RehabFAQs

what type of licensing do you need to.start a rehab center

by Madelynn Rau Published 2 years ago Updated 1 year ago

Licensing. As opening a rehab center is like opening a private practice in medicine, you need to be a licensed to conduct business in the addiction field. This is done through the local authorities. This involves zoning as well.

What to ask facility representatives?

It’s best, however, to ask facility representatives to provide information on how their facilities comply with local laws, and it might be useful to compare the answers given by one representative to the answers given by an opposing facility’s representative.

Do family members have to be experts in addiction?

No one would expect family members to become experts on addiction care and the law. In fact, it’s likely that families like this have many other important things to attend to, so they may not have the time to delve into the specifics of the laws in their states, and the laws that govern faraway facilities they might also be considering. It’s best, however, to ask facility representatives to provide information on how their facilities comply with local laws, and it might be useful to compare the answers given by one representative to the answers given by an opposing facility’s representative. Careful comparisons like this can help families to make good choices.

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

There are a few different types of rehab centers out there. 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). 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.

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.

How to maintain a facility?

To maintain your facility, you need an income, like a business. It is important to have a solid business plan and pro-forma. This will assist estimating and maintaining income, calculating expenditures/revenue, and your marketing budget. Marketing is the most crucial part of your business plan and pro-forma. These plans will also help ground how much investment is needed to launch your facility.

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 ...

Do rehab centers need a license?

Rehab centers are comparable to private practices of medicine, so you are required to be licensed to operate a business in the addiction field. Contact your local authorities for procedures you have to take. You must also follow zoning laws.

What to consider when starting a rehab center?

Another factor to consider when starting your rehab center business is the location where the rehab will be located in. even though it isn’t compulsory that your rehab center be residential; however most of the successful rehab centers are those where patients can stay for a predetermined time and then leave.

How many employees do you need to run a rehab center?

This would be about 10 to 20 employees.

What is a business plan for rehab?

A business plan is the document that will show any financial institution how serious you intend taking your rehab center business.

What are the specializations of rehab?

Regarding the areas of specializations in the rehab business industry, some of the specializations are; alcohol and drug addiction. internet addiction. sex addiction.

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 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.

What is the difference between a large scale rehab and a small scale rehab?

Large scale rehabs tend to have a higher advantage to purchasing as well as marketing sources that would provide referrals. Small scale facilities have more leverage in competition by providing superior service, integration of treatments, and specialized treatments. Think about what your approach should be.

How many people received treatment for addiction in 2012?

Research from the Substance Abuse and Mental Health Services Administration (SAMHSA), states that 2.5 million Americans received care at an addiction treatment facility in 2012. The market for addiction treatment according to SAMSHA is estimated to be about $35 billion per year with more than 14,000 treatment facilities in existence.

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.

Do you need a certificate of need to open a rehab center?

If you are planning on opening a residential facility, your residences must be commercially zoned. Some states require a “Certificate of Need” (CON) to start a rehab center.

What are the requirements for a DPH?

DPH regulations require each facility to, among other things: 1. have a governing board, an executive director, and fiscal manager and specify their responsibilities; 2. adopt written personnel policies and procedures covering work rules, discipline, evaluation, and medical exams; .

What is a CON in rehab?

The CON is a two-step process that determines if the facility or service is needed.

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 a DHCS license?

The Department of Health Care Services (DHCS) has sole authority to license facilities providing residential nonmedical services to eligible adults who are recovering from problems related to alcohol or other drug (AOD) misuse or abuse. Licensure is required when one or more of the following services is provided: detoxification, individual sessions, group sessions, educational sessions, or alcoholism or drug abuse recovery or treatment planning, incidental medical services. Additionally, facilities may be subject to other types of permits, clearances, business taxes or local fees that may be required by the cities or counties in which the facilities are located. You may also want to check with your county alcohol and drug program office to ensure compliance with any requirements they might have.

How to contact DHCS level of care?

More information on DHCS Level of Care Designation is available on this website. Please contact the Licensing and Certification Division by calling (916) 322-2911 or by e-mail at LCDQuestions@dhcs.ca.gov for more information.

What is a DHCs certification?

Certification by DHCS identifies those facilities that exceed minimum levels of service quality and are in substantial compliance with State program standards, specifically the Alcohol and/or Other Drug Certification Standards.

Do I need a residential AOD license?

Residential facilities licensed by other State departments such as the Department of Social Services (DSS) or the Department of Public Health (DPH) do not require a residential AOD license by DHCS.

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 lar…
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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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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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