How to start an assisted living facility in New Mexico
New Mexico requires a Assisted living facility license (any facility caring for two or more adults who need help with daily living activities) from New Mexico Health Care Authority (Division of Health Improvement) to operate an assisted living facility. Fee: Non-refundable fees are due with initial, amended and renewal applications, and an extra fee applies for a second temporary license; amounts are not printed in the rule.
- License required
- YesAssisted living facility license (any facility caring for two or more adults who need help with daily living activities)
- Application fee
- See details
- Processing time
- —
- Respite care (hourly)
- $7.46per 15 min · $29.84/hr
- Organizations in the state
- 170NPPES, Sep 13, 2026
On this page
New Mexico assisted living facility license
New Mexico requires a Assisted living facility license (any facility caring for two or more adults who need help with daily living activities) from New Mexico Health Care Authority (Division of Health Improvement) to operate an assisted living facility. Fee: Non-refundable fees are due with initial, amended and renewal applications, and an extra fee applies for a second temporary license; amounts are not printed in the rule.
- License required
- Yes
- License
- Assisted living facility license (any facility caring for two or more adults who need help with daily living activities)
- Fee
- Non-refundable fees are due with initial, amended and renewal applications, and an extra fee applies for a second temporary license; amounts are not printed in the rule.
- Renewal
- Every year · Apply for renewal within 30 business days before expiration, with the fee and the annual fire inspection report.
- Medicaid waiver coverage
- HHS's 2015 compendium reported that New Mexico's 1115 managed care program (then Centennial Care) paid for services in ALFs.
- Regulation
- 8.370.14 NMAC (Requirements for Assisted Living Facilities for Adults)
Steps to get licensed in New Mexico
In order, as the licensing agency describes the process.
- Send a letter of intent with the proposed address, population and services
- Submit the notarized application packet with non-refundable fees
- Receive a temporary license (no more than two in a row; requirements must be met within 240 days)
- Receive an annual license after a compliance determination
Enrolling as a New Mexico Medicaid provider
- Program
- New Mexico Medicaid / Turquoise Care (New Mexico Health Care Authority, Medical Assistance Division)
- Enrollment portal
- Provider & PED Enrollment System at YES.NM.GOV
- 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. HCA's enrollment pages do not list a separate state fee.
- Fingerprinting
- HCA's Provider Enrollment Matrix flags fingerprints as mandatory for home health agencies, DME/medical supply providers, prosthetists/orthotists, and private and state nursing facilities. 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.
- Site visit
- HCA's Provider Enrollment Matrix flags a mandatory site visit for some entries of these types: ground ambulance, home health agencies, hospice, clinical and diagnostic laboratories, DME/medical supply providers, physical therapists, LMFTs, and prosthetists/orthotists. 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.
- Revalidation
- New Mexico revalidates every three years, which is more often than the federal 5-year minimum. Revalidation is rolling and restarted in June 2026. A selected provider gets a 60-day notice, logs in to YES.NM.GOV, updates the record, uploads the documents listed in the Provider Enrollment Matrix, and submits. A provider who does not revalidate can be disenrolled. Expiring licenses and certifications are updated separately through a Recertification application.
Does New Mexico require a certificate of need?
- CON program
- No
New Mexico wage floor
- State minimum wage
- $12.00 an hour
- Effective
- 2023-01-01
- 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.
New Mexico market size
Counts from federal public files: NPPES (active organization NPIs), CMS Care Compare and CMS Medicaid enrollment.
- Assisted living facilities — active organization NPIs (NPPES)
- 170 (as of Sep 13, 2026)
- Total Medicaid and CHIP enrollment (latest reported month)
- 673,265 (as of Jun 1, 2026)
What New Mexico Medicaid pays
Home care & personal care: published New Mexico fee-for-service rates, each linked to its source.
| Service | Code | New Mexico rate | Per hour | Rank |
|---|---|---|---|---|
| Respite care (hourly)Agency provider | T1005 | $7.46per 15 min | $29.84 | 12 of 38 |
| Respite care (daily)Agency provider | S5151 | $73.09per day | — | 32 of 34 |
| Adult day servicesClinical nurse specialist | S5100 | $2.96per 15 min | $11.84 | — |
| Financial management services (self-direction)Self-directed worker | $120.00per per ISP year for each service as utilized | — | — |
New Mexico HCBS waivers
Medicaid home and community-based services programs that may pay for this service.
- NM Developmental Disabilities Waiver Program (1915(c))
- NM Medically Fragile Waiver (1915(c))
- NM Mi Via - ICF/IDD Waiver (1915(c))
- New Mexico Turquoise Care (formerly New Mexico Centennial Care 2.0) (1115)
Frequently asked questions
Do you need a license to start an assisted living facility in New Mexico?
New Mexico requires a Assisted living facility license (any facility caring for two or more adults who need help with daily living activities) from New Mexico Health Care Authority (Division of Health Improvement) to operate an assisted living facility. Fee: Non-refundable fees are due with initial, amended and renewal applications, and an extra fee applies for a second temporary license; amounts are not printed in the rule.
How much does an assisted living facility license cost in New Mexico?
Non-refundable fees are due with initial, amended and renewal applications, and an extra fee applies for a second temporary license; amounts are not printed in the rule. Renewal: Every year · Apply for renewal within 30 business days before expiration, with the fee and the annual fire inspection report..
Does New Mexico require a certificate of need for an assisted living facility?
No. New Mexico has no certificate of need program.
How do you become a Medicaid provider in New Mexico?
Enroll through Provider & PED Enrollment System at YES.NM.GOV (https://yes.nm.gov/).
What does New Mexico Medicaid pay a assisted living facility?
New Mexico Medicaid pays $7.46 per 15 min for respite care (hourly), effective Jul 1, 2026, ranking 12 of 38 states.