58.3) and 481 IAC 61; Iowa Code chapters 135C and 135
How to apply

Steps to get licensed in Iowa

In order, as the licensing agency describes the process.

  1. Obtain Health Facilities Council approval (certificate of need) for the beds under Iowa Code chapter 135
  2. Submit a letter of intent and a written résumé of the resident care program
  3. Apply on department forms (at least 60 days before a change of ownership)
  4. Submit floor plans and front/side elevation photographs
  5. Obtain a state fire marshal certificate of fire-safety compliance
  6. Pay the statutory fee and pass inspection
  7. For Medicare/Medicaid, complete federal certification and enroll with Iowa Medicaid
Documents

What you need to submit

5 documents listed by the licensing agency.

Document
Letter of intent
Résumé of resident care program
Floor plans (8½ × 11)
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Medicaid

Enrolling as a Iowa Medicaid provider

Program
Iowa Medicaid (Iowa HHS) — IA Health Link managed care
Fiscal agent
Iowa Medicaid Enterprise (IME) Provider Enrollment Unit (state-run; no separate fiscal agent named on the enrollment page)
Application fee
Iowa charges institutional providers the fee when enrolling for the first time, adding a practice location or re-enrolling. Its fee table lists which provider types pay and whether the fee goes to Medicare or to Iowa Medicaid (for example, residential care facilities and ICF/ID pay Iowa Medicaid). 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
Iowa names newly enrolling home health agencies and DMEPOS suppliers (and those adding a practice location) as high risk and subject to fingerprinting; under its 2026 strategy some HCBS providers flagged by risk indicators can be raised to high risk. 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
Iowa does pre- and post-enrollment site visits for moderate-risk providers but skips them when Medicare or another state screened the provider at moderate risk in the past 12 months. 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
Iowa says providers revalidate every five years. Its 2026-2028 revalidation strategy, sent to CMS, revalidates high-risk providers first from July 1, 2026, then past-due providers, sending notices in waves. Federal rule (42 CFR 455.414): every enrolled provider must be revalidated at least once every 5 years.

Full Iowa Medicaid enrollment guide →

Certificate of need

Does Iowa require a certificate of need?

For this business
Required (licensing source)
CON program
Yes
Program
Certificate of Need
Services covered
  • hospitals
  • health care facilities as defined in Iowa Code 135C.1 (nursing facilities, ICF/ID, ICF for persons with mental illness)
  • organized outpatient health facilities
  • ambulatory surgical centers
  • community mental health facilities
  • new or relocated institutional health facilities and changed institutional health services, including mobile health services

Iowa certificate of need details →

Labor

Iowa 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.
Market

Iowa market size

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

Skilled nursing facilities — active organization NPIs (NPPES)
747 (as of Sep 13, 2026)
Medicare/Medicaid-certified nursing homes (CMS Care Compare)
387 (as of Aug 1, 2026)
Total Medicaid and CHIP enrollment (latest reported month)
674,521 (as of Jun 1, 2026)
Rates

What Iowa Medicaid pays

Skilled nursing facilities: published Iowa fee-for-service rates, each linked to its source.

ServiceCodeIowa ratePer hourRank
Nursing home stay (daily rate)Physician or licensed psychologist$278.25per day——

All Iowa Skilled nursing Medicaid rates, ranked →

FAQ

Frequently asked questions

Do you need a license to start a skilled nursing facility in Iowa?

Iowa requires a Nursing facility license from Iowa Department of Inspections, Appeals, and Licensing (DIAL), Health Facilities Division to operate a skilled nursing facility. Fee: Statutory license fee under Iowa Code chapter 135C; amount not restated in the rule.

How much does a skilled nursing facility license cost in Iowa?

Statutory license fee under Iowa Code chapter 135C; amount not restated in the rule.

Does Iowa require a certificate of need for a skilled nursing facility?

Yes, according to the licensing source. Iowa's CON program covers: hospitals, health care facilities as defined in Iowa Code 135C.1 (nursing facilities, ICF/ID, ICF for persons with mental illness), organized outpatient health facilities, ambulatory surgical centers, community mental health facilities, new or relocated institutional health facilities and changed institutional health services, including mobile health services.

How do you become a Medicaid provider in Iowa?

Enroll through Iowa Medicaid Provider Enrollment Unit (Universal Provider Enrollment Application 470-0254); Iowa Medicaid Portal Access (IMPA) for enrolled providers (https://hhs.iowa.gov/medicaid/provider-services/provider-enrollment), run by Iowa Medicaid Enterprise (IME) Provider Enrollment Unit (state-run; no separate fiscal agent named on the enrollment page).

What does Iowa Medicaid pay a skilled nursing facility?

Iowa Medicaid pays $278.25 per day for nursing home stay (daily rate), effective Jul 1, 2026.