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Army Veteran Owned | Expert Surety Bonds Since 2004
Have a question? +1 815-826-6324 (815-8-BondAI) phil@AmericasSuretyBonds.com
Army Veteran Owned | Expert Surety Bonds Since 2004
The $50,000 surety bond is one of the last items standing between a new Ohio skilled home health agency and a license number. It is a straightforward filing, not a hurdle. You pay an annual premium instead of parking $50,000 of working capital with the state, most applicants are quoted the same day, and the executed bond form attaches directly to the Ohio Department of Health application.
Ohio requires a $50,000 surety bond from any home health agency or nonagency provider applying for a Skilled Home Health Services license, unless the applicant was already providing direct care on or immediately before September 30, 2021. The bond is filed with the Ohio Department of Health alongside the $250 nonrefundable application fee, and it must be written by a surety licensed to do business in Ohio.
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Ohio licenses home health providers under Chapter 3740 of the Ohio Revised Code, with the application rules at Ohio Administrative Code 3701-60-03. There are two license types. Skilled home health services covers nursing care, physical therapy, occupational therapy, speech-language pathology and medical social services, and carries the $50,000 bond described on this page. Nonmedical home health services covers personal care work such as bathing, dressing and meal preparation, and carries a $20,000 bond instead.
The bond is not required of everyone. Ohio Revised Code 3740.03 lets an applicant submit either proof that it was providing direct care before the effective date of licensure, meaning on or immediately prior to September 30, 2021, or a $50,000 surety bond issued by a company licensed in this state. Established agencies clear the requirement with proof of prior operation. New agencies post the bond.
This trips up a lot of applicants. Ohio recognizes several pathways that satisfy the substantive licensure prerequisites: certification for participation in Medicare, accreditation by an approved national body such as ACHC, CHAP or the Joint Commission, or certification by the Ohio Department of Aging under section 173.391 for community-based long-term care. Being Medicare certified or accredited is a very good thing for a skilled agency. It is not a bond waiver. The only thing that removes the bond requirement is having been in operation before the September 30, 2021 date.
A surety bond is not insurance protecting the agency. It is a three-party guarantee. The agency is the principal, the Ohio Department of Health is the obligee, and the surety stands behind the agency's compliance with Chapter 3740 and the rules adopted under it. If a valid claim is paid, the surety pays it and then seeks reimbursement from the agency. That structure is why the annual premium is a small fraction of the $50,000 face amount, and why underwriting looks at the owner's credit and the agency's financial position.
ODH charges a nonrefundable $250 application fee. The license runs three years from issuance, and a renewal application is only treated as timely if it is filed at least 90 days before expiration. Because a lapse in the bond can put the license at risk, most agencies keep the bond on continuous annual renewal across the full three year term rather than treating it as a one time filing.
A $50,000 license bond is a modest exposure and the underwriting reflects that. The application asks for the legal entity name exactly as it appears on the ODH filing, ownership information, the federal EIN, and authorization to review credit. Larger agencies or applicants with credit issues may be asked for a recent financial statement. Approval is normally same day. The entity name on the bond has to match the ODH license application character for character, or the department will return the filing.
You are exempt only if the agency or nonagency provider was already providing direct care on or immediately prior to September 30, 2021. Established agencies submit proof of prior operation instead of a bond. Every agency starting up today posts the $50,000 bond.
No. Medicare certification, accreditation by ACHC, CHAP or the Joint Commission, and Ohio Department of Aging certification all satisfy licensure prerequisites under ORC 3740.03, but none of them removes the bond requirement. The only thing that does is having been in operation before September 30, 2021.
You pay an annual premium, not the $50,000. The premium is a percentage of the bond amount, driven mainly by the owner's personal credit and, for larger agencies, the business financials. Well-qualified applicants sit at the low end of the license bond range. Applicants with credit problems pay more but are still routinely written. Get your actual number instantly rather than working from a range.
License type, not company size. Skilled home health services means nursing, physical therapy, occupational therapy, speech-language pathology or medical social services, and the bond is $50,000. Nonmedical home health services means personal care work such as bathing, dressing and meal preparation, and the bond is $20,000. If you intend to hold both licenses, confirm with ODH which bond or bonds your applications require before you buy.
Before, or at the same time. ODH lists the $50,000 Skilled Home Health Services Surety Bond Form as one of the items that goes with the application, along with the $250 nonrefundable fee. Approval on a bond this size is normally same day, so it does not need to delay your filing.
The bond is written for a one year term and renews annually. The ODH license runs three years from issuance, and a renewal application has to be filed at least 90 days before expiration to be considered timely. Keep the bond continuously in force across the full license term so a lapse never becomes a licensing problem.
No. It protects the public and the state. If a valid claim is paid, the surety pays it and then seeks reimbursement from you. Agencies that want coverage for their own losses need general liability and professional liability insurance, which are separate products from the bond.
Yes. Ohio licenses nonagency providers, meaning self-employed individuals who provide direct care and do not employ or contract with anyone else to provide the services. If you are required to be licensed for skilled services and you started after September 30, 2021, the same $50,000 bond applies to you as to a multi-office agency.
Usually yes. A $50,000 license bond is a small exposure and the market is broad. Credit affects the rate rather than eligibility for the large majority of applicants, and a recent financial statement often helps offset a weak credit score. Apply and see the real number before assuming you cannot get bonded.
The claimant submits documentation to the surety. The surety investigates, and if the claim is valid it pays up to the $50,000 limit and then pursues the agency for the amount paid plus costs. Paid claims also make future bonding harder and more expensive, so a claim notice deserves attention the day it arrives.
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