Can NP open their own nursing home?

Advanced Practice Columnist / Guide · Jan 27, 2014

There are many different parts to your question.

One, simply owning a nursing home as a Nurse Practitioner. This is certainly possible because of the fact that owning a nursing facility is not any different than owning a healthcare business. While it is probably beneficial for a nursing home owner to be a healthcare professional (such as an NP), it is not a requirement to be one. As with any business, what you need is capital and knowledge of laws regarding running a business and complying with state health regulations. Here is a link to a nurse who eventually became the owner of a nursing home he used to work in: NBC

Two, owning the Nursing Home and acting as a Nursing Home Administrator as a Nurse Practitioner. This is also possible in the sense that many administrators have healthcare backgrounds with additional training in the field. Nursing home administrators in California are licensed by the state. You can learn about licensing here: CDPH

Three, owning the Nursing Home and taking care of the healthcare needs of the residents as a Nurse Practitioner. This is going to be complicated. First, California is not an independent practice state. While CMS (the federal Medicare and Medicaid administrator) allows NP's to see patients in nursing homes, California requires that NP's practice under a Standardized Procedure signed in agreement with a Physician.

Also, California has explicit rules prohibiting non-physicians from owning a healthcare practice such as a clinic (i.e., such as an FNP having a clinic). The way around it is to share ownership with a physician. Here is an expert opinion on the matter from Carolyn Buppert (an NP expert on NP laws and business practice): Medscape

So putting this all together, you certainly could manage to perform all the above three roles with capital and the right amount of knowledge and training depending on the size of facility you have in mind. However, there will be hoop jumping required.

annie753 · Jan 28, 2014

Thank you for your through reply! :)

Wish I can open one within 10 years!