HomeCareAtlas Team · Updated November 2026
Researched from primary state regulatory sources.
How to Start a Home Care Agency in Delaware
Starting a home care agency in Delaware costs roughly $40,000 - $75,000 and takes 6-9 Months. Here's every step, fee, and deadline — sourced directly from Delaware DHSS, Division of Health Care Quality (DHCQ), Office of Health Facilities Licensing and Certification (OHFLC).
Delaware requires a license for non-medical home care. It is called a Personal Assistance Services Agency (PASA) license. The rules are in 16 Del. Admin. Code 3345 and 16 Del. C. Sec. 122(3)(x). A PASA helps with daily living tasks, companionship, homemaker work, and transportation. It cannot provide skilled nursing. The first fee is $250. Renewal is $100 each year. A new agency first gets a 90-day license. You must pass a surprise visit from the state in those 90 days.
To start a non-medical home care agency in Delaware, you need a Personal Assistance Services Agency (PASA) from the Delaware DHSS, Division of Health Care Quality (DHCQ), Office of Health Facilities Licensing and Certification (OHFLC). The application fee is $250 (initial pasa license fee), the process takes approximately 6-9 months, and total startup costs range from $40,000 - $75,000. Delaware requires a PASA license ($250 to start, $100 a year). You need a full-time director with an associate degree and 2 years of supervisor experience. The state surveys you within your first 90 days.
- License Required
- Yes — Personal Assistance Services Agency (PASA)
- Regulatory Body
- Delaware DHSS, Division of Health Care Quality (DHCQ), Office of Health Facilities Licensing and Certification (OHFLC)
- Application Fee
- $250 (initial pasa license fee)
- Timeline
- 6-9 Months (estimated licensing timeline)
- Total Startup Cost
- $40,000 - $75,000
- Key Requirement
- Delaware requires a PASA license ($250 to start, $100 a year). You need a full-time director with an associate degree and 2 years of supervisor experience. The state surveys you within your first 90 days.
- Last Verified
- November 2026 against Delaware DHSS, Division of Health Care Quality (DHCQ), Office of Health Facilities Licensing and Certification (OHFLC) regulations
Estimated Licensing Timeline
Source: DHCQ, Opening a Home Health Agency (Application Process, step 4) · Checked Oct 2026
Residents Age 70+
Moderate Opportunity
How Delaware compares to neighboring states
| State | License Fee | Timeline | Startup Cost |
|---|---|---|---|
| Delaware ← | $250 | 6-9 Months | $40,000 - $75,000 |
| Pennsylvania | $100 | 10-20 Weeks | $12,000 - $38,000 |
| New Jersey | $500 | Varies | $55,000 - $100,000 |
| Maryland | $1,000 | Up to 6 Months | $50,000 - $95,000 (our estimate) |
Delaware Licensing Overview
The Delaware DHSS, Division of Health Care Quality (DHCQ), Office of Health Facilities Licensing and Certification (OHFLC) oversees all non-medical agencies.Delaware requires a license for non-medical home care. It is called a Personal Assistance Services Agency (PASA) license. The rules are in 16 Del. Admin. Code 3345 and 16 Del. C. Sec. 122(3)(x). A PASA helps with daily living tasks, companionship, homemaker work, and transportation. It cannot provide skilled nursing. The first fee is $250. Renewal is $100 each year. A new agency first gets a 90-day license. You must pass a surprise visit from the state in those 90 days.
Survey in Your First 90 Days
Your first license lasts only 90 days. The state visits without warning in that time. Pass the visit to get a 1-year license.
Strict Director Requirements
You need a full-time director. The director needs at least an associate degree. They also need two years as a supervisor in health care or home care. Ask OHFLC if your past work counts. Its own FAQ gives mixed answers on non-medical home care work.
Heavy Screening Rules
Delaware requires fingerprint criminal checks, drug tests, and adult and child abuse registry checks. These apply to employees and contractors.
Estimated Startup Costs (2026)
Budget for $40,000 - $75,000 to ensure 3-6 months of runway.
| Category | Low Est. | High Est. |
|---|---|---|
| Initial PASA License Fee | $250 | $250 |
| Annual Renewal Fee | $100 | $100 |
| Business Formation / Legal Setup | $400 | $1,800 |
| General Liability Insurance ($1M Required) | $1,800 | $5,500 |
| Workers' Compensation | $400 | $2,500+ |
| Background Checks / Fingerprinting / Drug Testing | $800 | $2,500 |
| Office / Administrative Setup | $1,500 | $5,500 |
| Initial Marketing | $1,500 | $4,500 |
| Working Capital | $18,000 | $45,000 |
We map every cost and file your Delaware license for you.
