Selling a home care agency in Arizona

Home health: the buyer needs its own license

ADHS licenses home health agencies as health care institutions. Under A.R.S. § 36-422, if a change of ownership is planned, the current licensee must notify the ADHS director in writing at least 30 days before it takes place, and the new owner may not begin operating the agency until the director issues a license to the new owner.

In practice, that means the buyer's license application and the closing are tied together. Buyers usually submit the application as soon as terms are agreed, and the purchase agreement makes the issued license a closing condition.

Non-medical home care and ALTCS

Arizona does not license non-medical home care, such as personal care, companion, and homemaker services, at the state level. Agencies that bill Medicaid still have to meet AHCCCS provider requirements and the terms of their contracts.

The Arizona Long Term Care System, part of AHCCCS, delivers home and community-based services including home health, licensed health aide services, homemaker, personal care, day care, habilitation, and respite. For agencies with ALTCS revenue, buyers look at contracts with the program contractors, authorization stability, and how concentrated revenue is.

What moves value for an Arizona agency

The items buyers price most heavily in Arizona:

Licensing path

ADHS license timing for the buyer of a home health agency.

ALTCS contracts

Program contractor relationships and authorization history.

Caregiver supply

Fill rate, turnover, and background check files.

Private pay book

Private pay and long-term care insurance share, which supports margin.