Assisted Living Directory Article

How To Open an Assisted Living Facility

 

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Home » How To Open An Assisted Living Facility
How to open an assisted living facility
Summary: This is one of the more common questions we receive. Unfortunately, there is not one 'formula' for opening an assisted living facility, as the laws, procedures and licensure vary from state-to-state, but there are some things that you might want to consider.
Written by: The staff at Assisted Living Directory

We receive a lot of emails about assisted living. Some we can answer with confidence, and others, maybe not so much. Unfortunately, the assisted living market is not cut-and-dried or cookie-cutter by any means. One of the questions we get from time to time is "How do I open an assisted living facility?" This is one of those questions that has a lot of gray area, and many items to consider. Procedures may also vary from state to state. We have to say that we (Assisted Living Directory) have never opened an assisted living facility, but we have done a bit of research and we have some suggestions and direction. Of course, anyone who has had experience with opening a facility is encouraged to chime in using the comment form at the bottom of this page!

Starting a facility is a complicated process without doubt. It is also a difficult market to break into and actually be successful in, as this is one of the fastest growing industries around. By opening a facility, you are sure to have plenty of competition in the next few years as our baby-boom generation begins to "settle down." The first question you might ask yourself is about your intentions - Do you want to start a facility just to make money, or do you have a genuine desire to help people? If you answer yes to the first part, you may want to reconsider. This is a very, very exhausting and complicated industry, and if your head isn't in the game for the right reasons, your clients or residents will surely be able to tell. You will need to be able to deal well with sickness, dementia, confused residents, combative family members, and even death. Do what you love, and the money will follow - at least that's how the saying goes!

So now that you have done your soul-searching and are comfortable with what to expect being an assisted living owner or Facility planning can be a complicated processadministrator, the fun stuff begins - licensing and certification! Most states have some pretty strict rules governing the assisted living and long term care industries within their borders, and you will most likely have to go through a pretty detailed licensing and certification process. Unfortunately, this is not a one-size-fits-all process - and one state's procedures may be wildly different from the next. However, I have found that if you visit a state's government website, the usually have a search function that you can use to find licensing information.

I went to the State of Colorado's website, and typed in "Assisted Living Licensing" and came to this page: http://www.cdphe.state.co.us/hf/static/lic_cert.htm

On this page, at the bottom, you will see a place where you fill out a letter of intent and mail it to an address provided. On the Colorado website, it was listed as:

If you are interested in applying for licensing or for certification, please send a letter of intent form to the following address:

Facility Licensing Application
Colorado Department of Public Health and Environment, HFEMS
4300 Cherry Creek Drive South
Denver CO 80246-1530

As we mentioned, each state is different, and you may have to jump through different hoops to get the answers you need. I imagine that by just simply calling someone in the Department of Health sections of the state website, they can point you in the right direction. Again, this is not an absolute for every state. Finding this information for your location may require a slightly different strategy. You will most certainly need to already have the property and have it inspected before you can obtain a license, so if you are just in the planning phases, you will need to consider the licensing requirements as you develop your facility.

Once you have an idea on what it will take to get your license, you may need to develop your business plan if you haven't already done so. This may be something you do before the previous step, depending on where you are, and if you have a property in place. How do you plan to make money? How many residents do you want to care for? What disabilities will you be able to manage? Do you think that you can hire the appropriate staff to care for a resident with advanced Alzheimer's? What do you charge for - is it a flat-fee for services, or do you charge extra for added services? You will also need to think about medical equipment, handicap access, doing monthly inventory on your supplies and food, and also figure out your labor costs. How many staff will you employ and at what rate? Will you have a marketing budget for your facility? What about a web presence - Do you plan to develop a website to get the word out on the internet? There are plenty of great books out there on how to write a successful business plan - Amazon would be a good first stop. Your library will most certainly have workbooks on this as well.

So now you have your plan, your licensing questions addressed, and your vision in place for your assisted living facility - but perhaps you don't have a location - a physical place to bring your dreams to realization. This is where you will probably need a realtor to help you - a good one who is familiar with commercial real estate, and hopefully has had experience with assisted living or long-term care facilities. Purchasing an existing building that has already had the legwork done may be a great way to save money and your precious time. However, starting from scratch may be your only option - purchasing a home and then building the physical amenities, handicap ramps and the like into the structure. You'll need to make sure your home or building meets zoning laws and requirements.

