Home Care's Booming, and So Is Regulation

As the first baby boomers turn 65 this year, entrepreneurs see opportunity. The number of companies providing home health care or services such as assistance in dressing, bathing, and cooking increased by more than 50 percent in the past decade, U.S. Census Bureau data show. Now regulators are scrambling to catch up with the growing industry.

Home-care companies aren't regulated in about two dozen states, and just a handful require licenses for companies that provide nonmedical services. Today the industry faces a hodgepodge of inconsistent rules that advocates say puts vulnerable people at risk of financial exploitation or physical abuse. In states that require licensing, many operators ignore regulations because the costs of complying are high and the risk of getting caught is low, people in the industry say.