Start an Assisted Living Facility in Texas | Learn How to Start an Assisted Living Facility in Texas the Right Way

Starting an Assisted Living Facility in Texas can be rewarding and profitable.

Assisted Living Facilities are built to provide housing for older people who are able to take care of themselves without needing intensive medical or nursing care.  Facilities are put in place to help bathe, feed, clothe and wash. In Texas, if any facility cares for 4 or more people, it must be licensed or risk being closed, with sanctions placed on the operator that can include fines and jail time.

In Texas, the Assisted Living Facility can either be of type A, B or C.

Type A Facility

As a provider you may care for individuals that are physically and mentally impaired but capable of evacuating the facility without assistance. These individuals do not need to be monitored during sleeping hours and can properly respond to instructions.

Type B Facility

As a provider you may care for residents who require  the help of staff to leave premises and are incapable of following instructions. They require staff monitoring during late hours and most likely require transfer assistance.

Type C Facility

A four-bed facility that meets minimum standards for enrollment with Department of Aging and Disability Services (DADS) as an adult foster care facility.  As of September 2014 DADS ceased from contracting new adult foster care home providers but honored all old or previously placed contracts.  From this point on you would have to become either a Type A or Type B facility.

Retirement communities, nursing home and assisted living facilities are built to provide a specific level of care in the community. With so many people reaching retirement age, particularly the baby boomers, there is no better time than now to Start an Assisted Living Facility in Texas or any other state.

To help clarify the jargon, I’d like to explain the term ‘Group Home’. This is a generic term used nationally to describe various types of community residential settings.  However it can become more specific from state to state. In fact, it can have as many as 26 different names which includes: Congregate Care and Resident Care Facility. In Michigan group homes are referred to as Adult Foster Care Homes and in Georgia, Personal Care Homes. In Texas they are referred to as Assisted Living Facilities and Adult Foster Care Homes (provider must live in home with residents).

The assisted living facilities may be an apartment or home.

A Texas Assisted Living Facility can offer one or more of the services listed below:

  • Security
  • Transportation
  • Care coordination
  • House cleaning
  • Recreational activities
  • Monitoring/oversight
  • Medication assistance

Even though a Texas Assisted Living Facility can cost less than a general nursing home, it is still comparatively expensive. The cost of assisted living can range from $24,000 per year to $55,000 per year, depending on the services required by the older person. But, there are other fees added to this cost. However, when contracting with DADS providers are compensated for the provision of housing and services rendered.  Although, rates do vary.   Just be aware that the cost of living in a Texas Assisted Living Facility is closely connected to the care provided.

Getting a Texas Assisted Living Facility licensed and becoming a Medicaid Waiver provider is the best way to proceed.  This is a state program that offers negotiated rates and handles resident placements.  Should you desire to open this type of facility, we are more than capable of assisting you.

Traditionally, the cost of services for the Texas Assisted Living Facility for the developmentally disabled are not paid through Medicaid, a Federal program.

Assisted living facilities in Texas are regulated by the Texas Department of Aging and Disability Services (DADS) however, if you are considering opening a Texas Assisted Living Facility, you will need to become familiar with the laws and also be comfortable with answering questions regarding staffing pattern, associated workload and competency level. For instance, among the available staff, how many are working at the same time?  How friendly are they and do they interact with the residents? Is there a registered nurse at the facility and what is their level of experience in the field? These are just a sample of questions.  When relatives are considering placing a loved-one in a facility, no question should be off limits.

Running a Texas Assisted Living Facility may not be easy, but it is rewarding both emotionally and financially if operated correctly.

The Program Manager of the facility must have certain credentials and training before applying to have a home/facility licensed. The home will likely require many modifications including the installation of a sprinkler system, special locks for the doors, bed and door alarms, hard wired and interconnected smoke detectors and assist bars.

It is also necessary to consider the population(s) to be served and number of levels in the home.  This will be outlined in a further article and video coming soon. Subscribe to our YouTube channel to stay connected.

To book a consultation on starting a Texas Assisted Living Facility visit our website at: or call: 800.214.2611