Start a Home Care Agency in Minnesota

A Basic license covers non-hands-on services like homemaking, meal prep, companionship, and medication reminders. A Comprehensive license covers everything in Basic plus skilled nursing, therapy, and hands-on personal care (bathing, dressing, transfers). Download the MDH Statement of Services documents for each license type to see the full list.

Processing time depends on how complete your application is. Once MDH deems an application complete, they have 60 days to issue or deny the temporary license. Incomplete applications are the most common cause of delays — review the checklist carefully and include all required documents.

Not necessarily. If you are only providing housekeeping, meal preparation, and/or shopping (home management services) to individuals unable to perform these activities due to illness, disability, or physical condition, you need a Home Management Registration with MDH — not a full home care license. However, if you offer any other home care services beyond those three, you need a license.

An integrated license allows you to add a Home and Community-Based Services (HCBS) designation to your home care license, enabling you to provide 245D basic support services alongside home care. Important: you must still provide actual home care services to each client — providing only HCBS basic support services does not meet the requirements and will result in license denial or revocation.

As of August 1, 2022, yes. Providers holding a valid license from a health-related licensing board (HLB) who have already undergone a background check under Minn. Stat. §214.075 are not required to complete a separate NETStudy 2.0 background study. This applies to RNs, LPNs, and other HLB-licensed professionals.

No. Medicare certification requires a Comprehensive Home Care license and being found in substantial compliance during the initial full survey. Temporary licensees are also not eligible for Medicare certification.

Some providers regulated by other laws or licensed under separate bodies are exempt (but must still comply with the Home Care Bill of Rights). Excluded providers include those not providing direct home care services or meeting specific statutory conditions. Review Minn. Stat. §144A.471, subdivisions 8 and 9 for the full list.

Minnesota law requires that you deliver at least one qualifying home care service directly in a client's home for a fee during each 12-month license period. If you fail to do so, MDH can refuse to renew your license.

The MDH application fee is $2,100 for a Basic license. Total startup costs typically range from $45,000 to $85,000, which includes licensing fees, general liability insurance ($1M per occurrence), workers' compensation (required for all employees), policies and procedures development, marketing, and 3-6 months of working capital. No surety bond is required.

Minnesota requires general liability insurance at a minimum of $1,000,000 per occurrence and workers' compensation coverage for all employees. Professional liability (errors & omissions) insurance is also strongly recommended. No surety bond is required for home care licensees.

Yes. Minnesota has approximately 950,000 residents over age 65 (16.8% of the population), earning a market rating of 4 out of 5. The state has an exceptionally strong PCA (Personal Care Assistance) Medicaid program that provides reliable referrals and reimbursement. The Minneapolis-St. Paul metro holds the majority of the senior market, and building relationships with Minnesota's established Lutheran and Catholic senior care networks (Ebenezer, Benedictine, Presbyterian Homes) is a proven growth strategy.