Licensing and regulatory compliance pose a unique challenge when starting a substance abuse treatment center. They often keep investors from entering the market, which is valued at USD 83.78 billion in 2023. The expanse of the market and its growth offerings cannot be ignored just because of the strictness of regulations. Therefore, this blog will help you navigate the licensing landscape when starting a substance abuse treatment center.
Are you interested in starting a substance abuse treatment center and navigating its ensuing licensing requirements? Get connected with Strategique Partners here.
Level of Regulatory Requirements for a Substance Abuse Treatment Business
The main difficulty offered by the regulatory landscape in addiction treatment is its tripartite nature. There are three different levels of governmental requirements covering the following aspects:
- Licensing
- Operational
- Staffing
- Zoning standards
You must address all these requirements of opening a rehab center individually. These are the levels of regulatory compliance:
1. Federal Regulations
At the first level comes the federal regulations which are overseen by:
- Substance Abuse and Mental Health Services Administration (SAMHSA)
- U.S. Department of Health and Human Services (HHS)
- Drug Enforcement Administration (DEA)
These federal-level agencies control different aspects of addiction treatment care services. For instance, if you are to offer methadone-assisted treatment in your rehab facility, you will need to be authorized by the DEA.Â
2. State Level Regulations
This is the most difficult part as each state in the US has its own set of rules and regulations for addiction treatment businesses. No good-for-all guide can comprehensively cover the unique requirements of individual states. Normally, the state has its departments of drug treatment and addiction control likeÂ
- Pennsylvania’s Department of Drug and Alcohol Programs
- New York State’s Office of Addiction Services and Support
Therefore, opening a rehab center in New York State is essentially different from opening an addiction treatment center in Pennsylvania because of the different state requirements for opening the facility.Â
3. Regulatory Requirements for Particular Zones
The individual zone or region that you select for your facility will have requirements like
- Prior Approval from Municipalities
- Community Approvals
- Building Standards
- Parking Permits
This is managed by the city or zoning administration. Behavioral health business-specific real estate services offered by Strategique Partners can prove very fruitful.Â
Types of Licenses for Starting an Addiction Treatment Center
There is a varying range and degree of licenses that you will be required in developing your substance abuse treatment center. They depend on the nature of care programs. You can offer IOP services, detox facilities or residential treatment programs in your substance abuse treatment center. Each program can have unique licensing requirements. This is where Strategique Partners’ licensing services can guide you.
1. Addiction Treatment Center License
First of all, you need a license to offer particular addiction treatment services. Typically, state bodies are responsible for licensing your business. You will need to research the licensing structures of your state and learn how to get your facility licensed by the authorized body in your state. A license is a must to operate legally.Â
2. Drug Enforcement Administration (DEA) Registration
Some substance abuse treatment centers go for controlled drugs for treatment purposes. These drugs may include:
- Methadone
- Suboxone
- Marijuana (allowed only in some states)
To be able to use them in your treatment services, you require a DEA certification. You will need to register your care program with them. You can hire a drug rehab consultant to help you out with DEA registration.Â
3. Licensed Staff
Next, you need to ensure that the medical staff, including the counselor, medical physician, and therapist, is professionally licensed and authorized to perform the care services. Their credentials are generally verified by the state-level bodies. If you face difficulties in finding licensed staff, you can easily outsource this responsibility to the staffing services of experts.Â
4. Zoning Permits
Government bodies stipulate very precise requirements about the location and amenities at your facility. You will need to make sure you comply with all the occupancy and building codes.Â
Steps to Get Licensing for Your Substance Abuse Treatment Center
Getting licensed while opening a drug rehab center is challenging. However, this can be made easier by doing this in a very organized manner and following the most essential steps in starting it. We have compiled a list of the steps required to get licensed in the following lines:
Look for Licensing Requirements of Your State
The first step is to research the state-specific requirements. You can know about the federal level regulations easily. However, state-level requirements for opening a rehab business are to be researched in depth.Â
Get Your Documents Ready
Next comes the phase of getting all the documents ready. You will need to have the documents containing the following:
- Staff Details
- Location and Facility Details
- Compliance Strategy
- Details About the Services to Be Offered
These documents will back your bid to develop and operate the treatment facility responsibly and hence gain credibility for your addiction treatment facility.Â
Submit the Application
Once your documents are ready, it is an indication of your readiness to submit your application for licensure. You should not delay as the licensing can take some time. Furthermore, you should also consider the licensing application fee when you are considering how much it costs to open an addiction treatment center.Â
Prepare for Site Visits and Inspection of Your Treatment Facility
The final part is to be prepared for the on-site inspections of your facility by experts. They make sure that your facility complies with all of the governmental requirements. You can get your facility prepared beforehand with the help of our preparations to launch assistance.Â
Get Your Addiction Treatment Facility Licensed with Strategique Partners
Strategique Partners is an expert in company startups in the booming behavioral health market with a special focus on substance abuse treatment facilities. We help you with the opening and licensing of your facility. In this regard, you can find the following of our services useful:
We have primarily focused our energies and expertise on eradicating the menace of addiction and substance abuse. It has helped us develop and grow countless drug rehab facilities. We have tried to make them profitable by giving primacy to compensation and sustainability.Â
If you are worried about the licensing and regulatory requirements of your substance abuse treatment center, you can easily contact us today to start and run your facility legally.Â
FAQs Regarding Licensing and Regulatory Requirements of a Substance Abuse Treatment Center
Here, we enlist the commonly asked questions regarding the legal opening of an addiction treatment facility.
Do I Need Accreditation to Start a Substance Abuse Treatment Center?
It is not a requirement to get accredited in starting and running an addiction treatment center. However, it surely has a great part to play in building credibility, enhancing quality, and quicking reimbursement from insurance companies. Therefore, you should consider getting accredited by CARF or Joint Commission.Â
How Long Does It Take To Open a Rehab Center?
It takes a period of a few months or more to open a rehab facility. However, the time frame of launching depends on processes like credentialing with insurance companies, licensing, facility preparation, and staffing.
How Much Does It Cost to Open a Drug Rehab Facility?
The exact cost of opening a drug rehab center may vary from state to state and location to location. In addition, the costs depend on the size of the facility, the capacity of client intake, the treatment programs offered, and the quality of staff.Â
What Are the Steps to Start a Substance Abuse Treatment Center?
You can start a treatment facility for people suffering from substance use disorder by following these steps:
- Researching the Market
- Developing Business Plan
- Securing Financing
- Getting Licensing and Regulatory Approvals
- Finding an Ideal Location
- Searching for Professional Staff
- Launching the Facility
These steps are essential in opening a facility of the said nature.Â
Additional Resources
From Author
Licensing has been an area of concern for new business entrants in the behavioral health market. The same stays true for substance abuse treatment centers. My time offering consultancy to drug rehab startups has allowed me to get a go at the licensing and regulatory requirements across many states. One thing that I made of the licensing process throughout these years is that, despite the difficulties of navigating the regulatory landscape, it is always beneficial in adding strength to your business. You can not only freely operate if you are licensed but also capture greater credibility. Therefore, licensing, accreditation and regulatory compliance have a greater part to play than just making you eligible to offer your treatment services in the rehab sector. You should see the licensing in this way to make the process easier. Join hands with experts in licensing addiction treatment centers to have your base covered.