Once all of the above steps (and others that we may have missed) have been completed, you will need to get a business license from your city, and a tax ID number. Your facility will most certainly need to employ a good accountant to keep your records spotless!

Being a new business is difficult - the uncharted waters and pitfalls can be cause for a great deal of anxiety. You don't have to go at it alone, though. There are plenty of local groups, trade organizations, and national sites that you can refer to, or even better - join! We recommend that you network as much as possible to gain maximum exposure, and to also reap the benefits of being around others who are going through, or who have gone through the process of opening up an assisted living facility.

The steps above are in no way complete - there will most certainly be a number of curve balls that come your way during the process - much like purchasing a home. There may be radon in the basement of your home just as you might discover that your facility has a leaky roof, or doesn't adhere to zoning laws. Our number one recommendation is to get professional help - accountants, advisors, and legal counsel - don't do it all alone. We do hope that this page serves as a 'nudge' in the right direction for you. If you do get through the process and start your own facility, we would love to hear about it. In the meantime, we wish you a 'congratulations' on your venture as a caregiver!

- by the staff at Assisted Living Directory

Responses to this article:

Marlo Wrote:
Does anyone have any info on grants to start up an assisted living facility? Marlo mrssmith04@yahoo.com
30 June 2009 at 6.43 pm

Alicia Wrote:
hi, My name is Alicia and i am very interested in opening a elderly care facility in Palm Coast Florida. I am having a difficulty finding informoation to start things off. Tips and pointers would be highly appreciated. I would like to know more about liscencing and how to prepare the home.
Thank you. alicia alicia_berent@hotmail.com
30 June 2009 at 2.56 pm

Mrs. Precious Wrote:
My partners and I are trying to open a ALF in Texas. We all work in a nursing home now and we all have one thing in common, we love what we do. Can you point us in the right direction for gov. grants to open our dream? Precious mrs_precious_johnson@yahoo.com
23 June 2009 at 4:52 pm

Kazoua Wrote:
Over the past 4 years working within and hands on providing care to the elderly it has been a passion of mine to start my own ALC to help the elderly. I would like to know about funding assistance and government grants available to help me get started? Kazoua lee.kazoua@ymail.com
21 June 2009 at 10:29 pm

Natacha Wrote:
My name is Natacha and I live in West Palm Beach Florida. All I have is my license and a burning desire to help others. I want to know how to start to open an ALF? How do I write a business plan? How do I get Start up funds? Are there really Government funds available? I would be very grateful for any help,or advice anyone can give me ...Thanks...I may be reach @561-699-3568 Natacha natachapeuguero@yahoo.com
20 June 2009 at 5:28 pm

Laura Wrote:
Hello I am a nurse and really enjoy working w/ the elderly. I would like to know if there's any government grants/funding out there for opening a nursing home in florida laura mlata2006@yahoo.com
20 June 2009 at 4:10 am

Peggy Wrote:
Hello I;m Peggy from Fort Myers looking to open up my own A.L.F. in Naples area. Could I please get some information on Gov. grants.
19 June 2009 at 12:38 pm

Rene Wrote:
Hello, my name is Rene, my mother got Azheimer 1 years ago, my dreams is to help her and others people and I would like to know how can I get started to open a residential ALF for 6-8 beds in Miami Florida, Thanks
reneilla23@hotmail.com
15 June 2009 at 9:38 pm

Janet Wrote:
I am also interested in the availability of goverment grants and financial assistance for ALCs. Janet janet_64@comcast.net
9 June 2009 at 12:03 pm

Irina Wrote:
Hi I'm looking to open home based senoir care i IL about 6 bed could anyone give me an advise Thanks Irina nlazzar@aol.com
9 June 2009 at 10:29 pm

Ousman Wrote:
Hello, My name is Ousman and I recently moved from Alaska to Raleigh, NC. I was an owner and administrator of an assisted living home and would like to open a home in Raleigh, NC. My concern is where to get placement for the home. In Alaska I was licensed for adults with developmental disabilities.
Thank you. Ousman ousmanhannah@gmail.com
6 June 2009 at 5:18 pm

Anita Wrote:
I'm a nurse and use to be a foster parent. I would like to open an assisted living home in Texas. could someone tell me about any grants available and how to get started on this.

