If you run a business that provides healthcare services in Bermuda, you may have heard the term “health service provider license” more often in recent years.
For businesses, the question is straightforward: Do I need a license? Healthcare businesses come in many forms, and not every business that operates in the health and wellness sector necessarily meets the criteria for licensing as a health service provider.
The Bermuda Health Council is helping to make that distinction clearer through health service provider licensing, which establishes a framework for the regulatory oversight of healthcare businesses in Bermuda.
So, what exactly is a health service provider?
Under the Bermuda Health Council Act 2004, a health service provider is defined as a person, group of people or organisation operating a business that offers health services to the public.
Health services are activities that provide health care to a person, rather than activities that support general health, fitness or wellbeing. This includes services that assess, diagnose, treat, manage or prevent health conditions, as well as rehabilitation, long-term care, diagnostic and other ancillary health services. In practice, the Health Council uses the World Health Organization’s System of Health Accounts (SHA 2011) classification framework to help determine which businesses fall within the scope of health service provider licensing. The Health Council’s Health Service Provider Classification Guide is a useful resource to help businesses determine whether they may be considered a health service provider and how their business may be classified.
A simple way to think about it is this: if more than half of your business activities involve providing health care services, and those services are delivered by appropriately regulated health professionals, your business is likely eligible for licensing.
The Council encourages businesses to reach out if they are unsure where they fit.
“We recognise that the health sector continues to evolve and that businesses may not always be sure whether their services fall within the scope of health service provider licensing. We encourage business owners to contact us early, ask questions and use the guidance available on our website. Our goal is to help people understand the requirements and navigate the process,” says a spokesperson from the Health Council’s Registrations & Licensing Team.
Why does licensing matter?
Healthcare is personal. Whether someone is visiting a physiotherapist, receiving diagnostic services, accessing specialist care or using another health service, they should be able to have confidence in the organisation providing that service.
Under the Bermuda Health Council (Health Service Providers) (Licensing) Regulations 2024, businesses intending to operate as health service providers are required to apply to the Health Council for a license.
For Elisabeth Kast, Programme Manager, licensing is an important part of supporting the safety and quality of health care services provided to the public in Bermuda.
“Licensing helps us understand who is providing health services in Bermuda and provides a framework for ensuring that businesses meet established standards for the delivery of care. Ultimately, it is about protecting the public and supporting the quality-of-care people receive when accessing health services.”
The licensing process considers the business as a whole, including the health services it provides, the professionals delivering those services, and how care is managed and overseen. For example, confirming that health professionals are appropriately registered and qualified, that suitable clinical oversight is in place, and that the business has appropriate arrangements to support the safe delivery of care.
Licensing requirements may vary depending on the type of health services being provided. Where appropriate, the Health Council may also attach conditions or restrictions to a license to address specific requirements that a provider must meet.
What does this mean for a business owner?
If you are planning to operate a healthcare business, licensing should be considered early in the planning process. Business owners are encouraged to apply for licensure up to one year before they intend to begin operations and before making significant financial investments in the business. Applying early allows time for the Health Council to assess the proposed business and identify any licensing requirements that may need to be addressed before operations begin.
It is also important to understand that licensing is an ongoing responsibility. Health service providers must continue to meet applicable standards, operate in accordance with the relevant legislation, and maintain the requirements upon which their license was granted. Providers must also renew their license 60 days prior to expiration.
Business owners should also know that receiving a Health Service Provider license does not automatically mean that the business or the services it provides will be eligible for reimbursement through health insurance.
Licensing and insurance reimbursement are separate processes. Licensing determines whether a business is eligible to operate as a health service provider, while decisions about insurance coverage and reimbursement are made by individual insurers based on their own requirements and payment arrangements.
Business owners should therefore consider whether they meet the requirements for HSP licensure and whether the services they intend to provide are eligible for reimbursement. Approval in one area does not guarantee approval in the other.
What does licensing mean for residents?
For residents, health service provider licensing provides greater assurance that businesses delivering health care services in Bermuda have been assessed against established requirements and are expected to continue meeting applicable standards while licensed.
Licensing also provides greater transparency. The Health Council maintains a Register of Licensed Health Service Providers, which allows members of the public to check whether a business is licensed and view information about providers operating within Bermuda’s health system.
Ultimately, licensing is one part of a broader approach to protecting the public and supporting the safe and appropriate delivery of quality health care in Bermuda.
Thinking about starting a health business?
If you are planning to open a business that provides healthcare services, the Health Council recommends starting with its Health Service Provider Classification Guide and licensing information.
The Health Service Provider Business Licensing Application is available online through the Council’s website.
If you are unsure whether your business requires a license or need assistance completing an application, you can contact the Health Council’s licensing team at businesses@healthcouncil.bm or 292-6420.
For residents, the message is just as simple: when choosing a health service, take a moment to understand who is providing your care and whether the organisation is appropriately licensed.
Knowing how Bermuda’s health system works can help all of us make more informed decisions about the care we receive.
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