How to Get a Delaware PASA License
1-2 Weeks
Read the Rules and Plan Your Business
Read 16 Del. Admin. Code 3345. Pick your business name and type. The state says not to spend money on a business license, insurance, an office, or staff until it recommends you for a license.
1-3 Weeks
Choose Your Director and Backup
Pick a full-time director with an associate degree and two years as a health care or home care supervisor. Pick a backup director with the same skills. The state says you can hire them for real once you have a license.
2-4 Weeks
Write Your Policies and Worker Test
Write your policy manual. Write the skills test every worker must pass. Both go in with your application.
2-4 Weeks
Build Your Binder
Follow the state checklist. Add your list of services, org chart, owners, and governing body. Do not use plastic page covers. The state keeps the binder, so make a copy.
1-2 Weeks
Send the Application
Type the Part 1 application. Send it with your binder and a $250 certified check or money order. Make it out to the State of Delaware. Send it to OHFLC, 263 Chapman Road, Suite 200, Newark, DE 19702.
6-9 Months
Wait for Review
The state says review takes 6 to 9 months or more. Do not call to check. If it asks for changes, you have 30 days to send them. You cannot call yourself a PASA until you have a license.
Within First 90 Days
Pass the 90-Day Survey
Once approved, you get a 90-day license. You can hire staff and take clients. The state visits without warning. You must be serving clients by then. Pass, and you get a 1-year license.
We can do all of them for you in Delaware.
New 2026 Legal Mandates
On-Site Survey in First 90 Days
Under 16 Del. Admin. Code 3345-2.3, every new PASA gets an on-site survey in its first 90 days. You must be open and serving clients by then. The 90-day license cannot be renewed. If you fall out of line later, the state can give you a short provisional license instead.
Director Must Be Full-Time
Each agency must have a full-time director with an associate degree and two years of supervisor experience. Directors already in place on June 1, 2020 are exempt. The director, or someone they name, must be reachable during your open hours.
Fingerprint Checks and Drug Testing (16 Del. C. Sec. 1145-1146)
Employees and contractors need a state and FBI fingerprint check and a drug test before they work. A worker can start for up to 60 days while you wait for the criminal check. But they must be fingerprinted first. $1,000 to $5,000 for each violation.
Abuse Registry Checks (11 Del. C. Sec. 8563-8564)
Check the Adult Abuse Registry and the Child Protection Registry for every employee and contractor. You also need a service letter from past employers (19 Del. C. Sec. 708). The state renewal form has you sign that you did all of this.
Where You Can Work
Your office can be in your home. It needs a room with a door that locks, to keep files safe. The state says you may only serve clients in your office's county and the county next to it.
Liability Insurance (16 Del. Admin. Code 3345-7.0)
You must carry general liability insurance. The minimum is $1 million per occurrence and $500,000 single limit. The rule does not set a bond amount.
No Health Care Language in Your Name
A PASA may not use the word "healthcare" or any words that suggest health care services in its name or ads.
One License Per Office
Each office needs its own license. Licenses cannot be moved to another person or company. A new owner must apply as a new agency.
Our Delaware licensing team tracks the law so you do not have to.
Caregiver Mandates
Important Warning
PASA is a non-medical license. Even if you hire CNAs or nurses, they must stay within PASA scope. They cannot provide skilled nursing through this license.
- Fingerprint Criminal Background Check: All employees and contractors need a state and FBI fingerprint check through the State Bureau of Identification.
- Child and Adult Abuse Registry Check: You must check both registries. The state renewal form has you sign that you did it.
- Drug Testing: You must get drug test results for every employee and contractor before they start work.
- Orientation and Competency Test: Each direct care worker must finish your orientation program and pass a competency test before serving clients. They must pass the test again every year. The rule sets topics, not hours.
- TB Testing: Workers need TB screening before they start and each year after. Follow current CDC advice. New workers need a physical exam before they give care. The rule says within 12 months, but DHCQ's FAQ says it must be within 3 months of hire. Use 3 months to be safe.
- Conditional Employment Window: You may let a worker start for up to 60 days while fingerprint results are pending.
Regional Billing Snapshots
*Regional rates vary by specialized care needs (Dementia, Parkinson's) and local competition.*
We launch Delaware home care agencies start to finish.
Regional Market Opportunities
Delaware is small. But you may only serve your office's county and the one next to it. So pick your office spot with care. The rates below are our estimates of private-pay prices, not official numbers.
Wilmington / New Castle County
The most people and the most referral sources in the state.
Key: Many grown kids live near Philadelphia and want help for a parent here.
