Everything you need to know about Prescribed Pediatric Extended Care — medical daycare for children with complex health needs, how it’s funded, and why it’s one of the strongest healthcare business opportunities in Florida.
A PPEC center (Prescribed Pediatric Extended Care center) is a licensed healthcare facility that provides medical daycare for children with complex health conditions. These are children who need continuous skilled nursing care but can be safely managed outside of a hospital.
Think of it this way: a regular daycare watches healthy children while parents work. A PPEC center provides medical care — skilled nursing, medication administration, ventilator management, tube feeding, developmental therapies — for children who are too medically complex for regular childcare but don’t need to be hospitalized.
PPEC centers fill a critical gap in the healthcare system. Before PPEC existed, families of medically complex children had two options: keep the child at home (often requiring a parent to quit their job) or keep the child in the hospital (at enormous cost). PPEC gives these families a third option — a safe, medical environment during the day so parents can work, attend school, or simply take a break from 24/7 caregiving.
PPEC centers serve children from birth through age 20 who have medically complex conditions requiring continuous skilled nursing care. To be eligible, a child must have a physician’s order prescribing PPEC services and meet medical necessity criteria established by Florida Medicaid.
PPEC centers provide comprehensive medical and developmental services throughout the day. The 2026 Medicaid reimbursement rate of $281.68 per full day (T1025, 5–12 hours) generally covers all of the following:
For most families, PPEC services cost nothing out of pocket. Services are 100% covered by Florida Medicaid for eligible children, with zero copays. Medicaid and Medicaid-managed plans like Sunshine Health, Molina, and Aetna Better Health cover the full cost.
| Service Type | Duration | Billing Code | 2026 Rate |
|---|---|---|---|
| Full Day | 5 to 12 hours | T1025 | $281.68 |
| Partial Day | 4 hours or less | T1026 | $44.73/hr |
| Private Pay | Full day | — | $250–$400 |
Source: Florida Agency for Health Care Administration (AHCA), 2026 Medicaid Fee Schedule
Parents often ask how PPEC compares to other care options. Here’s a clear breakdown:
| PPEC Center | Regular Daycare | Home Health | |
|---|---|---|---|
| Licensed medical facility | ✓ | ✗ | N/A |
| RN staffing required | ✓ | ✗ | ✓ |
| Medication administration | ✓ | ✗ | ✓ |
| Developmental therapies | ✓ | Limited | Limited |
| Socialization with peers | ✓ | ✓ | ✗ |
| Ventilator / trach care | ✓ | ✗ | ✓ |
| Parent can work during care | ✓ | ✓ | Varies |
| Medicaid covered (FL) | ✓ 100% | ✗ | ✓ |
| AHCA licensed | ✓ | DCF licensed | ✓ |
Florida is the largest PPEC market in the United States. Here’s why:
For healthcare entrepreneurs, PPEC represents one of the most compelling business opportunities in Florida healthcare. The combination of predictable Medicaid reimbursement, growing demand, and high barriers to entry creates a strong business model.
The regulatory complexity is actually a strategic advantage. Once you’re licensed and operational, new competitors face the same 12–18 month gauntlet to enter the market. This creates a defensible position for established operators.
Opening a PPEC center requires navigating Florida’s AHCA licensing process, securing a suitable facility, enrolling as a Medicaid provider, recruiting qualified nursing staff, and establishing policies and procedures that meet state standards. It’s a 12–18 month process with zero room for error.
Read our complete guide: How to Open a PPEC Center in Florida: The Complete 2026 Guide
Or download the free checklist: PPEC Startup Checklist (PDF)
DDI Resources provides end-to-end PPEC startup consulting. Our team has hands-on experience operating PPEC facilities — we don’t just advise, we’ve done it ourselves. 100% AHCA first-attempt pass rate.
Schedule Free Consultation(786) 299-1926 | issette@ddiresources.com