Starting a Home Health Agency in Arizona: What to Know About ADHS Licensing

Starting a home health agency in Arizona can be an exciting venture for healthcare entrepreneurs looking to make a difference in their communities. However, navigating the regulatory process with the Arizona Department of Health Services (ADHS) can be complex and time-consuming—especially for new providers.

At SummitRidge, we support founders and operators from idea to licensure. Here's a general overview of what you can expect when launching a home health agency in Arizona.

Understanding What a Home Health Agency Is in Arizona

In Arizona, a home health agency is a licensed provider that delivers skilled nursing and therapeutic services in patients' homes. Services may include:

• Skilled nursing

• Physical, occupational, or speech therapy

• Home health aide support

• Medical social services

To legally operate, you must first obtain a home health agency license through the ADHS Bureau of Residential Facilities Licensing.

To legally operate, you must first obtain a home health agency license through the ADHS Bureau of Residential Facilities Licensing.

The Arizona Department of Health Services (ADHS) serves as the state’s regulatory body for healthcare facilities and providers, ensuring that agencies meet the necessary health, safety, and operational standards. Licensing is not simply a formality—it's a comprehensive process governed by state law, and failure to comply can result in application rejection, fines, or future enforcement actions.

ADHS Licensing Structure for Home Health Agencies

In Arizona, home health agencies are licensed under the Arizona Administrative Code (A.A.C.), Title 9, Chapter 10, Article 11, which outlines the core requirements for:

• Administrative functions

• Personnel qualifications

• Service delivery

• Clinical documentation

• Infection control

• Quality assurance

• Emergency preparedness

To meet the state's expectations, agencies must demonstrate not only intent to serve patients safely—but actual readiness to operate in accordance with the A.A.C.

What the ADHS Licensing Process Includes

The licensing process includes multiple detailed components:

1. Licensing Application (Initial)

ADHS requires submission of a complete application packet, which must include:

• Ownership structure (including all individuals with controlling interest)

• Administrator and clinical director qualifications

• Site location and business information

• A detailed services list (skilled nursing, therapy, aides, etc.)

• Fingerprint clearance for each controlling person

• Payment of nonrefundable licensing fees

2. Compliance with Physical Office Requirements

The agency must have a designated administrative office in Arizona that meets specific criteria, including:

• Secure record storage

• Proper signage

• Accessibility for ADHS surveyors

• Basic utilities and infection control provisions (even for administrative-only offices)

Remote or virtual-only offices are not permitted for licensed home health operations in Arizona.

3. Policy and Procedure Manual

One of the most critical parts of the licensing process is the development of a policy and procedure manual that aligns with A.A.C. standards. This document must outline your agency’s operations in exact terms, such as:

• Patient admission and discharge processes

• Staff supervision and delegation protocols

• Medication administration policies

• Incident reporting

• Advance directives and patient rights

• Infection prevention and control practices

• Clinical documentation timelines

These policies will be reviewed closely during the licensing process and assessed during future surveys.

4. Survey Readiness and Inspection

Once the application is processed and preliminarily approved, ADHS will schedule a pre-licensure survey (inspection). This on-site review includes:

• Examination of records, forms, and logs

• Interview of the administrator and clinical staff

• Walk-through of the physical site

• Review of your policies in action

• Emergency preparedness compliance

• Infection control protocols

The agency must pass the survey before a license is issued. Surveyors will provide a report of any deficiencies that must be corrected before final approval.

Post-Licensure Compliance

After licensure, the agency must:

• Renew its license annually before expiration

• Report significant changes (ownership, location, services, etc.) to ADHS in advance

• Maintain compliance with all applicable state regulations

• Cooperate with unannounced inspections or complaint investigations

• Keep all staff credentials, in-service training, and operational documentation up to date

Failure to comply with these standards may result in corrective action, monetary penalties, suspension, or even license revocation.

Key Steps to Opening a Home Health Agency in Arizona

While every agency has unique goals, here are the foundational elements involved in starting up:

1. Business Formation & Planning

Before you begin the licensing process, you’ll need to establish your business structure (LLC, corporation, etc.), obtain a tax ID, and define your service model. A solid business and staffing plan is crucial.

2. Determine Facility Location & Service Area

ADHS requires a physical administrative office located in Arizona. The address must meet zoning requirements and be suitable for record storage, staff training, and administrative work.

3. Prepare and Submit the Licensing Application

The ADHS application process involves multiple components, including:

• Ownership disclosure

• Staffing structure and qualifications

• Policy and procedure documentation

• Background checks and fingerprint clearance

• Fee payment

Incomplete or inconsistent submissions often result in delays or denials.

4. Policy and Procedure Manual

You’ll need a comprehensive set of policies and procedures that comply with Arizona Administrative Code (AAC) regulations specific to home health. This includes:

• Patient rights

• Infection control

• Admission/discharge criteria

• Clinical care documentation

• Emergency preparedness

This is a critical area where many first-time applicants need professional assistance to get it right the first time.

5. Survey and Final Approval

Once your application is reviewed, ADHS may conduct a pre-licensure survey to assess your readiness. This includes evaluating your administrative setup, reviewing documentation, and ensuring compliance with staffing and patient care protocols.

Only after successfully passing the survey will your home health license be issued.

Optional: Medicare Certification

If you intend to serve Medicare beneficiaries, you’ll also need to undergo a federal certification process through CMS, which includes a separate survey and additional requirements such as:

• Compliance with the Conditions of Participation (CoPs)

• OASIS data submission

• Emergency preparedness planning at the federal level

Many agencies choose to apply for state licensure first, then pursue Medicare certification once operational.

Why Work with SummitRidge?

Launching a healthcare agency is more than paperwork — it’s a legal, operational, and strategic process. At SummitRidge, we provide end-to-end startup consulting for home health and hospice providers across Arizona.

We help with:

• Licensing applications to ADHS

• Policy and procedure creation tailored to Arizona regulations

• Office readiness and mock survey preparation

• Staff compliance and documentation setup

• Medicare certification consulting (if applicable)

Ready to Start Your Arizona Home Health Agency?

Avoid costly mistakes and application delays. Let SummitRidge guide your agency through the ADHS startup process from day one.

Contact us today to schedule a consultation and take your first step toward building a compliant, successful home health agency in Arizona.