Arkansas - Home Health Service — Licensing, Medicaid Enrollment and Startup Requirements
Last reviewed: 2026-09-09
The Arkansas Department of Health (ADH) Health Facility Services licenses Home Health Agencies under a Class A designation to provide intermittent skilled nursing and therapy services. To enter the market, an applicant must first secure a Permit of Approval (POA) from the Arkansas Health Services Permit Agency (HSPA) for their specific geographic service area before any license application is accepted.
Once the POA and Class A license are obtained, agencies must achieve Medicare (Title XVIII) certification before enrolling in the Arkansas Medicaid Home Health Program. Enrollment is processed through the Department of Human Services (DHS) Division of Medical Services (DMS) via the Health Care Provider Portal, requiring submission of the ADH license, Medicare certification, and a Medicaid contract.
1. Service Definition and Scope
In Arkansas, Home Health services provide intermittent skilled nursing, physical therapy, occupational therapy, and speech-language pathology to individuals in their place of residence. The Arkansas Medicaid Home Health Program covers these services under a physician-ordered plan of care.
Agencies are classified by the state based on the scope of services. Class A agencies provide skilled nursing and therapeutic services and are Medicare-certified, whereas Class B agencies provide services without Medicare certification and cannot serve as the primary Medicaid Home Health provider.
- Service Location: services must be provided to an individual in their home or place of residence.
- Class A License: required to provide skilled nursing and therapeutic services under Medicare and Medicaid.
- Extended Care: defined by the state as six or more hours of continuous home health services provided in a 24-hour period.
- PCP Referral: required under the ConnectCare program for Medicaid beneficiaries, renewed every six months.
- Dual-Eligibles: Medicaid does not require a PCP referral for home health services provided to Medicare/Medicaid dual-eligibles.
2. Regulatory and Oversight Agencies
Multiple state entities govern the licensure, certification, and Medicaid enrollment of home health agencies in Arkansas. The Arkansas Department of Health handles direct facility licensure and conducts onsite surveys.
The Department of Human Services manages Medicaid enrollment and funding. The Health Services Permit Agency controls market entry through geographic need assessments.
- Arkansas Department of Health (ADH) Health Facility Services: issues Class A licenses and conducts surveys (https://healthy.arkansas.gov/programs-services/licensing-military-member-licensure-permits-plan-reviews/health-facility-services/).
- Arkansas Health Services Permit Agency (HSPA): issues the required Permit of Approval (POA) based on geographic need (https://healthy.arkansas.gov/programs-services/topics/health-services-permit-agency).
- DHS Division of Medical Services (DMS): manages the Arkansas Medicaid Home Health Program and provider enrollment (https://humanservices.arkansas.gov/divisions-shared-services/medical-services/).
- Arkansas Health Care Provider Portal (MMIS): processes electronic Medicaid provider applications and claims (https://portal.mmis.arkansas.gov/armedicaid/provider/Home/ProviderEnrollment/tabid/477/Default.aspx).
3. Gatekeeping Prerequisites: Who Can Even Apply
Arkansas strictly controls the proliferation of home health agencies through a Certificate of Need-style process. An applicant cannot simply apply for a license; they must first prove geographic need.
The Health Services Permit Agency (HSPA) dictates whether a new agency can open in a specific county or region. Without this approval, the ADH will not accept a licensure application.
- Permit of Approval (POA): mandated by Ark. Code Ann. §§ 20-8-103 for the specific geographical area to be served before a license can be issued.
- HSPA Review: determines if the geographic area requires additional home health capacity before a POA is granted.
- In-State Primary Agency: no license is issued to operate a branch or subunit whose primary agency is not located within the State of Arkansas.
- Medicare Certification Prerequisite: required by DMS before an agency can enroll in the Medicaid Home Health Program.
4. Licensure and Certification Requirements
Agencies must obtain a Class A Home Health Agency license from ADH Health Facility Services. The licensure process involves submitting operational policies, proving organizational structure, and passing an initial onsite inspection.
Following state licensure, the agency must obtain Title XVIII (Medicare) certification from the Arkansas Home Health State Survey Agency to be eligible for Medicaid enrollment.
- Class A License: required for agencies providing skilled nursing and therapeutic services.
- Initial Inspection: an onsite review conducted by ADH before the initial license is issued.
- Subsequent Inspections: conducted periodically at least every 3 years by ADH.
- Deficiency Correction: agencies have 60 days to come into compliance if deficiencies are found during an inspection.
- Medicare Certification: Title XVIII certification issued by the State Survey Agency is mandatory for Medicaid participation.
5. Medicaid Provider Enrollment
Enrollment in the Arkansas Medicaid Home Health Program is managed by the DMS Provider Enrollment Unit. Applications must be submitted electronically through the Health Care Provider Portal.
Providers must submit their Class A license, Medicare certification, and specific Medicaid forms. The state mandates revalidation every five years.
