RehabFAQs

how to open a rehab center

by Adam Kuphal Published 2 years ago Updated 1 year ago
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How to Open a Rehab Center

  1. Secure a beneficial location for your center. A rehab center has some unique challenges that must be met. ...
  2. Form a board of directors. Whether you plan on operating the rehab center by yourself or you plan on hiring dozens of staff members, it is important to secure ...
  3. Register your business. Every business requires at least a general business license in order to operate. ...
  4. Certify your business. Rehab services may be covered by taxpayer money. This is especially true for mental health services, which are typically certified by a governing agency.
  5. Start bringing in your clients. Some rehab centers are a destination service, which means people may be ordered by the court to use you as a resource.
  6. Find your staff. If you’re planning on hiring people to provide services, then now is the time to do so. ...
  7. Throw a huge grand opening. Your grand opening is going to be one of your largest events. It’s also the perfect time to do some fundraising.

Full Answer

How you can start a rehabilitation center?

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 to start your own rehab center?

To open a residential recovery center, your facility/livnig location for inpatients must be placed in a commercial zone. The key to obtaining licensure lies in your program structure and Policy & Procedures Manual (P&P). Your treatment center and plan to service the community will be reviewed by the licensing board.

How do you open a recreation 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

How to start a residential treatment center?

How to Start a Residential Treatment Center. Residential treatment centers are a crucial part of the continuum of care in the cure of substance use disorders. With the increase in the amount of addiction-related deaths, there is a real need for more high quality residential treatment centers.

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What are the 5 stages of rehab?

Stages of RehabilitationPhase 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.

What is the goal of rehabilitation centers?

“The ultimate goal of a rehabilitation hospital is to help patients recover and be able to return to functioning as independently as possible in their homes.” The ultimate goal of a rehabilitation hospital is to help patients recover and be able to return to functioning as independently as possible in their homes.Oct 21, 2020

Does Demi Lovato own a rehab center?

Bestowing a happy holiday spirit, Demi Lovato shares her personal recovery story at Timberline Knolls. Demi expresses happiness over staying at Timberline Knolls Residential Treatment Center for five months.Dec 17, 2021

What do you call someone who works at a rehabilitation center?

Licensed clinical social workers. Counselors. Psychologists. Psychiatrists. Certified addiction specialists (CASs)

What are the 4 types of rehabilitation?

Rehabilitation ElementsPreventative Rehabilitation.Restorative Rehabilitation.Supportive Rehabilitation.Palliative Rehabilitation.

What are the disadvantages of rehabilitation?

Cons for Long-Distance RehabNeed for family alliance. Experts continue to recommend the benefit of whole family wellness for addiction treatment. ... Accessible support systems. ... Complications with employment leave. ... Insurance coverage.Jan 23, 2018

What are Demi Lovatos tattoos?

Demi Lovato has had at least 22 known tattoos:"You Make Me Beautiful" on her side (incorporated into a larger piece)feather behind her ear."Stay Strong" on her wrists.cross on the side of her hand.lips on her wrist (covered-up)feathers on her side (incorporated into a larger piece)"Peace" on her finger.More items...

Why is Demi in rehab?

Lovato sought treatment at the age of 18 after they got into a fight with one of their backup dancers when they were on tour with the Jonas Brothers. To help maintain their sobriety and cope with their struggles with an eating disorder and bipolar disorder, they entered a sober house in 2013.Jan 8, 2022

Where Does Demi Lovato go to rehab?

A source tells ET that late last year, the 29-year-old singer "completed a rehab stint in Utah recently and is now back in Los Angeles." "They wanted to get back on track and recently swore off being California Sober," said the source. "Demi's friends and family were there to support them during their time in rehab."Jan 10, 2022

What is the most difficult part of the rehabilitation process?

According to Hayward, the most difficult part of the rehab process was mental, not physical.Sep 16, 2018

How many professionals comprise the rehab team?

The rehabilitation team conventionally includes the physiatrist, rehabilitation nurse, physical and occupational therapist, speech pathologist, rehabilitation psychologist, and social worker or case manager, with availability of other services such as nutrition and respiratory therapy.

Who can form part of the rehabilitation team?

The rehab team may include these members:Patient and family. They are the most important members of the rehab team.Physiatrist. ... Rehab nurse. ... Clinical social worker. ... Physical therapist. ... Occupational therapist. ... Speech/language pathologist. ... Psychiatrist, psychologist, or neuropsychologist.More items...

Should You Focus on a Particular Type of Addiction?

When starting your rehab center, you might think it’s a good idea to help everyone that has some form of addiction. However, while this can sound like a great approach, it’s often not the best option for people opening their first rehab center.

Find a Good Location

The location of your clinic can have a big impact on how successful it’s going to be.

Think About the Finances of Your Operation

A rehab clinic is a business, and so you need to do the math to figure out what it’ll take for you to be profitable. After all, if you can’t make your clinic profitable, you’ll struggle to create a thriving clinic that helps people get past their addictions.

Ready to Start Your Own Rehab Center?

After reading through the tips in this post, you should be ready to start your own rehab center.

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.

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 ...

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.

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.

1. Secure a beneficial location for your center

A rehab center has some unique challenges that must be met. Safety will always be your #1 priority, so you’ll need a building that can keep you, your staff, and your clients as safe as possible. Some states have specific requirements that must be met of the facilities in order for a license to be issued so that you can operate.

2. Form a board of directors

Whether you plan on operating the rehab center by yourself or you plan on hiring dozens of staff members, it is important to secure the support of your community. Recruit people to serve on your board of directors so that you can benefit from their local experience and niche expertise.