Thanks
Anita bradford1966@live.com
4 June 2009 at 7:38 pm

Andy Wrote:
Is it true that you can't have more than 5 patients? Does anyone know (in Florida), what are the room size dimensions to have 2 patients in 1 room? Thank you! Andy apine001@gmail.com
4 June 2009 at 12:50 pm

Earnestine Wrote:
my associate and i would like to start an assisted living facility we need iformation on how to get started with assistance from government grants and fundings from sponsers earnestine earnestine_watson@yahoo.com
28 May 2009 at 12:50 pm

Toni Wrote:
Very Helpful site - Looking for funding for an AL center in Northwestern PA. I already have a building just need grants that are available out there to help me get it going. Any help would be wonderful and thank you. Toni tonidesteelerfan@yahoo.com
21 May 2009 at 2:52 pm

Pamela Wrote:
Does anyone have any information for opening a ALF in Houston, Tx? 6-8 beds. Pamela pbaines2@att.net
20 May 2009 at 12:35 pm

Stephanie Wrote:
Hello' and Thank you so much for your website it has helped me a great deal, my concern is if it's ok to start an assistant living business in a home for rent only the owner is not willing to sale the house but it fits perfectly for me and my clients to-be any suggestion? Stephanie
20 May 2009 at 12:33 pm

Assisted Living Directory Wrote:
Geonna, Thank you for your great note - I am thrilled that our site has helped you. Best of luck in your venture!
20 May 2009 at 7:26 am

Geonna Wrote:
Hello :) , I found more info in your couple paragraphs than the whole internet. :-) It was very much needed and the perfect boost to get me on my way mentally! Im in the process of 5 bed ALF. And your website has help tons! Thank you again! Any suggestions on loans/grants? Geonna gewhite1986@yahoo.com
19 May 2009 at 7:05 pm

Ginger Wrote:
Hi, my name is Ginger and I am currently finishing the LPN program and I was wondering if a person needs to have there RN to own a assistant living facility. I am trying to get some information on everything but first need to know if RN is required. I am planning on going for RN but would like to get the facility started before. Any suggestions? gingersnap73@gmail.com
17 May 2009 at 8:20 pm

Kim Wrote:
i want to open a nursing home how do I get started all the way down to funding. Kim renica7306@msn.com
16 May 2009 at 8:44 pm

John Wrote:
I have being working for with MH/MR population for over 13 years and I want to move my career to the next level by setting up a group home for 4 clients. I need advice on how to find seed money for this venture and how to set the program. John jonkayjohnk@yahoo.com
5 May 2009 at 11:24 am

Andrine Wrote:
Hello all, I am looking into building a 14 bed facility to house and care for our dementia/Alzheimers residents. I love our seniors and believe that I and the great team I put together can care for this population in every way. I would like to know if there are grants for this type of business? I am eager to get started. Andrine andrine83@yahoo.com
3 May 2009 at 1:24 pm

Kathleen Wrote:
I am looking into opening an 10 bed ALF 4 memory loss clients in MN and keep running into brick walls. dose anyone know where i can find building code spec's,licensing info or any other useful info im just in planing/gathering stage. Thank you Kathleen kclarkmn@yahoo.com
2 May 2009 at 9:06 am

Aretha Wrote:
I am planning to open a Al in palm bay FL, and is in need of all the information i can gather on getting started, arethasimon@bellsouth.net
29 April 2009 at 9:41 am

Ann Wrote:
Hi my name is Anne I have been a RN for 20 years . I have been dreaming about an AL or group home facility. I love helping people in need of assistance,especially the elderly and the mentally ill. I live in pa. I was wondering about grants to help with start up cost . Any info. would be very helpful.
Ann elnagiebm@yahoo.com
26 April 2009 at 7:37 pm

