HomeCareAtlas Team · Updated March 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 3-4 Months. Here's every step, fee, and deadline — sourced directly from Delaware DHSS, Office of Health Facilities Licensing and Certification (OHFLC).
Delaware requires non-medical home care agencies to obtain a Personal Assistance Services Agency (PASA) license. PASA is the non-medical model for agencies providing assistance with activities of daily living, companionship, homemaker services, transportation, medication reminders, and related support that does not require skilled nursing services.
To start a non-medical home care agency in Delaware, you need a Personal Assistance Services Agency (PASA) from the Delaware DHSS, Office of Health Facilities Licensing and Certification (OHFLC). The application fee is $500 (initial pasa license fee), the process takes approximately 3-4 months, and total startup costs range from $40,000 - $75,000. A 90-day probationary period follows licensure, and the director must be full-time with an associate degree plus 2 years of healthcare experience.
- License Required
- Yes — Personal Assistance Services Agency (PASA)
- Regulatory Body
- Delaware DHSS, Office of Health Facilities Licensing and Certification (OHFLC)
- Application Fee
- $500 (initial pasa license fee)
- Timeline
- 3-4 Months (estimated licensing timeline)
- Total Startup Cost
- $40,000 - $75,000
- Key Requirement
- A 90-day probationary period follows licensure, and the director must be full-time with an associate degree plus 2 years of healthcare experience.
- Last Verified
- March 2026 against Delaware DHSS, Office of Health Facilities Licensing and Certification (OHFLC) regulations
Initial PASA License Fee
Estimated Licensing Timeline
Residents Age 70+
Moderate Opportunity
How Delaware compares to neighboring states
| State | License Fee | Timeline | Startup Cost |
|---|---|---|---|
| Delaware ← | $500 | 3-4 Months | $40,000 - $75,000 |
| Pennsylvania | $100 | 10-20 Weeks | $12,000 - $38,000 |
| New Jersey | $1,000 | 16-22 Weeks | $55,000 - $100,000 |
| Maryland | $0 (no license) | Up to 6 Months | $50,000 - $95,000 |
Delaware Licensing Overview
The Delaware DHSS, Office of Health Facilities Licensing and Certification (OHFLC) oversees all non-medical agencies.Delaware requires non-medical home care agencies to obtain a Personal Assistance Services Agency (PASA) license. PASA is the non-medical model for agencies providing assistance with activities of daily living, companionship, homemaker services, transportation, medication reminders, and related support that does not require skilled nursing services.
90-Day Probationary License
Initial applicants receive a probationary license period before moving into standard operations.
Strict Director Requirements
The director must be a full-time employee and must have at least an associate degree plus two years of healthcare or homecare supervisory experience.
Heavy Screening Rules
Delaware requires criminal background checks, abuse checks, and drug testing for employees and contractors.
Administrator Certification
Every Personal Assistance Services Agency (PASA) must designate a qualified administrator or agency manager.
- Training Cost:Varies
- Topics:Director qualifications, supervision, agency oversight, and compliance readiness
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 | $500 | $500 |
| Annual Renewal Fee | $100 | $300 |
| Business Formation / Legal Setup | $400 | $1,800 |
| General Liability Insurance | $1,800 | $5,500 |
| Surety Bond | $400 | $2,200+ |
| 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 |
How to Get a Delaware PASA License
1-2 Weeks
Form Your Business Entity
Register your LLC or corporation, obtain an EIN, open a business bank account, and secure any required local business licenses.
1-3 Weeks
Hire a Qualified Director
Appoint a full-time director who meets Delaware's educational and supervisory experience requirements.
1-2 Weeks
Prepare Screening and Hiring Systems
Set up criminal background checks, abuse registry checks, fingerprinting, and drug testing for employees and contractors.
2-4 Weeks
Assemble Policies, Insurance, and Core Documents
Prepare proof of insurance, disaster preparedness materials, organizational documents, service lists, and director credentials.
1-2 Weeks
Submit PASA Application
Apply to OHFLC with the required forms, fees, exhibits, and ownership disclosures.
90 Days
Receive Probationary License
Delaware issues an initial probationary license for 90 days to agencies that complete the application process and meet the requirements.
During Probationary Period
Complete Required On-Site Review
Plan for the required survey and operational review during the probationary period.
New 2026 Legal Mandates
Probationary Initial License
Delaware grants an initial probationary license for 90 calendar days to qualifying PASA applicants.
Director Must Be Full-Time
The PASA director must be full-time and available to staff and consumers during operating hours.
Screening and Drug Testing
Employees and contractors must complete criminal background checks, abuse checks, and drug testing.
Business Name / Advertising Limits
PASA operators should avoid language in the title or advertising that implies the provision of healthcare services.
Separate Office Licensing
Each office location should be treated as its own licensing and service-area compliance question.
Caregiver Mandates
Important Warning
PASA is a non-medical model. Even if you hire CNAs or nurses, workers operating under the PASA must stay within PASA scope and cannot provide skilled nursing services through this license.
- Criminal Background Check: All employees and contractors must complete criminal background screening.
- Child and Adult Abuse Check: Agencies must attest that required abuse checks have been completed.
- Drug Testing: Mandatory drug testing applies to employees and contractors.
- Conditional Employment Window: Agencies may use a limited conditional employment period while awaiting certain federal fingerprint results, subject to state rules.
Regional Billing Snapshots
*Regional rates vary by specialized care needs (Dementia, Parkinson's) and local competition.*
Regional Market Opportunities
Delaware is small enough that founders can build meaningful regional coverage relatively quickly, but they still need to respect office and service-area rules and differentiate in the Wilmington market.
Wilmington / New Castle County
Largest concentration of seniors, referral sources, and suburban family caregivers in the state.
Key: Strong opportunity from families tied to the Philadelphia metro who want reliable support for aging relatives.
Kent County
Smaller but still meaningful market with lower competition than Wilmington.
Key: Relationship-based referral building can matter more than flashy branding.
Sussex County / Coastal Delaware
Retiree-heavy areas and seasonal population patterns can create demand for premium private-pay support.
Key: The senior concentration helps, but staffing consistency becomes a real operational challenge.
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
Medicaid and Additional Compliance
If the agency plans to serve Medicaid-funded populations, expect requirements beyond the base PASA licensure process.
Operational Readiness
It is smart to build documentation, visit tracking, and quality controls early even if you start with private-pay clients.
Becoming a Provider
Essential 2026 Tech Stack for Owners
Delaware Licensing FAQ
How much does a home care license cost in Delaware?
The initial PASA application fee is commonly cited as $500. Renewal figures should be verified carefully before publishing, because publicly available Delaware materials show at least one renewal form listing a $100 annual licensure fee.
How long does Delaware licensing take?
A practical planning estimate is 3 to 4 months, and the initial license period includes a 90-day probationary phase.
What qualifications does the director need in Delaware?
The director must be a full-time employee with at least an associate degree and two years of healthcare or homecare supervisory experience.
Can a Delaware PASA provide skilled nursing services?
No. PASA is a non-medical model and does not authorize skilled nursing services.
Is Delaware a good market for home care agencies?
Delaware can be attractive because of its high senior share and compact geography, though the market is smaller than larger East Coast states.
Starting in a Nearby State?
Licensing requirements vary a lot between states. Compare your options:
Pennsylvania
$100 fee · 10-20 Weeks
New Jersey
$1,000 fee · 16-22 Weeks
Maryland
No state license required · Up to 6 Months
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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.