3. Register your business

Every business requires at least a general business license in order to operate. You’ll need to have this license to apply for an EIN from the IRS so that you can hire employees if need be. Choose a business name and then register it with the Secretary of State or similar office.

4. Certify your business

Rehab services may be covered by taxpayer money. This is especially true for mental health services, which are typically certified by a governing agency. Physical rehabilitation may be covered Medicare or Medicaid, which may also require certification. Without this certification, you may not be able to conduct business.

5. Start bringing in your clients

Some rehab centers are a destination service, which means people may be ordered by the court to use you as a resource. Some centers, like a vocational rehab center, may need to recruit people in order to provide employment opportunities and supports.

6. Find your staff

If you’re planning on hiring people to provide services, then now is the time to do so. You may not need to hire additional therapists, but if you’re providing job placements, you may need to hire someone to go out into the community and secure jobs for your clients.

7. Throw a huge grand opening

Your grand opening is going to be one of your largest events. It’s also the perfect time to do some fundraising. Invite everyone from your local community to tour your facilities and talk with your staff. Don’t forget to include invitations to the local media.

How to fund a rehab project?

Financing the project is done by getting funds from many sources. These might include private partners, banks, personal funds, or grants. If seeking a grant to fund the rehab, you will need to complete some steps. These include the grant application, writing an essay, and the budget process.

What is the JCAHO process?

The physical plant must adhere to healthcare construction guidelines that focus on patient safety and quality of care. All supplies must be ordered and installed.

Is a rehab center the same as a private practice?

When starting a rehab center keep in mind it is the same as a private medical practice. Accreditation is the standard for the mental health field. In fact, being accredited is now needed for being insured. There are two main accreditation bodies for treatment centers. These are CARF and the Joint Commission (JCAHO).

Is it a noble goal to open a rehab?

The desire to open a rehab is a noble goal . No matter how much you want to help people, the truth remains that your program still must turn a profit. To run a successful rehab center it is a must that you take the right steps when forming it.

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 residential treatment?

Residential treatment centers are a crucial part of the continuum of care in the cure of substance use disorders. With the increase in the amount of addiction-related deaths, there is a real need for more high quality residential treatment centers. But is now the right time for you to open your own?

What is phase 2 of a start up?

During Phase Two, we begin by developing a budget based on the owners’ / entities’ desires and financial tolerability. Start-up capital is usually comprised of cash and financing activities, with a goal of recuperating capital contributions through operating activities in the first couple of years. We will also assist the owners with setting up the appropriate business structure and will further investigate the regulations and code specific to the state your facility will be operated in, which will translate through all phases of development.

How does Ascension help?

Ascension will assist you in researching applicable grants that can support the treatment center. We can also assist you with grant writing and execution of the grants if received. Ascension has assisted our partners in the search of grants, application process, narrative writing, budget creation and writing of the budget justification for various grants totaling millions of dollars for substance use disorder treatment, both state and federal, and participates in the execution of the grant, project management, final analysis and dissemination of final outcomes.

What is an ascension?

Ascension offers expertise and support to simplify and accelerate development of program materials, policy and procedure manuals and design of the patient’s daily schedule and curriculum. We have experience establishing Electronic Medical Records (EMR) systems and can help you with a recommendation based on the size and scope of the proposed residential treatment center. Ascension will assist in developing other program materials such as the mission statement, code of conduct, employee handbook and referral package for potential patients. Ascension offers material resources and best practices to guide in the development of policies and procedures manuals specific to licensure requirements of the state where the facility will be located.

What is the purpose of the Ascension?

Providing the highest quality of care#N#2. Creating a sustainable and financially viable business model#N#Ascension guides its clients and partners from the research and planning phase through opening the doors of your facility. With an accelerated development process, smooth opening and a solid operating model, we help you start making a significant positive impact on community health in your area.

What is Ascension's marketing?

Ascension’s industry leading marketing partners offer logo design and marketing of residential treatment facilities to assist with the branding and marketing of the new program. We work with the logo designer and marketing agency to develop a brand and image consistent with the goals developed in the previous phases. Marketing efforts are led by the agency and guided by Ascension. Ascension assists in the creation of a website and marketing materials by providing a draft of mutually agreeable content for the website and marketing materials.

What are the different types of therapy?

In order to best serve patients, a variety of programs will need to be put in place to create a comprehensive treatment environment and fulfill care at all stages of the continuum of care. Cost of technology, materials, and facilitators will need to be considered. Some programming types include: 1 12-step facilitation model 2 Group therapy 3 Cognitive behavioral therapy (CBT) 4 Rational emotive therapy (RET) 5 Dialectical behavioral therapy (DBT) 6 Systemic family counseling 7 Mindfulness therapy 8 Mindfulness-based stress reduction (MBSR) 9 Yoga and meditation 10 Humanistic and existential psychology 11 Motivational interviewing (MI) 12 Multicultural counseling and awareness 13 Social integration 14 Contingency management 15 Adaptive information processing (AIP) 16 Trauma-informed care 17 Medication assisted treatment (MAT)

Why are accreditations important?

Some insurance companies require these accreditations in order to pay out for treatment. It also shows a commitment of the treatment center at a certain standard and quality.

Is marketing an after thought?

Don’t forget to budget for marketing. A quality program will not be successful if no one knows about it. Marketing is sometimes considered an after-thought, but it is important to start the process early. Finding a marketing company that understands your business plan is crucial.

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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 medic...
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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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