Opening a drug or alcohol rehab center is similar to opening a private medical practice, which means you must obtain a license prior to conducting business. You can acquire a license through your state’s Department of Mental Health and Addiction Services Committee. That said, every state is different.
Full Answer
How to open a drug rehab center?
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.
How much does it cost to open a drug treatment center?
On average, the cost of opening a treatment center is $100,000-$2M depending upon level of care, city and state, payer targets, modalities, and much more. First step is a feasibility study .
How do I start an addiction treatment center?
Setting up a website, search engine optimization, brochures, business cards and conferences are just a few of the ways to build the name of your treatment center. The process can seem overwhelming. There are many financial factors to consider when initially budgeting to open an addiction treatment center.
How to open a mental health treatment 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 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.
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 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.
How many employees do you need to run a rehab center?
This would be about 10 to 20 employees.
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.
When will rehab centers be fully recovered?
Even though a downturn in the economy plus a drop from federal funding such as Medicare and Medicaid affected the revenue and invariably wages for those in this industry, the rehab center industry is slowly on its path to total recovery and is therefore projected to be fully recovered before 2021.
How to open a drug rehab facility?
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. Be sure that your area is zoned for this kind of treatment facility. Get permission to refurbish or build your site and appear at hearings if required.
How to get funding for a medical facility?
Prepare a good business plan and a well-designed project to approach local government and the federal state for funding. Secure, fill up, and submit grant applications with all the backup documents needed to obtain funding from the government. Keep in mind that different grantors may provide you with funds for a certain type of expenditure like for construction or for purchases only. Find in-kind donations too such as equipment and furniture from furniture companies or medical companies to decrease the items that you may need to buy to furnish and equip your facility.
Why do you need a lot of experience in detoxification?
This is because that you will be dealing with special people who need personal attention. You will need a lot of experience in detoxification as well as in the addiction sections to be able to succeed.
Step One – Do Your Due Diligence
The first step in opening any business, let alone one as complex as a drug rehab center, is spending some time to perform research and do your due diligence. In this initial phase, you need to verify the feasibility of opening a rehab center and decide on its location.
Step Two – Find a Location
The location of your drug addiction center will primarily depend on whether or not it is a residential care facility. However, there are several other things to consider, such as:
Step Three – Get Licensed
Opening a drug or alcohol rehab center is similar to opening a private medical practice, which means you must obtain a license prior to conducting business. You can acquire a license through your state’s Department of Mental Health and Addiction Services Committee.
Step Four – Develop a Business Plan
Next, it’s time to develop a business plan. A professional business plan puts your thoughts on paper. It is the product of extensive research, outlines what your business will become, and is required by every bank or investor prior to approving funding.
Step Five – Get Accredited
Licensing is a must when opening a drug or alcohol rehab center. However, if you are accredited, your clients can have their healthcare costs covered by insurance providers.
Step Six – Find and Train Your Staff
Like many industries, the recovery industry relies upon dedicated and passionate staff to create amazing patient experiences. Your team should be the same and represent the values and vision of your business.
Final Step – Marketing Your Rehab Facility
Marketing is the final and arguably the most crucial step in opening a drug rehab center. Unfortunately, many people fail in their marketing efforts or experience poor results, causing a number of facilities to fail before they even get started.
How much does it cost to open an addiction treatment center?
An intensive outpatient program can range from $300-$600k, a residential treatment center can be a few million, and a sober living home can range from $200-700k.
What is ascending recovery services?
Ascension Recovery Services is a team of experts and specialists with years of experience working to support individuals struggling with addiction and their families.
Is Ascension Recovery Services a profitable business?
The need for quality addiction treatment continues to rise and starting your own treatment center can be a great way to have a profitable business that makes a difference. However, if you have decided to open your own treatment program, there are many factors to consider.
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 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.
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.
What is the demand for treatment facilities?
The demand for treatment facilities is largely driven by the availability of various factors such as new drugs and treatments, funding policies as well as insurance programs. Profitability for individual facilities depends on controlling costs as well as referrals.
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.
Is it okay to make mistakes in drug rehab?
One mistake could potentially have dire consequences for your clients and their families. Now, mistakes are okay and it is only natural that you will stumble a bit on your journey of opening a drug rehab, but there is too much on the line so think long and hard before you decide to commit and make an investment on opening your own facility.
