Home care referral sources: who they are and how to approach them
By Scott McKenzie, founder of Home Care Agency Blueprint · Updated
Referrals usually come from people who help families when care at home becomes necessary: hospital and rehab discharge planners, skilled nursing facilities, physician offices, elder law attorneys, senior living communities and community organizations. Build relationships by being useful and easy to reach, and do not give referral sources anything of value in return for referrals without legal advice.
Who to get to know
| Referral source | Why they may refer | How to approach |
|---|---|---|
| Hospital and rehab discharge planners and case managers | They help patients plan for going home. | Ask how they prefer to hear from agencies, and share your services and service area in writing. |
| Skilled nursing facilities | Residents going home after a short stay may need help. | Introduce yourself to the social services or discharge team. |
| Physician offices | Patients and families ask them where to find help at home. | Leave a short, accurate description of your services with the office manager. |
| Elder law and estate planning attorneys | Clients planning for long-term care ask them about options. | Explain what you do and do not offer, in plain terms. |
| Senior living communities | Some residents need extra help to keep living where they are. | Ask whether outside agencies can serve residents, and how. |
| Community organizations | Senior centers, faith groups and caregiver support groups hear from families first. | Attend, listen and offer useful information, not a sales pitch. |
This list is a starting point from our own planning, not a ranking. Which sources matter most depends on your area and services.
Relationship basics
- Know what each source does and which of its patients or clients might need care at home.
- Describe your services, service area and how fast you can start, accurately and in writing.
- Make it easy to reach you, and answer every referral call.
- Close the loop: thank the source and let them know what happened, sharing client information only as the client permits and the law allows.
- Follow up on a schedule you set, and keep notes in one place.
Do not pay for referrals
HHS-OIG describes the federal Anti-Kickback Statute as a criminal law that prohibits the knowing and willful payment of “remuneration” to induce or reward patient referrals or the generation of business involving any item or service payable by the federal health care programs. Remuneration includes anything of value, not just cash. OIG puts it plainly: in some industries it is acceptable to reward those who refer business to you, but in the federal health care programs, paying for referrals is a crime. The law covers both the people who pay and the people who receive.
OIG explains that safe harbors protect certain payment and business practices, but an arrangement must fit squarely in a safe harbor and satisfy all of its requirements. OIG also describes a separate law on offering remuneration to Medicare and Medicaid beneficiaries to influence them to use services. If you are private-pay only today, your state may still have its own rules on referral payments, and you may bill Medicaid or another program later. Before you give a referral source a gift, a meal, a sponsorship or a fee, or agree to pay a placement or referral service, check the arrangement with a health care attorney.
Never pay for referrals without legal advice. This site explains the rules at a high level and is not legal advice. Before you give or pay anything of value to a referral source, or agree to any per-referral or per-placement fee, check the arrangement with a health care attorney.
Your state sets the details. Federal law and platform policies set a floor for how you market. Your state may add its own rules, for example on how licensed agencies advertise, what they must say about their license, and payments for referrals. Check with your state licensing agency and a health care attorney. For licensing, homecarelicenseguide.com, also published by Home Care Agency Blueprint, collects each state’s sources.
What to do next
Frequently asked questions
Can I bring lunch or gifts to a referral source?
Ask a health care attorney first. HHS-OIG says remuneration includes anything of value, and paying for referrals of business payable by federal health care programs is a crime. Your state may have its own rules.
Can I pay a senior placement or referral service?
Check with a health care attorney before you agree to any per-referral or per-placement fee. Whether an arrangement is lawful depends on its terms, the payers involved and your state’s rules.
Want to talk through your options?
A free 15-minute clarity call with Home Care Agency Blueprint. It helps people start home care agencies, so expect that perspective. You do not need a marketing plan first.
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