Is a Brightstar Care franchisee currently allowed to participate in government payment programs?
Brightstar_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
You will operate an agency that provides and markets comprehensive non-medical and/or medical home care services to national account clients or home care clients within their home or residence as well as supplemental healthcare staff to institutional clients according to the administrative and operational components noted in your Franchise Agreement (the "BrightStar Care Agency Program" or "Program"). A "private-duty client" means a client who receives care in the client's home or other place of residence regardless of the nature of the payor for such care (e.g., a private individual, long-term care insurance, commercial insurance, National Accounts payor, Medicare Advantage, Medicaid, etc.). A copy of the Franchise Agreement is attached as Exhibit B to this Disclosure Document. As described in further detail below, the BrightStar Care Agency Program provides franchisees with four primary revenue streams: Non-Medical (Companion) Caregiver inhome care services, Personal Care in-home care services, Medical Skilled Care in-home care services, and Supplemental Healthcare Staffing. As a new location, the training will emphasize Companion, Personal Care, and Skilled in-home care services as well as utilization of the BrightStar Care National Accounts Program. You will be offered supplemental training for Medical Skilled in-home care services (where allowed by state licensure laws) and Supplemental Healthcare Staffing. Some BrightStar Care franchisees offer all four services, and some do not. For example, not all franchisees provide Medical Skilled Care in-home care services where state regulations prevent their ability to do so (as further described below) or where Certificate of Need laws do not allow some or all medical skilled services.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 80–81)
What This Means (2025 FDD)
According to Brightstar Care's 2025 Franchise Disclosure Document, Brightstar Care franchisees can serve clients who use government payment programs. The FDD specifies that a "private-duty client" includes those whose care is paid for by various sources, including government programs like Medicare and Medicaid. This indicates that Brightstar Care agencies are permitted to provide services to clients utilizing these payment methods.
Brightstar Care offers franchisees four primary revenue streams: non-medical caregiver services, personal care services, medical skilled care services, and supplemental healthcare staffing. The ability to serve clients covered by government programs like Medicare and Medicaid can be a significant factor in growing these revenue streams, particularly for medical skilled care services. However, the availability of medical skilled care services may be restricted by state licensure laws or Certificate of Need laws.
For a prospective Brightstar Care franchisee, this means they have the potential to tap into a broader client base by accepting clients with government-funded healthcare. However, franchisees should investigate their state's specific regulations and licensing requirements to understand the extent to which they can offer medical skilled care services and participate in government payment programs. Understanding these regulations is crucial for developing a business plan and projecting potential revenue.