With New Mexico’s aging population and growing demand for in-home care, starting a home care business can be both a rewarding and profitable opportunity. Whether you want to provide non-medical personal care or skilled home health services, it’s important to understand the licensing requirements and operational steps specific to New Mexico.

This step-by-step guide walks you through how to successfully launch a home care business in the state .
how to start home care business New Mexico


1. Determine Your Service Type
In New Mexico, there are two main types of home care services:

Non-Medical Home Care: Personal care, companionship, housekeeping, and assistance with daily living.

Home Health Care (Medical): Skilled nursing, physical therapy, and other medical services performed by licensed professionals.

Your first step is to decide which type of service you’ll provide, as this determines licensing requirements.

2. Create a Detailed Business Plan
A clear and strategic business plan sets the foundation for your home care business. Include:

Business mission and vision

Services to be offered

Target client base (elderly, disabled, post-surgery patients)

Competitive analysis

Staffing plan

Startup and operational costs

Marketing strategies

Financial projections

3. Choose a Legal Business Structure and Register
Decide on a legal structure such as an LLC, corporation, or sole proprietorship. Most home care businesses choose an LLC for liability protection and tax flexibility.

You must then:

Register your business with the New Mexico Secretary of State

Obtain a Federal EIN (Employer Identification Number) from the IRS

Register for state taxes with the New Mexico Taxation and Revenue Department

4. Apply for the Required License
For Non-Medical Home Care:
In New Mexico, non-medical home care agencies must be licensed as Home Health Agencies if they provide personal care services.

Apply through the New Mexico Department of Health (DOH), Division of Health Improvement.

For Home Health (Medical) Care:
Obtain a Home Health Agency License from the New Mexico Department of Health.

You may also need:

A clinical supervisor (Registered Nurse)

Written policies and procedures

Infection control protocols

Emergency preparedness plans

If you plan to accept Medicare/Medicaid, you’ll need CMS certification and must comply with federal Conditions of Participation.

5. Obtain Business Insurance
Proper insurance is essential to protect your business and meet state requirements:

General liability insurance

Professional liability (malpractice) insurance

Workers’ compensation insurance (if hiring employees)

Auto insurance (if caregivers use their vehicles)

6. Hire Qualified Staff
Depending on your service type, you may need to hire:

Personal care attendants

Certified Nursing Assistants (CNAs)

Home Health Aides (HHAs)

Registered Nurses (RNs) and Licensed Practical Nurses (LPNs)

All caregivers must undergo background checks, TB testing, and CPR certification. Ongoing training and compliance with New Mexico caregiver regulations is required.

7. Develop Policies and Procedures
Your agency should have documented procedures that cover:

Client intake and assessment

Care plans and documentation

HIPAA and privacy policies

Infection control

Incident reporting

Staff training and supervision

These are critical not only for legal compliance but also for ensuring quality care.

8. Market Your Business
Reach your target audience using both traditional and digital marketing methods:

Build a professional website with service details and contact info

Create a Google Business Profile

Network with hospitals, senior centers, and healthcare providers

Use social media platforms to build local awareness

Attend health fairs and sponsor community events

Word-of-mouth referrals and client testimonials will also help you grow.

9. Maintain Compliance and Plan for Growth
Stay current with all state licensing requirements, renewals, and caregiver training. You should also:

Keep accurate client and staff records

Review and update policies regularly

Conduct internal audits

Explore Medicaid waiver programs or insurance partnerships to expand your services

Final Thoughts
Starting a home care business in New Mexico takes careful planning, compliance with licensing regulations, and a passion for helping others. Whether you're offering personal care or skilled medical services, the demand for home-based support is strong and growing.

Need help getting started? Consult with a healthcare attorney or home care startup consultant in New Mexico to ensure your business is compliant and positioned for success.