Expert Guideline for Applying ASAM-Compliant Inpatient Behavioral Health Licensing in CA

The behavioral health business landscape in California is changing with new regulatory updates from the state to improve inpatient facility operations. For new or existing behavioral health business owners, understanding the ASAM inpatient licensing requirement is crucial to maintaining quality standards and complying with the regulatory requirements. This guide will explain:

• ASAM inpatient licensing requirements
• Step-by-step guide on applying
• Common mistakes in applying
• Importance of ASAM in M&A

Ready to apply for ASAM inpatient licensing or expand your behavioral health facility services? Consult Strategique Partners’ licensing experts!

ASAM Behavioral Health Licensing for California: Why does it matter?

Complying with ASAM 4th Edition inpatient requirements makes the facility eligible for state reimbursement programs and proves beneficial regarding facility valuation, M&A, and operational success.

ASAM Criteria 4th edition is a comprehensive framework for individuals with addiction and mental health disorders to receive proper care at the inpatient facility. This criterion covers six dimensions including biomedical condition and end stage of recovery as explained in the image.

 

 

Facilities that want to improve their revenue through reimbursement and funding must deliver care covering these core elements. Review our guide on behavioral health licensing to know more about licensing importance.

Requirements of ASAM-Compliant Inpatient Facility Licensing for California

California Department of Health Care Services (DHCS) has made it mandatory for inpatient behavioral health facilities to adhere to certain requirements to qualify for licensing. Following are some of the key points in obtaining the compliance check:

1. ASAM-Oriented Treatment Plans

The treatment plans of your behavioral health facility must align with the ASAM’s dimensional assessment. This includes covering all the six core elements as already explained in the image. 

2. Training of the Staff

Staff working in your facility need to complete ASAM-approved training programs included in ASAM Criteria 4th edition. In this way, they can cover the updated foundational knowledge on covering the quality standards.

3. Medication-Assisted Treatment

Inpatient facilities must have the ability to dispense addiction treatment medications such as naltrexone or buprenorphine for managing withdrawal and supporting recovery. But they should be provided in accordance with the ASAM guidelines.

4. Dual Diagnosis Services

Facilities opting for inpatient licensing must provide comprehensive services including both mental health and substance use disorder treatment in line with ASAM’s holistic treatment approaches.

Fulfilling all the ASAM requirements not only makes you eligible for licensing but also improves standards of care and facility valuation.

Step-by-Step Guide for the Licensing Process in DHCS

It is not an easy task to complete the DHCS licensing process for your behavioral health facility. However, following structural steps can guide you in the process of obtaining the license without any hurdles in the way.

1. Pre-Application Preparation

Pre-application preparation involves three crucial stages:

Gap Analysis

Conduct operational due diligence to analyze the gap between the quality of care being provided in your facility vs the standards of ASAM 4th edition. Identify gaps in your services, policy, or treatment programs that may need upgrading according to the standard protocols.

Staff Training

The clinical and administrative staff will need to enroll in ASAM foundational courses so that they are experienced enough to implement the latest standards effectively.

Policy Updates

Plan your policies related to admission, discharge, and treatment procedures in accordance with the ASAM dimensions, specifically dimension 6 which emphasizes patient-centric care.

2. DHCS Application Submission

Once all of your prerequisites are completed, it is time to submit your actual application for the DHCS licensing. The documents to be submitted will include:

ASAM-Compliant Treatment Program Manuals

This will include a detailed explanation of how your facility’s programs align with the ASAM inpatient licensing requirements. Make sure it contains a reference to the ASAM six dimensions eligibility reference with your facility programs.

Staff Credentials

The certification of training your staff took from the ASAM training programs will be included in this section along with the staff experience and expertise documents. 

Flooring Plan

For inpatient licensing, of course, you will need to provide the flooring and interior planning of the facility. so that it demonstrates your facility is appropriately equipped with the necessary prerequisites for withdrawal management and MAT services.

3. Survey and Compliance Review

After applying, DHCS inspectors will survey your location and facility during which they will:

Verify the Patient Assessments

This will include ensuring that the facility is using ASAM’s Levels of Care Assessment guide to access patients during the intake procedure. This helps in program management while accessing patient’s treatment needs.

Review Treatment Planning

Your facility treatment programs will be accessed to analyze whether they align with the appropriate designation of care provided by the guidelines of ASAM such as continuum of care.

If you are looking for experts to align your facility programs according to ASAM consult our Program development and management experts!

Common Mistakes and their Solutions

While the licensing process seems straightforward after reading the guide there are some common pitfalls business owners often fail to cover while following ASAM compliance. Some of the challenges you may face and how you can overcome them include:

Incomplete Staff Training

Consult a behavioral health expert or use ASAM’s e-learning center to ensure that the staff is equipped with the latest knowledge and trends for maintaining quality care.

Mismanaged Level of Care

Optimize your administrative software according to the ASAM assessment modules or use ASAM continuum software to standardize your assessment module.

Overlooking Dimension 6

Consult program management experts to integrate a shared decision-making framework while proceeding with the treatment plan so that compliance can be regulated to improve treatment outcomes.

Role of ASAM Compliance in Behavioral Health M&A

ASAM compliance helps in deciding the valuation and risk-free investment planning for investors and behavioral health entrepreneurs before they acquire or merge with a running facility. Here is how during due diligence you can take ASAM compliance as a checklist for analyzing and planning your future goals:

• Confirming active DHCS licensing
• Audit patient records to check assessment and treatment modules
• Dual diagnosis and MAT inclusion is followed or not
• Standardize EHR systems to ensure compliance with all the ASAM dimensions
• Ensure staff is retrained on ASAM quality of care before beginning services after integration

After a successful M&A, make sure to comply with the ASAM guidelines to ensure your revenue success. Review our guide on behavioral health M&A to understand from a business perspective.

Consult Licensing Expert to Acquire ASAM Compliant Licensing

Licensing and legal processes can be baffling and tiresome if done without prior experience and expertise. It is advised to consult a behavioral health legal expert who can help you in application preparation and compliance check. Consult Strategique Partners to begin your ASAM Compliance journey without the fear of any legal or administrative hurdles. We provide complete support in: 

• Regulatory compliance
• Accreditation
• Licensing
• Program Development
• M&A Consultation

So, Contact us to schedule your legal advisory appointment today!

Frequently Asked Questions about ASAM Compliance

Some of the common confusions people have about ASAM compliance include:

How Long does it take to obtain DHCS Licensing for an inpatient ASAM-Compliant Facility?

The application and processing time is between 6 to 12 months. However, the delay can happen due to the facility’s inability to prepare according to the requirements, outdated policies, and incomplete staff training.

Does ASAM Licensing Affect Behavioral Health Facility Valuation

Yes! Facilities that are not compliant with ASAM face a devaluation of 15-30% due to reimbursement issues and risks of non-compliance associated with them.

What happens if the facility fails to comply with ASAM standards

The non-compliance can be disastrous for business as it will impose a fine of $10,000 per day, loss of M&A opportunities, higher risk of bans, and loss of drug Medi-Cal funding opportunities.