Is a Brightstar Care agency prohibited from participating in Medicare?

According to Brightstar Care's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from participating in Medicare. The Franchise Agreement explicitly restricts participation in Medicare or other governmental payor programs, with a specific exception for programs funded by the Department of Veterans Affairs.

Even though a Brightstar Care agency cannot directly participate in Medicare, the FDD mentions that the agency may provide staff to other facilities that do participate in Medicare and/or Medicaid programs. However, these facilities must comply with Medicare laws, which include not employing providers excluded from those programs. Therefore, Brightstar Care franchisees must ensure their employees are screened for possible excluded status in these or other payment programs.

This restriction on Medicare participation could impact a franchisee's potential revenue streams, as Medicare is a significant payer in the healthcare industry. However, the ability to participate in VA programs and provide staffing to Medicare-participating facilities offers alternative avenues for revenue generation. Prospective franchisees should carefully consider the implications of this restriction and explore opportunities within the allowed parameters.