Starting a home health care business in Michigan could be an extremely rewarding venture for those who are passionate about helping and supporting people through their health journey. If you’re interested in starting a home health agency in Michigan, there are specific licensing and regulatory requirements that need to be considered, as well as the costs associated with launching a business of this calibre, such as staffing, licensing, insurance, and marketing.


In this article, we’ll guide you through starting a home health agency in Michigan, focusing on the specific licensing and regulatory requirements, costs associated with starting a home health business, and the necessary steps to establish your policies and procedures. By the end of this article, you should have a solid understanding of what it takes to start a successful home health agency in Michigan.

Is Owning a Home Health Care Business in Michigan Profitable?

One of the most common questions that potential business owners ask when considering starting their own home health care business is whether it is profitable. Profit and autonomy are significant drivers for entrepreneurs, so knowing whether your own home care business can be profitable is crucial.

Fortunately, Michigan’s home health care industry is growing rapidly, which is exciting for business newcomers. According to the U.S. Bureau of Labor Statistics, healthcare occupations and those associated with healthcare are projected to account for most of Michigan’s 20 fastest-growing occupations from 2019 to 2029 [01]. Additionally, the home health care industry is projected to reach a market value of $180 billion by 2026 [02].

Michigan’s aging population is also on the rise, which is good news for those considering starting a home health care business. According to the Michigan Department of Health and Human Services, Michigan residents aged 65 and older are projected to grow from 1.2 million in 2020 to 1.7 million in 2040. [03] This indicates a growing demand for home health care services in the state.

Of course, the profitability of your home health agency in Michigan will depend on several factors, including the size of your business, the types of home health agencies services you provide, and your pricing strategy. However, with the right plan and approach, owning a home health care business in Michigan can be a profitable and rewarding venture.

Caregiver and client laughing outside

Steps to Starting a Home Health Care Agency in Michigan

Starting a home health care agency in Michigan can be a lucrative business opportunity. However, before you can start providing care to clients, there are several essential steps you need to take.

Here are seven steps to help guide you through the startup process.

1) Create a Business Plan

Creating a solid business plan is the first step in starting any business, including a home health care agency in Michigan. Your business plan should outline your business goals, strategies, and operational procedures. It should include information about:

  • the types of services your agency will provide,
  • your target market,
  • a competitive analysis,
  • financial projections,
  • a marketing plan,
  • and other important details that will influence your agency’s success.

A well-crafted business plan is essential for any entrepreneur looking to start a home health agency. It serves as a roadmap for your home care business, providing a clear vision of your agency’s objectives and how you plan to achieve them. Your business plan can also help you identify potential challenges and opportunities and make informed business decisions in the future.

A solid business plan is also valuable for investors and lenders to understand the viability of your home health care business and its potential for success.

For more information on how to become a home health care provider in Michigan, structure and create the perfect home health care business plan, visit our article: 8 Steps to a Successful Home Care Business Plan.

2) Choose a Business Structure and Register Your Business

To do business in Michigan as a home health care agency, you must register your business by choosing an appropriate legal structure and obtaining a Tax ID Number and NPI Number.

Choosing the right legal structure is important to protect yourself legally. There are different types of legal business structures to choose from, including LLC, corporation, or sole proprietorship. While a sole proprietorship is the most straightforward and most affordable legal structure to set up, it does not offer personal liability protection. When starting a home health agency, seeking legal structures that provide personal liability protection is recommended.

Consulting with a lawyer or accountant can help you select the best legal structure for your home health agency in Michigan. They can provide you with valuable advice and assist you in setting up the right structure for your home care agency.

Business owner

3) Obtain the Proper License

In Michigan, obtaining a full home care license to operate a home care business is mandatory. The process of obtaining a home health care license can be quite extensive, and therefore, we recommend contacting the Michigan Department of Licensing and Regulatory Affairs for more information. Different licenses depend on the type of home health care business you plan to operate.

The license fee for an initial application is $1,000.00, with annual license renewal fees of $500.00. The license fee for a change of ownership is also $1,000.00.

