RehabFAQs

how hard is it to open a drug rehab facility?

by Ashly Gutmann Published 2 years ago Updated 1 year ago
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Opening a drug and alcohol recovery center (rehab center to most) requires two pieces that most people forget about. First, how to legally open a recovery center. There is a lot of paperwork and regulation in this space, so licensure is a must. Two, how to keep it profitable and open.

Full Answer

How to open a drug rehab center?

If you intend to start your rehab center business in the United States of America, you would need to ensure that some of the below listed items have been taken care of; Total fee for incorporation – $800; Insurance, license and permits budget – $1,500; Amount needed to acquire a facility for at least a year with reconstruction included – $60,000

Is it difficult to start a drug rehab business?

To learn how to start a drug rehab facility, begin with an attitude of compassion for people suffering from drug addiction. Your background in addiction counseling will be at the core of your business plans, and you will build your business around it. Because drug addiction is a rapidly spreading issue, the need for drug rehab centers is growing, and this can be a very lucrative …

Why are drug rehabs so hard to open?

May 12, 2018 · Some states require a “Certificate of Need” (CON) to start a rehab center. This is a two-step process. First, a letter of intent must be created. Second, an application must be filed. In most cases, applicants may need to pay a CON filing fee. This could be equal to .05% of any proposed capital expenditures.

How much does it cost to start a drug rehab center?

Starting a rehab business is not as difficult as you may think it is. However, there are many things that you need to do in order to be successful in this type of business. This is because that you will be dealing with special people who need personal attention.

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How do I start rehab?

How to start a Rehab CenterStep 1: Do Your Research. You need to know everything that there is to know about the industry. ... Step 2: Find a Location. ... Step 3: Get Licensed. ... Step 4: Formulate a Pro-Forma and Business Plan. ... Step 5: Get Accredited. ... Step 6: Find and Train Staff. ... Step 7: Market. ... Step 8: Open Your Doors.Sep 3, 2020

What are the 5 stages of rehab?

Don't Forget the RehabPhase 1 - Control Pain and Swelling.Phase 2 - Improve Range of Motion and/or Flexibility.Phase 3 - Improve Strength & Begin Proprioception/Balance Training.Phase 4 - Proprioception/Balance Training & Sport-Specific Training.Phase 5 - Gradual Return to Full Activity.

How long does it take to get clean in rehab?

Most addicted individuals need at least three months in treatment to get sober and initiate a plan for continued recovery. Research shows that the best outcomes occur with longer durations of treatment.Nov 4, 2021

What is the success rate of people who go to rehab?

An estimated 43 percent of all people who go to drug rehab successfully complete their treatment programs, while another 16 percent are transferred to other rehab centers for additional treatment. Rehab success rates for those who complete drug and alcohol detoxification are a combined 68 percent.May 29, 2019

What are the 3 P's of recovery?

3 “P's” for Recovery: Passion, Power and Purpose.Aug 18, 2016

What are the 3 phases of rehab?

Athletic trainers (ATs) have traditionally conceptualized rehabilitation programs in terms of 3 distinct physiologic phases: acute injury phase, repair phase, and remodeling phase.

How many days does it take to detox your body?

Detoxing typically takes three to ten days. However, a more severe addiction can extend detox by several weeks or even months. Therefore, you need to know what to expect during detox before you begin the detox process. Detox involves more than just the initial withdrawal symptoms.

How long does a detox cleanse last?

Detox programs tend to last anywhere from three days to two weeks. Many different factors play into how long each specific detox program lasts. The main factor is which substance(s) was/were being abused. Some substances are able to be removed from the system faster than others.

What's the success rate of AA?

Alcoholics Anonymous' Big Book touts about a 50% success rate, stating that another 25% remain sober after some relapses. A study conducted by AA in 2014 showed that 27% of the more than 6,000 members who participated in the study were sober for less than a year.Mar 3, 2022

How many treatment centers are in the US?

In the United States, more than 14,500 specialized drug treatment facilities provide counseling, behavioral therapy, medication, case management, and other types of services to persons with substance use disorders.Jan 17, 2018

How many addicts are there in the US?

There are approximately 20 million individuals in the US with a substance use disorder. In response, thousands of studies have been conducted on the treatment of this enormous public health problem.

How long does it take to get organic results?

As organic results take 4-6 months (which aligns well with how long it can take to get licensure and everything set-up) you can open your doors with clients ready to enter. Rather than starting your online marketing when you get licensure and have 2-3 months of little organic result.

Is recovery industry different from most?

The recovery industry is not much different than most . Your staff will create an amazing experience for your patients. You need to hire the following staff to open a center:

Is opening a treatment center expensive?

