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Start a business · Adult day care center · Tennessee

How to start an adult day care center in Tennessee

Tennessee requires a Adult day services center license, required for centers serving 5 or more people (lowered from 10 in 2017) from Tennessee Department of Human Services to operate an adult day care center.

Verified Oct 6, 2026Sources: state agencies, CMS and OIG

License required
YesAdult day services center license, required for centers serving 5 or more people (lowered from 10 in 2017)
Application fee
—
Processing time
—
Personal care / attendant care (hourly)
$6.59per 15 min · $26.36/hr
Organizations in the state
89NPPES, Sep 13, 2026
On this page
Licensing

Tennessee adult day care center license

Tennessee requires a Adult day services center license, required for centers serving 5 or more people (lowered from 10 in 2017) from Tennessee Department of Human Services to operate an adult day care center.

License required
Yes
License
Adult day services center license, required for centers serving 5 or more people (lowered from 10 in 2017)
Medicaid waiver coverage
TDHS says the adult day program is funded through the Social Services Block Grant. HHS (2014) reported that TennCare CHOICES (1115) pays for adult day care.
How to apply

Steps to get licensed in Tennessee

In order, as the licensing agency describes the process.

  1. Follow TDHS's 'How to Become a Licensed Adult Day Services Center' process
  2. Get fire, safety, environmental and food service approvals before the TDHS initial inspection (HHS 2014)
  3. Pass the TDHS inspection
Medicaid

Enrolling as a Tennessee Medicaid provider

Program
TennCare (Division of TennCare, Tennessee)
Application fee
Under the federal rule (42 CFR 455.460), institutional providers pay the CMS application fee when they first enroll, re-enroll or revalidate. The fee is $750 for calendar year 2026. Individual physicians and non-physician practitioners do not pay it. A fee already paid to Medicare or to another state's Medicaid program counts. TennCare's registration pages do not list a separate state fee.
Fingerprinting
Under federal rules (42 CFR 455.434 and 455.450), the state places provider types in 'limited', 'moderate' or 'high' risk levels. High-risk providers, and anyone who owns 5% or more of one, must submit fingerprints for a criminal background check. TennCare's registration pages do not describe a separate state fingerprint process.
Site visit
Under federal rule (42 CFR 455.432), the state must visit moderate- and high-risk providers before and after enrollment. Every enrolled provider must allow unannounced on-site inspections. TennCare's registration pages do not describe a separate state site visit process.
Revalidation
Every TennCare provider enrollment must be revalidated every 3 years, more often than the federal 5-year minimum. Submitting any update in the enrollment portal resets the due date. Groups and entities see the due date at the top of their enrollment. Individual providers revalidate by submitting their Data Spring (CAQH ProView) application.

Full Tennessee Medicaid enrollment guide →

Certificate of need

Does Tennessee require a certificate of need?

CON program
Yes
Program
Certificate of Need
Services covered
  • hospitals
  • nursing homes (and nursing home bed increases beyond the lesser of 10 beds or 10% once every 3 years)
  • ambulatory surgical treatment centers
  • home care organizations (home health and hospice)
  • residential hospice
  • outpatient diagnostic centers
  • rehabilitation facilities
  • nonresidential substitution-based opiate treatment centers
  • open heart surgery, organ transplantation, cardiac catheterization, linear accelerators
  • MRI/PET initiation in counties of 175,000 or fewer; pediatric MRI in larger counties
  • bed redistribution/relocation, facility relocation, hospital satellite EDs and satellite inpatient facilities

Tennessee certificate of need details →

Labor

Tennessee wage floor

State minimum wage
$7.25 an hour
Effective
2009-07-24
Scheduled increases
No scheduled change found in the official sources reviewed.
HCBS 80/20 rule
Federal baseline: 42 CFR 441.302(k) requires the state to show that each provider spends at least 80% of Medicaid payments for homemaker, home health aide and personal care services under 1915(c) waivers on direct care worker pay and benefits. Compliance starts 2030-07-09 (for managed care, the first rating period starting on or after that date); annual payment-adequacy reporting under 441.311(e) starts 2028-07-09. A state may set a lower share for state-defined small providers and exempt providers facing hardship, each only through a public notice-and-comment process. The eCFR text has not changed since 2024-07-09. No state-published 80/20 implementation step (small-provider criteria, hardship exemption or reporting guidance) was found for this state in the official sources reviewed.
Market

Tennessee market size

Counts from federal public files: NPPES (active organization NPIs), CMS Care Compare and CMS Medicaid enrollment.

Adult day care clinics/centers — active organization NPIs (NPPES)
89 (as of Sep 13, 2026)
Total Medicaid and CHIP enrollment (latest reported month)
1,384,007 (as of Jun 1, 2026)
Rates

What Tennessee Medicaid pays

Home care & personal care: published Tennessee fee-for-service rates, each linked to its source.

ServiceCodeTennessee ratePer hourRank
Personal care / attendant care (hourly)Agency providerT1019$6.59per 15 min$26.3620 of 27
Companion careAide or attendantS5136$165.39per day——
Respite care (hourly)Agency providerS5150$6.59per 15 min$26.3618 of 38
Respite care (daily)Agency providerS9125$144.61per day—28 of 34
Adult day servicesClinical nurse specialistS5100$3.75per 15 min$15.00—

All Tennessee Home care Medicaid rates, ranked →

Waivers

Tennessee HCBS waivers

Medicaid home and community-based services programs that may pay for this service.

  • TN Comprehensive Aggregate Cap Home and Community Based Services (CAC) Waiver (1915(c))
  • TN Self-Determination Waiver Program (1915(c))
  • TN Statewide Home and Community Based Services Waiver (1915(c))
  • TennCare III (subsumes TennCare II) (1115)

Tennessee waivers and waiting lists →

FAQ

Frequently asked questions

Do you need a license to start an adult day care center in Tennessee?

Tennessee requires a Adult day services center license, required for centers serving 5 or more people (lowered from 10 in 2017) from Tennessee Department of Human Services to operate an adult day care center.

Does Tennessee require a certificate of need for an adult day care center?

Tennessee has a certificate of need program covering: hospitals, nursing homes (and nursing home bed increases beyond the lesser of 10 beds or 10% once every 3 years), ambulatory surgical treatment centers, home care organizations (home health and hospice), residential hospice, outpatient diagnostic centers, rehabilitation facilities, nonresidential substitution-based opiate treatment centers, open heart surgery, organ transplantation, cardiac catheterization, linear accelerators, MRI/PET initiation in counties of 175,000 or fewer; pediatric MRI in larger counties, bed redistribution/relocation, facility relocation, hospital satellite EDs and satellite inpatient facilities. Check whether your service is on that list.

How do you become a Medicaid provider in Tennessee?

Enroll through TennCare Provider Registration portal, plus Data Spring (formerly CAQH ProView) for individual providers (https://www.tn.gov/tenncare/providers/provider-registration/how-to-apply.html).

What does Tennessee Medicaid pay a adult day care center?

Tennessee Medicaid pays $6.59 per 15 min for personal care / attendant care (hourly), effective Jul 1, 2025, ranking 20 of 27 states.