How to market a drug treatment center?
Marketing a drug and alcohol treatment center is a delicate task. It's helpful to network with medical, legal, and criminal justice professionals who can refer patients to your center. But ultimately, your marketing content will need to be directed toward patients and their families. Keeping in mind that your "customers" are in a very vulnerable place, your marketing should carefully describe your facility, staff, and services without guaranteeing outcomes.
What is an alcohol treatment center?
Alcohol and drug abuse treatment centers are a two-edged sword for entrepreneurs. Substance abuse treatment facilities allow business owners to engage in a noble cause and turn a profit at the same time. But the stakes in a drug and alcohol treatment center are also much higher than they are in a typical business startup - a single mistake can have dramatic consequences for your clients and their families.
Do treatment centers have to be residential?
Location is another issue to consider during the planning stage. There are no mandates that your treatment center must be residential. However, most treatment centers yield the highest success rates when they require patients to live on-site for a predetermined period of time. Either way, your location will need to pass health and fire code inspections before you open the doors to patients.
Is treatment center profit based?
If your motivation for launching an information and treatment center is purely profit-based, then the treatment and recovery industry isn't right for you and you should look for a different industry for a business startup. Effective treatment centers are profitable, but profit should never be the primary factor in decision-making and strategic planning.
Is opening an alcohol and drug treatment center a good idea?
Opening an alcohol and drug abuse treatment center is a rewarding experience if you have the creativity and tenacity necessary to be a successful entrepreneur. This article contains a friendly, comprehensive guide on the essential elements for business success.
What is a drug rehab center?
A drug rehab center is a rehabilitation/correction center for drug addicts. This business can be described to be in two-folds, that is engaging in a noble cause (social enterprise) while also bringing profit for the entrepreneur. The drug rehab center business is a delicate business, you need to network with legal, medical, ...
What is drug rehab?
The Drug and Alcohol Rehabilitation Clinics industry is made up of clinics and facilities with medical staff that primarily provide inpatient and outpatient services related to diagnosing and treating alcohol, drug and other substance abuse. For-profit and nonprofit establishments are also part of this industry.
How much does it cost to live in a drug rehab?
Drug and alcohol rehab center residents must pay rent each month. The rent usually amounts to between $450 and $750 per month, depending on where the home is located.
Why are rehab centers so popular?
The demand for rehab centers is largely driven by the availability of various factors such as new drugs and treatments, funding policies as well as insurance programs. Profitability for individual facilities depends on controlling costs as well as referrals.
Why did rehabilitation centers lose money in 2012?
A notable trend shows that the revenue and wages for rehabilitation centers have largely been affected due to the recession and also a slight fund drop in 2012 from federal funding of Medicaid and Medicare as a result of a rise in premiums, but the effect is wearing off as the industry has largely recovered.
What is the increase in substance use disorder in 2019?
Increased instances of substance use disorder over the five years to 2019, including an epidemic of opioid addiction, has raised demand for industry services. Meanwhile, access to rehabilitation programs has expanded with increased enrollment in health insurance.
Why do you need money for a residential facility?
You would need money to secure a standard residential facility big enough to accommodate the number of people you plan accommodating per time, you need money to acquire supplies and you would need money to pay your workforce and pay bills until the revenue you generate from the business becomes enough to pay them.
Intensive outpatient programs (IOP) have emerged as a critical part of the treatment of substance use disorders and relapse prevention. With the increase in the amount of addiction-related deaths, there is a real need for more high-quality programs. But is now the right time for you to launch your own IOP? Let Ascension help you make that decision and guide you through the process
Ascension provides start-up consulting services for individuals, business partnerships, hospitals and institutions interested in developing i ntensive outpatient programs. Our proven track record supporting program development efforts focuses on two main goals:
Ongoing Support
Ascension usually stays on and consults to the owner for the initial period of operation and is then remains available as-needed.
Value of a Partnership
Developing an intensive outpatient program can provide many challenges. It can take months of planning to execute effectively, and mistakes or missteps can be costly. These mistakes can end up costing tens of thousands of dollars in lost revenue, and can even delay the launch of your program.
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 ce…
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 …
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
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.
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…