Opening a treatment center can be costly. Your largest investment will be into the property and the people running the center. The issue with answering this question is that each center is vastly different. What type of center are you opening, modalities, level of care, city and state, etc.

Step 1: What Kind of Addiction Treatment Facility Do You Want to Open?

There are a few different types of rehab centers out there.#N#The first is a full-continuum rehab facility. In these treatment centers, patients can do everything from detox, live, attend outpatient programs, and patient hospitalization programs (PHPs).#N#An Intensive Outpatient Program (IOP) facility is different.

Step 2: Getting Your Drug Rehab Center Licensed

Regardless of the type of rehab center you want to open, you must receive a license.

Step 3: Hiring and Training Your Staff

Once you’ve applied and been approved for your business licenses, you’ll need to hire and train employees.

Step 4: Applying for Insurance Accreditation

Insurance accreditations mean your facility can accept insurance payments from patients. If you plan to run a rehab center for out-of-pocket patients only, you can skip this step. But if you plan to serve low-income or elderly populations, this is a must.

Open a Drug Rehab Facility Today!

As long as you follow these 4 steps, you’ll be on your way to opening the drug rehab center you’ve always wanted to. And the people in your area will thank you.

Why do you have to start a rehab center?

Before starting a rehab center business, you have to be sure that it is a business you are ready for, because apart from making profit like any other business, the primary cause of the business aims at achieving a noble cause of ensuring people become free of their addictions whatever they may be.

What are the challenges of rehab?

Some of the threats and challenges you are likely to face in your rehab center business include a drop in funding from the federal government which might be due to a downturn in the economy; more strict regulations from operating state, or more competitors in the same niche.

Why is financing important for rehab?

Financing your rehab center business is very important because no business or business idea can thrive without finances, no matter how noble or fantastic the business is. Finance helps the business not only become a reality but also to thrive and grow.

What is the most important decision for a start up business?

One of the most important decisions any entrepreneur has to make for their start-up business is choosing the legal structure that will suit the business and its specific needs. The legal entity decision is a profound one that will have an impact on how much tax is being paid, your personal liability, the amount of paperwork you would be required to carry out as well as your ability to source for start-up capital, which is why it is necessary for you to meet with an attorney who would best guide you on what legal entity would suit your business.

Do rehab centers need insurance?

Insurance is a necessary decision for any entrepreneur that intends to go into business in the United States of America. If you are intending to start your own rehab center business, you would need to find out what insurance coverage your business is expected to have.

Why is customer retention important?

Customer retention is very important in a business as it is a way of businesses knowing that their customers are loyal and responding to the different retention strategies. Customers only move to other companies when they aren’t satisfied with the services offered by the present company they are patronizing.

Do rehab centers need intellectual property?

Most of the services carried out by rehab centers are not considered something worth protecting intellectually, therefore most rehab center owners do not consider applying for an intellectual property a priority. You might however choose to secure an intellectual property for your logo, if you feel it is absolutely necessary.

What is the best way to advertise a rehab center?

Social Media Marketing. Social Media is a great community building and branding tool to use when you start a rehab center. Facebook marketing also provides a great advertising platform in which you can leverage the content you create and put it in front of a large audience.

What is the first step in opening a medical facility?

Obtaining a license is the first and crucial step to opening your facility. You must remember that your patients will be attending your facility to receive help for dire mental health and medical conditions – whatever they may be. Therefore, like any medical facility, you must acquire a license to conduct business.

Why is marketing important in rehab?

Without the ability to bring in new clients, your treatment center as well as your investment, will be a failure. It is highly important that all of your marketing efforts need to be legal, ethical and effective.

How many people are addicted to alcohol?

Industry Overview. According to the National Council on Alcoholism and Drug Dependency in the United States, over 23 million Americans from the age of 12 and above are addicted to alcohol and other drugs.

Who is Tim Stoddart?

Tim Stoddart is the CEO of Stodzy Internet Marketing. He lives in Nashville with his wife and hit adorable pitbull, Alice. Tim loves to write about digital marketing and personal growth. You can learn more at TimStodz.com

What is CARF accreditation?

CARF is a non-profit accreditation body that evaluates substance abuse and dual-diagnosis programs. As the largest U.S. accrediting organization for addiction facilities, facilities that have met CARF-defined standards of care have attained the industry benchmark for quality programming.

How to create a financial plan?

The best way to devise a financial plan is to create an Excel document. List each expense you will have. Create a realistic revenue forecast. How many clients can you admit per month? What is the projected earning from each client? The more detail the better.

