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How to start a skilled nursing facility in Indiana

Indiana requires a Comprehensive care facility license from Indiana Department of Health, Division of Long Term Care to operate a skilled nursing facility. Fee: Applicant pays the license fee set by rule; amount not restated here.

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

License required
YesComprehensive care facility license
Application fee
See details
Processing time
—
Nursing home stay (daily rate)
$309.47per day
Organizations in the state
846NPPES, Sep 13, 2026
On this page
Licensing

Indiana skilled nursing facility license

Indiana requires a Comprehensive care facility license from Indiana Department of Health, Division of Long Term Care to operate a skilled nursing facility. Fee: Applicant pays the license fee set by rule; amount not restated here.

License required
Yes
License
Comprehensive care facility license
Fee
Applicant pays the license fee set by rule; amount not restated here.
Renewal
Every year · Renewal application due at least 45 days before the license expires.
Certificate of need
Required
Medicare certification
Separate from the state license. The state survey agency runs an unannounced standard health survey, a Life Safety Code survey and an emergency-preparedness survey against 42 CFR Part 483 Subpart B. For a Medicare SNF the state certifies and the CMS Location decides Medicare participation; for a Medicaid-only NF the state's certification is final and the state Medicaid agency decides participation.
Regulation
410 IAC 16.2-3.1; IC 16-28; IC 16-29-7 and 410 IAC 40 (CON for comprehensive care beds)
How to apply

Steps to get licensed in Indiana

In order, as the licensing agency describes the process.

  1. Confirm the project is allowed under the comprehensive care bed certificate-of-need program (IC 16-29-7; 410 IAC 40) — adding, transferring, constructing or converting comprehensive care beds, and adding Medicaid-certified beds, is barred except as the statute permits
  2. Small house health facilities may apply under the separate small-house allowance (IC 16-28-2.5-7)
  3. Submit the application for license to operate a health facility with the license fee
  4. Pass the IDOH licensure survey
  5. For Medicare/Medicaid, complete the federal certification survey and enroll with Indiana Medicaid
Medicaid

Enrolling as a Indiana Medicaid provider

Program
Indiana Health Coverage Programs (IHCP) — Indiana Medicaid
Fiscal agent
Gainwell Technologies (IHCP fiscal agent for provider enrollment and revalidation)
Application fee
IHCP's Risk Category and Application Fee Matrix shows which specialties owe the fee. Proof of electronic payment (or of payment to Medicare or another state) must come with the application, and a separate fee is due for each service location at initial enrollment, revalidation and change of ownership. Federal rule (42 CFR 455.460): the state must collect the CMS application fee from institutional providers that are newly enrolling or re-enrolling; individual physicians and non-physician practitioners are exempt, as are providers already enrolled in (or that already paid the fee to) Medicare or another state's Medicaid/CHIP. CMS set the fee at $750 for calendar year 2026.
Fingerprinting
In Indiana, every individual with 5%+ ownership or control of a high-risk enrolling entity must finish Medicaid fingerprinting before the application is submitted, and the fingerprint confirmation number goes on the application. IHCP may assign a higher risk level than its matrix shows. Federal rule (42 CFR 455.434, 455.450(c)): providers the state places in the 'high' categorical risk level, and anyone owning 5% or more of such a provider, must submit fingerprints for a criminal background check.
Site visit
Federal rule (42 CFR 455.432, 455.450(b)-(c)): the state must do site visits before and after enrollment for providers in the 'moderate' or 'high' risk levels, and any enrolled provider must allow unannounced on-site inspections.
Revalidation
IHCP has said DME and home medical equipment providers (including pharmacies with DME/HME specialties) revalidate every three years and other specialties every five years. Due-date lists are published through December 2026, and revalidation is done in the IHCP Portal or by mail packet. Federal rule (42 CFR 455.414): every enrolled provider must be revalidated at least once every 5 years.

Full Indiana Medicaid enrollment guide →

Certificate of need

Does Indiana require a certificate of need?

For this business
Required (licensing source)
CON program
Yes
Program
Certificate of Need for Comprehensive Care Health Facilities
Services covered
  • comprehensive care health facilities (nursing homes): new facilities, added beds, bed transfers and Medicaid certification of beds
Moratoria
Except as the CON chapter allows, comprehensive care beds may not be added or transferred, new comprehensive care facilities may not be built, and Medicaid certification of comprehensive care beds may not be added or transferred (IC 16-29-7-10). A CON may not be granted where the receiving county's comprehensive care occupancy is below 85% or would drop below 85%.

Indiana certificate of need details →

Labor

Indiana wage floor

State minimum wage
$7.25 an hour
Effective
2009-07-24
Scheduled increases
No scheduled change found in the official sources reviewed.
Rate pass-through
From 2025-07-01, for the Health and Wellness, TBI and PathWays for Aging 1915(c) waivers and Money Follows the Person, attendant care providers must spend at least 70% of the hourly rate on direct-service compensation, and structured family caregiving providers at least 60% of the daily rate on caregiver stipends and direct-service pay. Providers sign a compliance attestation and keep records for audit.
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

Indiana market size

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

Skilled nursing facilities — active organization NPIs (NPPES)
846 (as of Sep 13, 2026)
Medicare/Medicaid-certified nursing homes (CMS Care Compare)
507 (as of Aug 1, 2026)
Total Medicaid and CHIP enrollment (latest reported month)
1,358,600 (as of Jun 1, 2026)
Rates

What Indiana Medicaid pays

Skilled nursing facilities: published Indiana fee-for-service rates, each linked to its source.

ServiceCodeIndiana ratePer hourRank
Nursing home stay (daily rate)Physician or licensed psychologist$309.47per day——
Hospice room and board in a nursing home$294.00per day—4 of 6

All Indiana Skilled nursing Medicaid rates, ranked →

FAQ

Frequently asked questions

Do you need a license to start a skilled nursing facility in Indiana?

Indiana requires a Comprehensive care facility license from Indiana Department of Health, Division of Long Term Care to operate a skilled nursing facility. Fee: Applicant pays the license fee set by rule; amount not restated here.

How much does a skilled nursing facility license cost in Indiana?

Applicant pays the license fee set by rule; amount not restated here. Renewal: Every year · Renewal application due at least 45 days before the license expires..

Does Indiana require a certificate of need for a skilled nursing facility?

Yes, according to the licensing source. Indiana's CON program covers: comprehensive care health facilities (nursing homes): new facilities, added beds, bed transfers and Medicaid certification of beds.

How do you become a Medicaid provider in Indiana?

Enroll through IHCP Provider Healthcare Portal (IHCP Portal) (https://www.in.gov/medicaid/providers/business-transactions/ihcp-provider-healthcare-portal/), run by Gainwell Technologies (IHCP fiscal agent for provider enrollment and revalidation).

What does Indiana Medicaid pay a skilled nursing facility?

Indiana Medicaid pays $309.47 per day for nursing home stay (daily rate), effective Jul 1, 2026.