David Wrote:
My name is David Balber, AIA, USGBC, NCARB and I am the managing principal of David Balber Architecture, LLC. We are a full service architecture firm based out of Tampa, FL. My advice to anyone thinking about starting an assisted living facility (or any other architectural project for that matter) would be to actually contact my office to set up a free consultation. We offer free consultations because each project is so entirely different that it wouldn’t make sense to start charging people if we didn’t even know what the project would entail. Basically at the consultation (either face-to-face or via phone) we would determine how far along you are in your pursuits and what needs to happen to get to the next level. I usually like meeting with people once they have a site selected. What usually follows after that is that I would ask you to bring in a survey of your land. We would have done some preliminary (also free) code research to find out some of our standard questions related to codes, zoning, setbacks, etc. Then once we meet we will talk about the scope of the project…meaning the programmatic requirements you have for the facility (i.e. how many rooms, special suites, eating halls, etc. are needed). After the free consultation I will come up with a proposal to do whatever work I deem necessary based on how far we got in the meeting. Most times when a project is brand new and the owner recently purchased the land, the first service I would recommend from my firm would be to create 2 or 3 “feasibility” studies. These studies would basically be rough concepts based on the parcel of land and the governing codes we would need to abide by. Some people would refer to this stage as “schematic design”. After this stage we would move to the next stage called “design development”…where we would select a concept and fully develop it until you, the owner, would be completely satisfied with it. After this stage we would take a “timeout” and I would print out a set of floor plans and elevations so that you could get your financing in place from the bank as well as get preliminary building quotes from contractors. The steps go on and on and I would be more than happy to answer anyone’s specific questions. Please feel free to contact me directly at: david@davidbalberarchitecture.com

To learn more about our award-winning firm please visit us on the web at: www.davidbalberarchitecture.com
David Balber Architecture, LLC
david@davidbalberarchitecture.com
22 April 2009 at 2:38 pm

Diane Wrote:
I have been a RN for 15 years and hopefully my husband will finish nursing school in May. We have been dreaming about an AL or group home facility. I love people in genuine need of assistance,especially the elderly and the mentally ill. I live in Al. and am very interested in starting my own business. I was wondering about grants to help with start up cost . Any info. would be very helpful. Diane mawilkins@centurytel.net
15 April 2009 at 4:30 pm

Irma Wrote:
HI MY NAME IS IRMA AND I AM WANTING INFORMATION ON STARTING A PERSONAL CARE HOME IRMA RIOS lilcookie1952@yahoo.com
13 April 2009 at 9:35 pm

Joe Wrote:
Debbie,
Who do I call or where do I go to even get licensed in Arizona. Could you or someone please point me in the right direction. Joe Formernyr@aol.com
8 April 2009 at 4:50 pm

Gabriela Wrote:
Hi, I have a assisted living in Palm Coast,fl We need some help in advertising and marketing??? gabriela 3864371122
2 April 2009 at 6:05 pm

Toya Wrote:
what are some of the threats and opportunities of opening an assisted living facility in Ft. Myers, FL? Toya tsevier@siu.edu
22 March 2009 at 10:32 pm

Debbie Wrote:
Are there any grants that are for Assisted Living homes? I live in arizona and want to open a home. i have my license but am looking for the funding in way of grants. i managed an Assisted Living home and its very rewarding. i love caring for the elderly. Any info would about grants would be appreciated Thank you Debbie debbiesgotu2@aol.com
21 March 2009 at 9:04 pm

Assisted Living Directory Wrote:
Hi Pamela,
You can list your facility by going to this page www.assisted-living-directory.com/list-yours.cfm
11 March 2009 at 8:23 am

Pamela
We have taken all the necessary steps to opening our home, waiting for the final state inspecton. We need some help in advertising and marketing??? I read in one of the comments David wrote to Susan, " Make sure to list on our site". How do we go about doing just that? Thank you for your time. I can be reached at 480-293-4865
10 March 2009 at 9:41 pm

Terry
Hi my name is Terry I am a nurse and am wanting to open an AL in Bradenton, Fl. I do care about people. I was wondering about start up funds, are there government grants available? Terry terrich84@yahoo.com
10 March 2009 at 8:27 pm