Owning a Rehab Business

Starting a rehab business is not as difficult as you may think it is. However, there are many things that you need to do in order to be successful in this type of business. This is because that you will be dealing with special people who need personal attention.

Additional Tips to Launch this Business

Determine the types, philosophies, sizes, as well as approaches used by other drug rehabilitation centers in your area to know whether your area can still accommodate another facility. Contact your state as well as local authorities to ensure which permits and licenses are necessary for you to open your business.

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235 Comments

Hi seeking information on day treatment centers in Virginia. Brother in law has some capital that he would be willing to invest for the right opportunity. I am a registered ED nurse/nurse manager who has some contacts in the Behavioral health area. Please feel free to contact me by phone at 540 729-5251

Know the Law

Federal laws including the Americans with Disabilities and Rehabilitations Acts govern all health service providers in the United States. However, many of the laws regulating rehab centers vary depending on where you intend to open.

Licenses & Certifications

While specific staffing and educational requirements also vary, every state mandates that a drug rehabilitation center have a variety of therapists, psychiatrists, nurses and other professionals on staff in order to open.

Reach Out

The unique operating environment of a drug rehabilitation center makes it crucial to have comprehensive policies and procedures in place prior to opening. Seek the advice of rehab professionals to help ensure you have addressed issues like visits & smoking that are particular center operations.

Final Preparation

Complete your business plan, secure a location for the drug rehabilitation center and obtain all the required licenses. Pay careful attention to your marketing plan; remember potential clients are experiencing very difficult circumstances; it is important that your advertising convey safety and caring.

What is rehabilition recovery?

The rehabilition/recovery industry is similar to other industries in staffing needs. Without a proper staff, a business can fall through. Below is a small, basic set of staff you need to acquire and train.

What is recovery center?

A recovery center is a medical institution, and requires legal licensure, along with plenty of regulation and paperwork. The second issue is keeping the center profitable and open. We have seen many individuals starting up their own centers, without our consultations, forget to solidify a marketing plan. Unlike restaurants, people will not just ...

Why is feasibility study important?

The feasibility study helps decipher the local areas needs, and what centers would thrive. For instance, opening the latter choices in Florida would be inadvisable because there are already so many identical centers there that the competition would be daunting. However, this type of center has higher demand in Ohio.

What is insurance accreditation?

Often they are not recommended, but required to enter into the treatment industry. The accreditations mean if you commit a patient to your facility and are not accredited, they will not pay out for the services your provided.

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How Much Does It Cost?

  • Opening a treatment center can be costly. Your largest investment will be into the property and the people running the center. The issue with answering this question is that each center is vastly different. What type of center are you opening, modalities, level of care, city and state, etc. A large part of our feasibility study is the pro-forma, which outlines the costs associated with a center. I…
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Feasibility Study

  • First step is a feasibility study. This will help you determine exactly what is needed in your local area (or the area in which you wish to open a center). In this phase you will need to determine the type of rehab center you want to open. By type, we are referring to the level of your treatment center will provide. For example, will it be a full continuum of care center? Which we highly sugg…
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Licensing

  • As opening a rehab center is like opening a private practice in medicine, you need to be a licensedto conduct business in the addiction field. This is done through the local authorities. This involves zoning as well. If you are looking to open a residential recovery center the home or living location of your residence could require commercial medical zoning. Each state is different, like …
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Business Plan

  • Like any business, you need to create a professional addiction center business plan and pro-forma. The business plan puts your thoughts to paper and creates what the business will become. This is required by all banks and most serious investors. To learn more about how we can help with your business plan writing, click here
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Staff and Training

  • The recovery industry is not much different than most. Your staff will create an amazing experience for your patients. You need to hire the following staff to open a center: 1. Executive Staff 1.1. Medical Director 1.2. Executive Director 2. Intake Staff (handling inbound leads for treatment) 3. Medical Staff 4. Clerical Staff 5. Janitorial Workers 6. Case Workers 7. Managers 8…
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Accreditations CARF and Joint Commission

  • Accreditation from CARF or The Joint Commission (JCAHO)is highly valuable these days. More and more insurance companies are requiring one of these two accreditations in-order to enter treatment which means if you allow a patient to enter your facility and are not accredited, they will not pay out for the services your provided.
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Marketing Execution

  • As we said before, marketing is where most people fall flat in the recovery business. They don’t provide enough budget to cover what is needed and end up running out of money or have empty beds when they open. Marketing for addiction rehab centers is a two-pronged approach. The first prong being long term investment in Organic Search and your brand. Organic search (SEO) is Go…
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