4) Get Insurance

Insurance is a major factor to consider when you’re a business owner. Liability insurance coverage can prevent you from being liable for accidents or injuries on the job with clients or your own staff. Insurance in the health care field is essential when offering medical services to individuals. You want to ensure all your bases are covered and protect your business.

5) Develop Policies and Procedures and Other Requirements

Before applying for your home health care license in Michigan, one thing to consider is developing appropriate policies and procedure manuals. These manuals are essential for your staff, the state’s office (Michigan policies), and your business.

Defined by the Michigan Department of Licensing and Regulatory Affairs, “a policy is a principle or a predetermined course of action to guide decision making. A procedure describes a method to carry out a policy and often includes a series of steps. The policies and procedures submitted by the agency represent a sampling of the policies and procedures necessary to direct all administrative, personnel, and client care operations of the agency as required by the Public Health Code.”

For more information, visit the FAQ page on the Michigan Department of Licensing and Regulatory Affairs website.

6) Hire Staff

As a home health care agency business startup, you may wonder when it’s the right time to start hiring staff. You won’t be able to do all the work alone. Many clients require 24/7 care services, and one person cannot do the job independently. That is why hiring reliable staff to support you when you need a break or are too busy to handle the workload is essential.


Generally, consider hiring staff when you are beginning to get more clients than you can handle. This will ensure you provide all of your clients with the best quality of care while you keep up with the demand for your services. Additionally, you may want to consider hiring staff if you plan to expand your service offerings or take on larger contracts.

Before hiring staff, ensure you have the necessary resources to support their employment, including a solid financial plan, appropriate insurance coverage, and a comprehensive training plan. By hiring the right people at the right time, you can truly develop your home health care agency while providing high-quality care to your clients.

For more information on hiring and retaining the right staff and caregivers, visit our recent blog post.

7) Market Your Home Health Care Agency

Marketing is a crucial component of the success of all home health care agencies. We encourage a business owner to always develop a clear marketing plan prior to startup. Though we want to offer up several strategies, you can use to market your agency in Michigan in this day and age. Here are a few you could try:

Develop a strong online presence: Establish a professional website and social media accounts, like Facebook, Twitter, and Instagram, to promote your home health care agency’s services and engage with potential clients. Emphasize an easy-to-navigate website, customer testimonials, and showcasing your home care agency and services online.

Network with local healthcare providers: Building relationships with physicians, hospitals, and other healthcare providers in your community is crucial. Attend local healthcare events and conferences to introduce your agency and services to other practitioners and stakeholders.

Attend community events: Participate in local community events and consider sponsoring a health fair to raise awareness about your agency and home health services, connecting with potential clients and healthcare providers.

Leverage referral marketing: Encourage satisfied clients to refer friends, family, and acquaintances to your agency. Consider offering incentives and establishing referral relationships with healthcare providers by introducing your agency and services.

Offer exceptional customer service: Consistently providing high-quality care and excellent customer service is always the best marketing strategy to establish your home health care agency as a trusted and reliable personal care provider.

For a complete guide on home care marketing, visit our recent article.

Franchising Opportunities in Michigan

Starting a home health agency from scratch can be time-consuming and costly, but franchising can provide an established brand and support system. Nurse Next Door offers a franchise program that includes thorough training, ongoing support, and access to various tools and resources to help operate your business effectively.

With a well-established brand reputation, owning a Nurse Next Door franchise can make it easier to attract new clients and contribute to the success of your medical or non-medical home care business in Michigan.

The home health industry is a rewarding and meaningful career path. Whether you choose to franchise or not, it’s essential to provide high-quality care and excellent customer service to your clients.

If your values align with Nurse Next Door’s core values of Admiring People, WOW Customer Experiences, Finding Better Ways, and being Passionate About Making A Difference, consider franchising with Nurse Next Door in Michigan.

Founded in 2001, Nurse Next Door offers seniors compassionate and personalized in-home health care services.

Learn more about franchising opportunities in Michigan today!