- Application Portal: Health Care Provider Portal (MMIS) is required for submission.
- Form DMS-652: the official Arkansas Medicaid provider application form.
- Form DMS-653: the Arkansas Medicaid contract form.
- Application Fee: CMS-mandated fee applies, but Medicare-enrolled providers who paid the fee to Medicare are exempt.
- Revalidation: required every 5 years in accordance with CMS directives.
6. Staffing, Training and Background Checks
Home health agencies must maintain qualified personnel to deliver skilled nursing and therapy services. Staffing structures must clearly delineate lines of authority down to the patient care level.
Arkansas enforces strict background check requirements for agency owners and high-risk providers to ensure patient safety and program integrity.
- Fingerprint Background Checks: required for high-risk providers and owners with a 5% or greater interest (42 CFR 455.434).
- Lines of Authority: organizational structure must be clearly stated in writing, detailing delegation of responsibility.
- Skilled Nursing: must be provided by licensed nurses operating under a physician's plan of care.
- Therapy Staff: physical, occupational, and speech therapists must hold current Arkansas state licenses in their respective disciplines.
7. Documentation, Policies and Records
Agencies must maintain comprehensive clinical and administrative records. The ownership must be actively involved in the development, review, and periodic evaluation of agency policies and budgets.
Medicaid requires specific documentation for patient referrals and ongoing care plans, which must be kept in the beneficiary's clinical record and made available during state surveys.
- PCP Referral Documentation: must be maintained in the clinical record for ConnectCare beneficiaries.
- License Renewals: copies of license and certification renewals must be submitted to the DMS Provider Enrollment Unit within 30 days of issuance.
- Policy Evaluation: documentation must show ownership involvement in periodic evaluation of budgets and services.
- Name Mismatch Rule: the name on every document (attachments, licenses, W-9) must match exactly to avoid application denial.
8. Billing, Rates and Claims
Billing for the Arkansas Medicaid Home Health Program is processed through the MMIS Health Care Provider Portal. Services must be prior-authorized or supported by a valid PCP referral where applicable.
Rates are established by the Division of Medical Services and are tied to specific procedure codes for skilled nursing visits, therapy visits, and extended care hours.
- Claims Portal: submitted electronically via the Arkansas MMIS Health Care Provider Portal.
- PCP Referrals: required for billing under ConnectCare, except for Medicare/Medicaid dual-eligibles.
- W-9 Requirements: groups must complete the W-9 with the group's name and Tax ID; individuals use name and SSN.
- NPI Requirement: National Provider Identifier must be reported to Arkansas Medicaid once enrolled.
9. Approval Sequence and Timeline
The approval process is sequential and cannot be expedited. It begins with securing the geographic Permit of Approval from HSPA, followed by the ADH licensure application.
After passing the initial ADH inspection and receiving the Class A license, the agency must secure Medicare certification before finally applying for Medicaid enrollment, which takes an additional 30 to 60 days.
- Step 1: Obtain a Permit of Approval (POA) from the Health Services Permit Agency for the target geographic area.
- Step 2: Submit licensure application to ADH Health Facility Services and pass the initial onsite inspection.
- Step 3: Obtain Title XVIII (Medicare) certification from the State Survey Agency.
- Step 4: Submit Medicaid enrollment via the Health Care Provider Portal (processing takes 30 to 60 days).
10. Common Denials and Survey Findings
Applications for licensure and Medicaid enrollment are frequently delayed or denied due to administrative errors. The DMS Provider Enrollment Unit strictly enforces document consistency.
During ADH surveys, agencies are often cited for failing to maintain current policies or failing to notify the state of operational changes within required timeframes.
- Name Mismatches: application denied if the name on the license, W-9, and application do not match exactly.
- Missing Attachments: failure to upload the current Class A license or Medicare certification in the portal.
- Outdated Forms: using old versions of DMS-652 or DMS-653 results in returned submissions.
- Failure to Notify: agencies cited for not notifying ADH within five working days of a name change or address change.
11. Key Contacts and Resources
Providers must interact with multiple state divisions for licensure, certification, and billing support. The primary portals and contact points are maintained by ADH and DHS.
Utilizing the official state portals and provider manuals is essential for maintaining compliance and successfully navigating the enrollment process.
- ADH Health Facility Services: manages Class A licensure (https://healthy.arkansas.gov/programs-services/licensing-military-member-licensure-permits-plan-reviews/health-facility-services/).
- Health Services Permit Agency (HSPA): manages the Permit of Approval process (https://healthy.arkansas.gov/programs-services/topics/health-services-permit-agency).
- Medicaid Provider Enrollment Unit: (501) 376-2211 or (800) 457-4454 for enrollment questions.
- Health Care Provider Portal: for Medicaid applications and claims (https://portal.mmis.arkansas.gov/armedicaid/provider/Home/ProviderEnrollment/tabid/477/Default.aspx).
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