Not So Simple
To say that starting an Adult Day Health Care business in California is simple, is like saying quantum physics is a walk in the park. One concept that took me years to fully understand, is that of certification and licensure.
Department of Aging vs. Department of Health Care Services
In California ADHC centers are licensed by the California Department of Health Care Services. This does not give them the ability to bill Medi-Cal for services. If someone also wants to bill Medi-Cal (Medi-Cal Managed Care) companies for services, they must also be certified to provide CBAS services. This certification is provided by the California Department of Aging.
This is a good distinction to understand, as in order to open an ADHC/CBAS center, you must submit one application to the Department of Aging and another application to Department of Health Care Services. It’s also important to note that you although you may not submit an application to Department of Aging, prior to the approval of your pre-screening package, you may submit the Department of Health Care Services application at any time.
Risk and Benefits, You Choose
If you are relying on Medi-Cal as a payer source, there is a possibility that your pre-screening package will be denied. You also must have a physical site, with a lease, in order to submit an application (for both CDA and CDPH). Although submitting the pre-screening and the CDA application cost nothing, submitting an application to CDPH requires a $6241.53 fee. The upside of submitting the CDPH application as soon as possible, is that this application has been taking longer to be approved than the CDA applications, so you are potentially reducing the time you will need to wait to open your ADHC / CBAS center while the applications are being reviewed.
We’re Here to Help
We can help you make that determination, what will be the best way forward for you in submitting your applications and pre-screening packages. We have many options available to meet the needs of most budgets.