How to Start a Home Health Care Business in Illinois

Starting a home health care business in Illinois can be both rewarding and profitable. Many people in the state, especially seniors and those with health needs, prefer to receive care at home. This creates a high demand for personalized services, making Illinois a great place to start this type of business.

The Illinois home health care market is experiencing significant growth, with the state's population projected to increase by 10% by 2030, and the 60+ age group expected to represent 25% of the population. This demographic shift creates substantial opportunities for starting a successful home care business in Illinois.

Essential Steps to Launch Your Illinois Home Health Care Agency

1. Understanding Illinois Home Health Care Licensing Requirements

Before you can legally operate a home health care business in Illinois, you must obtain the proper licensing from the Illinois Department of Public Health (IDPH). Illinois distinguishes between different types of home care services, each requiring specific licenses:

• Home Health Agency License: Required for skilled nursing services and at least one other home health service (physical therapy, occupational therapy, speech therapy, home health aide services)
• Home Services Agency License: Required for non-medical services like personal care and assistance with daily activities
• Home Nursing Agency License: Required for medical services provided at home

2. State-Specific Licensing Process

You'll need a Home Health Agency license from the Illinois Department of Public Health (IDPH) to legally operate. This license ensures that your business complies with Illinois regulations for providing home health care services.

The licensing process in Illinois involves several critical steps:

Application Requirements

• Complete the initial licensing application
• Submit required attachments including qualification review forms for administrators, supervisors, and nursing staff
• Provide copies of current Illinois licenses for applicable employees
• Pay the appropriate licensing fee (ranging from $25 for single home health license to $1,500 for home nursing or home services agency licenses)

Timeline and Process

The Illinois Department of Public Health conducts an initial review of your application within 30 days of submission. The complete application must be approved within 90 days, or it may be denied. Upon approval, IDPH issues a provisional license valid for 240 days, during which an on-site survey must be conducted to determine compliance.

3. Establishing Your Business Structure

Most home health care agencies in Illinois operate as Limited Liability Companies (LLCs) because this structure provides protection against personal liability. You'll need to:

• Register your business with the Illinois Secretary of State
• Obtain an Employer Identification Number (EIN) from the IRS
• Secure appropriate business insurance coverage
• Establish business banking accounts

4. Developing Comprehensive Policies and Procedures

Illinois requires home health agencies to maintain detailed policies and procedures that comply with state and federal regulations. These must include:

• Patient admission and discharge procedures
• Clinical protocols and care plans
• Staff training and qualification requirements
• Emergency procedures and protocols
• Quality assurance measures
• Health Care Worker Background Check compliance

Consider using professionally developed Illinois-specific policy and procedure manuals to ensure compliance with state requirements.

5. Meeting Staffing and Qualification Requirements

Illinois has specific qualification requirements for key personnel in home health agencies:

Administrator Qualifications

• Bachelor's degree in health services administration, nursing, or related field, OR
• Current Illinois RN license with two years of supervisory experience in home health care

Supervising Nurse Requirements

• Current Illinois registered nurse license
• Minimum one year of nursing experience
• Supervisory experience preferred

Background Check Requirements

All employees must undergo comprehensive background checks as required by the Healthcare Worker Background Check Act. This includes:

• Illinois State Police criminal history check
• FBI fingerprint-based background check
• Illinois Department of Public Health Health Care Worker Registry check

6. Financial Planning and Startup Costs

Starting a home health care business in Illinois requires significant upfront investment. Typical startup costs include:

Expense Category	Estimated Cost Range
Licensing Fees	$25 - $1,500
Initial Application and Legal Costs	$5,000 - $15,000
Office Space and Equipment	$10,000 - $25,000
Insurance Coverage	$15,000 - $30,000 annually
Staff Recruitment and Training	$20,000 - $40,000
Marketing and Business Development	$10,000 - $25,000
Working Capital (3-6 months)	$50,000 - $100,000

7. Understanding Revenue Potential

Illinois home health care agencies can achieve significant revenue through various payment sources:

Medicare Reimbursement Rates

According to the Illinois Department of Healthcare and Family Services, typical reimbursement rates include:

• Skilled nursing visits: $72.00 per visit
• Physical therapy evaluation: $72.00 per visit
• Occupational therapy: $72.00 per visit
• Speech therapy: $72.00 per visit

Private Pay Market

The private pay market in Illinois offers competitive rates, with home care services averaging $22.32 per hour in Chicago as of August 2025. This represents opportunities for agencies serving private-pay clients alongside Medicare and Medicaid beneficiaries.

8. Pursuing Medicare Certification

To maximize revenue potential, most Illinois home health agencies pursue Medicare certification through the Centers for Medicare & Medicaid Services (CMS). This process involves:

• Completing CMS Form 855A for Medicare provider enrollment
• Undergoing accreditation through approved organizations like The Joint Commission or ACHC
• Passing Medicare compliance surveys
• Meeting all federal Conditions of Participation

Note that Illinois home health agencies must be licensed by the state before receiving Medicare certification.

9. Marketing and Business Development

Successful Illinois home health agencies focus on building relationships with:

• Hospital discharge planners and case managers
• Physician practices and medical specialists
• Insurance companies and managed care organizations
• Community organizations and senior centers
• Rehabilitation facilities and skilled nursing facilities

Why Choose CarePolicy.us for Your Illinois Home Health Care Business

Starting a home health care business in Illinois can be complex, but CarePolicy.us makes it simple. We provide comprehensive Illinois-specific application checklist kits and professionally developed policy manuals that ensure compliance with all state requirements.

Our services include:

• State-specific policy and procedure manuals
• Complete licensing application assistance
• Expert consultation services
• Employee handbooks and training materials
• Ongoing compliance support

Don't navigate the complex Illinois licensing process alone. Let CarePolicy.us guide you through every step of starting your home care agency in Illinois with confidence and compliance.

Learn more about CarePolicy's Illinois licensing consultation services and how we can support your agency's success from startup through ongoing operations.

Conclusion

The Illinois home health care market presents tremendous opportunities for entrepreneurs willing to navigate the regulatory requirements and invest in quality services. With proper planning, adequate funding, and the right support resources, your home health care business can make a meaningful difference in the lives of Illinois residents while building a profitable enterprise.

Remember that success in the home health care industry requires dedication to quality care, regulatory compliance, and continuous professional development. Partner with experienced consultants and utilize proven resources to maximize your chances of success in this rewarding healthcare sector.

For more detailed guidance on starting your Illinois home health care business, explore our comprehensive state-specific licensing guide and discover how CarePolicy.us can support your entrepreneurial journey in the healthcare industry.