Substance Abuse Disorder Licensing

Substance Abuse Disorder Licensing

Rehab Licensing Specialists!

Licensing a Substance Abuse Residential Treatment Program is a challenging and lengthy process, but Circa Behavioral Healthcare licensing experts have years of experience and know all of the right steps and contacts. Our team can streamline the process and help you reach your company goals more quickly. Here is an overview of many of the steps that are taken during the licensing process, here is our checklist:

SUD Rehab Pre-licensing considerations

  • Form a company in California or in another state, but register it as a foreign entity allowing it to operate in California
  • Pro-forma budget
    • Plan conservatively and be properly funded to know when you plan to break even
    • Have a plan for marketing the program
      • Existing network
      • Referral relationships
      • Digital marketing
    • Rent and payroll largest expenses
      • If billing private insurance, revenue cycle will not finish with money in the bank until 60 days after billing
    • Control of a property
      • Lease vs. Own
        • If a lease, assuring term is long enough to display consistency
        • Have a good, transparent, relationship with landowner
      • Check local zoning and ability to obtain a business license
        • Stay away from properties with Homeowners Associations
      • Hire/contract with key staff
        • Have a medical director
        • Have an administrator/program director
      • Have a policy and procedure manual

During SUD Rehab licensing considerations

  • Prepare for fire clearance
  • Obtain furniture and supplies
  • Purchase a vehicle
  • Ensure life and environment of care safety through planning and risk management
  • Start hiring qualified staff
    • Set up an human resources system
      • Ensure all proper documentation
    • Choose and implement an EMR
      • Assure all state and accreditation compliance is met through the ERM
    • Apply for an NPI
    • Choose a billing company
    • Apply for accreditation
    • Obtain the right liability insurance
    • Have a plan for “not in my backyard (NIMBY)” neighbor/community attitudes, discrimination, and stigma
    • Post appropriate postings

Post SUD Rehab licensing considerations

  • Post state license and/or certification
  • Credential with the insurance carriers
  • Start training staff before treating first client and obtain appropriate competencies
  • Obtain accreditation as soon as possible
    • Post accreditation certificate
  • Follow pro-forma budget projections and adjust as necessary
  • Have good leadership

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