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Tutorial HFA for Application Inquiries

CONTENT Top of Page

PURPOSE OF THE TUTORIAL 

The purpose of this tutorial is to answer questions and provide information to assist you in making an informed decision about applying for a home for the aged license. 

This tutorial will not: 

  • Determine your appropriateness to be a licensee. 
  • Provide you with training or competency to be a licensee or administrator. 

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BUSINESS CONSIDERATIONS 

The purpose of this section is to discuss the business aspect of becoming a licensee. 

The licensee is the owner (person, persons in a partnership, the corporation or the limited liability company (LLC)) who the home for the aged license is issued to. It is best to check with your business consultant first before submitting an application. 

  • The Effect of Licensing on You: 
  • Developing and operating a business today requires a level of sophistication 
  • Perhaps consult with someone already licensed 
  • Determine type of ownership 
  • Proprietorship/partnership/corporation/limited liability company 
  • Determine level of insurance (auto/home and liability) to buy 
  • Determine how to market and finance 
  • Determine food service supplier - vendor/local grocery 
  • Determine if you want employees bonded 
  • Determine if you are ready to face many conflicting demands and pressures:
    • you must satisfy your customers 
    • you must comply with the regulation of at least two government agencies, maybe more 
    • you must meet the expectations of employees 
    • you must make a good impression on the public 

Although not a licensing requirement, it is recommended that you develop a business plan to include: 

  • Marketing strategies 
  • Financial plan 
  • Determine/get acquainted with potential placement sources: Local Department of Human Services/Adult Services, local Office on Aging, hospital medical social workers/discharge planners, veteran's hospital, community mental health system, etc. 

The following website may be helpful: www.michigan.gov/business . 

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PURPOSE AND DEFINITION OF HOME FOR THE AGED 

The purpose of this section is to provide the purpose and definition of a home for the aged and describe how homes for the aged differ from other types of residential programs. 

Definition of Home for the Aged 

  • A home for the aged is a specific type of assisted living, as outlined in PA 368 and the administrative rules. 
  • Home for the aged means a supervised personal care facility that provides room, board, and supervised personal care to 21 or more unrelated, nontransient individuals 60 years of age or older. Home for the aged includes a supervised personal care facility for 20 or fewer individuals 60 years of age or older if the facility is operated in conjunction with and as a distinct part of a licensed nursing home. 
  • Room and board means the provision of housing and meals. A "room" could be a bedroom, an apartment, a suite, etc. Board generally means the provision of one or more meals/food as part of a "package" that includes room or lodging. 
  • Supervised personal care means guidance (cuing, prompting , reminding) or assistance (help provided by a home or employee or agent of a home) with eating, toileting, bath i ng , grooming, dressing, transferring, mobility, medication management , reminding resident of important activities to be carried out, assisting a resident to keep appointments , supporting a resident ' s personal and social needs, and being aware of a resident ' s general whereabouts even if the resident is capable of independent travel about the community. 

Purpose of Home for the Aged 

  • To provide needed care for vulnerable, aged adults. 
  • To assure resident protection from physical harm, humiliation, intimidation, and social, moral, financial and personal exploitation. 
  • To treat residents with dignity while meeting their personal care needs and ensuring their health, safety and well-being. 

What a Home for the Aged is Not 

  • It is not a nursing home as the residents do not require continuous nursing care, unless a hospice patient. 
  • It is not a room and board situation. 
  • It is not specialized care provided in an individual's home as the individual receiving care typically does not own or control the real estate. 
  • It excludes facilities licensed under other laws such as: 
    §       Adult foster care 
    §       Hospitals 
    §       Facilities operated by the Department of Community Health
    §       Children's facilities. 

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