Manny
Good afternoon my name is Manny, I am planning to open an ALF in South Florida, I was reading your article and you kind of threw me off a little when you mentioned the procedures I thought that I have to have the property and inspected through all means before I can obtain a license; thanks for your help, Manny. rodr1964@gmail.com
9 March 2009 at 10:23 am

Liana
Hello, my name is Liana and i would like to know how can i get started to open a residentail alf for 6-8 beds in miami Florida, thanks Liana Liana LianaRivera001@aol.com
8 March 2009 at 11:21 pm

Fred T.
fred t. i own a afch in hernando county fl. this info has been helpful i am doing the app. for alf 10 beds i am already zoned for 14 residents but could use some help in the process if anyone has experience thanks fred turn1934@bellsouth.net
4 March 2009 at 7:08 am

Diane
I want to offer top quality care to 6-12 people. I am motivated by the poor care my mother has been recieving. I have been a nurse for 30+ years and would like to offer my experience and care to this group of people. My husband is retiring soon and we would like to venture into this field. We will contact our state Lic bureau in NH. diane nh4neb@msn.com
3 March 2009 at 11:31 am

Shakita
how do i get started to open a assistant living home for 6 to 8 beds?where do i go to get my license and clients? york,pa shakita shakitahandy@yahoo.com
21 February 2009 at 6:53 pm

Gislaine
Your site has been extremly helpful. My plan is to open a 40 bed unit in atlanta ,GA. I want to do this , because I enjoying caring for the elderly. Millions of senior citizens go through life not knowing that someone truly cares for them . Though I am just one person , I want to provide a helping hand to the senior citizens of this country and around the world.
Gislaine - gbforgod@yahoo.com
19 February 2009 at 9:55 am

Toy
hi i plan open an Acf for 40 bed in PA. Thanks for the information. I have been RN many years, with lots of experience with elderly, my passion in caring.
6 February 2009 at 2:37 pm

Lakeisha
HelloEveryone my name is Lakeisha D. and I am planing to open a 6 bed facility in Orlando, Florida. I am very intrested in speaking with Robert K. the consultant from Orlando to obtain more information in reference to the licensing process, or any one else who is local and does not mind sharing some helpful information.
Thank you to all for your time and input. Lakeisha
6 February 2009 at 5:06 am

Judi B.
We have a 44 unit motel in Naples, Florida. The Fairways is truly a beautiful Old Florida Motel that has been kept up. The tropical Gardens is breath taking. What are the steps and requirements to take on such an endever? Judi Bautista fairwaysresort.com
4 February 2009 at 5:56 am

E Wrote:
The article was very helpful although i still have questions. if anybody could help i would appericate that very much.My email is caringhan09@ yahoo.com.
1 January 2009 at 2:57 pm

Jacquie Wrote:
I am planning to open an assisted living/independent living facility of about 134 units total my desire is to give the elderly a resort like feel every day for the rest of their lives a sort of garden of Eden feel....I am not trying to get rich just want to help make life for them as comfortable and enjoyable as possible.
Thanks for the info it was very helpful. I am looking for help on writing my business plan Jacquie
22 December 2008 at 6:27 am

Robert K Wrote:
I am a consulant, my Company is Nations Elder Care Development Orlando Florida, We offer services for Licensing & establishing new 6 bed ALFs in Florida
12 December 2008 at 1:45 pm

Assisted Living Directory Wrote:
Hi Holly,
Thank you for your comment, and best of luck in your endeavor to open a facility. I really appreciate your input.
David
17 November 2008 at 8:55 pm

Holly Wrote:
Your article did bring a lot of practical things to light. I have worked in ALF for years and have taken care of Alzhimer patients and hospice patients. I intend to open a 6 bed ALF in Brevard County, Florida. Thank you for your input. Holly.
16 November 2008 at 3:35 pm

Assisted Living Directory Wrote:
Hi Susan,
Best of luck with your endeavor! Once you get your facility opened, make sure to list it on our site! - David.
29 September 2008 at 9:19 am

Susan C. Wrote:
Your site has been very helpful.
My plan is to open up an 8 bed unit in bishopville, sc.
I am in this to take care of people.
we used to be foster parents to special needs children and now we would like to care for special older people.

I will be grateful for any kind of sugestions and help.

thanks
susan c
Susan
28 September 2008 at 1:19 pm

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