Home health care is a rapidly expanding industry in California. The Employment Development Department (EDD) notes that the home health care industry already generates more than $10 billion in annual revenue in our state. You may be thinking about purchasing a home health care company—either to add to your existing business or to get into the industry.
When buying or acquiring a home health care agency in California, it is imperative you understand the licensing requirements. You should apply for your license before you purchase the company. Our Bay Area home health care agency attorney explains what you need to know about home health organization licenses and purchasing these businesses in California.
Understanding the Licensing Requirement: Home Health Care Agencies in California
As of January of 2016, all home health care agencies that operate in California must comply with the Home Care Services Consumer Protection Act. Among other things, the law requires that all home health care organizations in the state must be properly licensed. If you do not have the appropriate home health care license, it is unlawful for you to operate the business. Licensing is a major consideration when you buy/acquire a home health care business.
You Cannot “Buy” a Home Health Care License in California
In California, obtaining a license to operate a home health care service is not as simple as purchasing an existing business. Buying a home health care business in California does not mean that you automatically get access to its license to operate.
All individuals interested in entering this industry must be prepared to apply for their own license or be prepared to complete a required waiting period. Licensing is an issue that you should address before you finalize the purchase of a home health care business.
You do not want to end up in a situation whereby you effectively buy the debt of a home health care business and a few relatively low value assets, without getting access to the license that you need to operate the company.
Protect Yourself: Consult with a Business Lawyer who has Home Health Care Experience
Buying a business is complicated—especially so in California’s highly regulated home health care industry. It is imperative that any deal that you enter is structured properly—with licensing sorted out before the transaction is finalized. Do not go it alone. When venturing into the home health care industry in California, it is crucial to engage a knowledgeable business lawyer with industry-specific experience. Your attorney will understand the complexities of licensure, issues of regulatory compliance, and the ins and outs of the business transfer processes.
Contact Our Bay Area Home Health Care Business Law Attorney Today
Lynnette Ariathurai is a commercial lawyer with the unique skills and experience to handle the issues facing home health care agencies. If you have any questions about health care licenses and the purchase of a home health care company, please contact us today for a fully private consultation. From our Fremont office, our firm serves home health care agencies across the Bay Area.