California Home Health: Moratorium on Licenses and Expanded Compliance & Oversight Requirements
On August 27, 2026, the California Department of Public Health (CDPH) issued All-Facilities Letter (AFL) 26-28 to all Home Health Agencies (HHAs). The purpose of this directive is to inform providers about the passage of Senate Bill (SB) 164, which institutes a strict moratorium on new home health agency licenses and dramatically expands compliance and oversight requirements.
KEY PROVISIONS OF AFL 26-28 & SB 164
Licensure Moratorium: A freeze is imposed on the issuance of new home health agency licenses and branches. Prospective applicants must now definitively demonstrate a geographic "unmet need" for home health services to bypass the freeze.
Mandatory Leadership Reporting: Existing and new home health agencies are required to explicitly designate and report their administrators and other key management personnel to the CDPH by March 31, 2027.
Expanded Enforcement Authority: The CDPH has been granted expanded statutory grounds to deny, suspend, or revoke home health agency licenses. This change is part of a larger state-level effort to eliminate fraudulent operators and improve overall patient care standards.
Travel and Distance Limits: The law directs the state to update existing home health regulations to explicitly define and limit the maximum time and distance staff members are permitted to travel to reach patients.
WHY THIS CHANGE WAS MADE
The implementation of SB 164 mirrors recent regulatory crackdowns seen in California's hospice sector. It was enacted as part of a budget and anti-fraud reform strategy designed to root out predatory licensing setups, strengthen operational accountability, and protect vulnerable patients receiving clinical care in their homes.