Kent County
A smaller market around Dover.
Key: Getting to know local referral sources matters more than fancy ads.
Sussex County / Coastal Delaware
Many retirees live near the beach towns.
Key: Lots of seniors, but finding steady staff can be hard.
Cost of care in Delaware
What agencies charge clients vs. what caregivers earn in Delaware. The difference is the agency's gross margin per billable hour — before overhead like insurance, admin, marketing, and compliance costs.
$37.5
Avg. hourly rate charged to clients
$20.94
Avg. caregiver hourly wage
$16.56
Gross margin per hour
44%
Gross margin %
What this means for agency owners
In Delaware, agencies keep roughly $16.56 per billable hour after paying the caregiver. That's a 44% gross margin.
This is a strong margin that gives you room to cover overhead costs (insurance, admin, marketing, compliance) and still run a profitable agency.
Sources: Avg. hourly rate from CareYaya and CareScout 2025 surveys (averaged). Caregiver wage from Care.com. Gross margin is before overhead costs like insurance, admin, marketing, and compliance.
Delaware Medicaid Programs
Diamond State Health Plan Plus (DSHP-Plus)
This is Delaware Medicaid's long-term care program. It can pay for help at home. To serve these clients, you must become a Medicaid provider. Ask the Division of Medicaid and Medical Assistance (DMMA) how. That is a separate step from your PASA license.
Operational Readiness
Build your visit tracking, notes, and quality checks early. It is easier than fixing them later when you add Medicaid clients.
Becoming a Provider
Essential 2026 Tech Stack for Owners
Tiles outlined in teal are areas HomeCareAtlas covers in our platform.
Delaware Licensing FAQ
How much does a home care license cost in Delaware?
The first PASA license fee is $250. It is not refundable. Renewal is $100 each year. Pay by certified check or money order to the State of Delaware.
How long does Delaware licensing take?
Plan for 6 to 9 months or more. The state says that is how long review takes. Then you get a 90-day license. The state visits you in that time. Pass, and you get a 1-year license.
What qualifications does the director need in Delaware?
The director must be full-time. They need at least an associate degree. They also need two years as a supervisor in health care or home care. Ask OHFLC if your past work counts. Your backup director needs the same skills.
Can a Delaware PASA provide skilled nursing services?
No. PASA is a non-medical license. Skilled nursing needs a home health agency license.
Is Delaware a good market for home care agencies?
Delaware can be a good fit. It has a high share of seniors and short drive times. But the market is smaller than nearby states.
Starting in a Nearby State?
Licensing requirements vary a lot between states. Compare your options:
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Home care agencies in Delaware
Want to see the competition up close? Look at who is already open, city by city.
- Home care agencies in Highland Acres
- Home care agencies in Wilmington
- Home care agencies in Christiana
- Home care agencies in Dover
- Home care agencies in Georgetown
Looking for care for a family member? Find agencies near you
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Where our numbers come from
We check each fact against Delaware's own rules. Tap a source to read it yourself.
- License needed?Yes16 Del. Admin. Code 3345-2.1.1· Oct 2026
- Who oversees itDelaware DHSS, Division of Health Care Quality (DHCQ), Office of Health Facilities Licensing and Certification (OHFLC)DHCQ, Opening a Home Health Agency· Oct 2026
- License namePersonal Assistance Services Agency (PASA)16 Del. C. §122(3)x· Oct 2026
- The rules16 Del. Admin. Code 334516 Del. Admin. Code 3345· Oct 2026
- First license fee$25016 Del. C. §122(3)x.4· Oct 2026
- License lasts1 year16 Del. Admin. Code 3345-2.3.3.1· Oct 2026
- BondNone16 Del. Admin. Code 3345-7.0· Oct 2026
- Owner/manager trainingNo state minimum16 Del. Admin. Code 3345-1.0 ("Director")· Oct 2026
- Caregiver trainingNo state minimum16 Del. Admin. Code 3345-4.5· Oct 2026
- Background checksState (SBI) and FBI fingerprint criminal history check before hire, plus a drug test16 Del. C. §§1145-1146· Oct 2026
- How long it takes6-9 MonthsDHCQ, Opening a Home Health Agency (Application Process, step 4)· Oct 2026
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This guide is for informational purposes only and does not constitute legal, regulatory, or business advice. Licensing requirements, fees, and regulations change frequently. Always verify current requirements with your state's licensing agency before making business decisions. HomeCareAtlas is not responsible for the accuracy or completeness of this information.
Researched and reviewed by
John Helmy, Founder of HomeCareAtlasBuilding tools and resources to help home care agency owners navigate licensing, compliance, and growth.