Regardless of the type of rehab center you want to open, you must receive a license. To get started, contact your local licensing authority. They’ll detail the steps you need to take and hoops you’ll have to jump through to qualify for licensure. Keep in mind that you’ll also have to adhere to zoning laws.
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 .
What do you need to start a drug treatment center?
Your treatment center needs to be legally sound. It is, after all, a business that requires the proper licenses to run. A center will need to obtain a behavioral health license that will include a fee and potential application costs.
Is starting your own addiction treatment center profitable?
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 does accreditation mean for rehab?
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.
Do rehab centers have to be in a commercial zone?
For these residential programs, your facility must exist within a commercial zone.
Do you need a license to open a rehab center?
Regardless of the type of rehab center you want to open, you must receive a license.
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.
How many people are addicted to alcohol?
According to the National Council on Alcoholism and Drug Dependency in the united states, over 23 million Americans which is from the age of 12 and above are addicted to alcohol and other drugs. Research from the Substance Abuse and Mental Health Services Administration (SAMHSA), has it that 2.5 million Americans received care at an addiction treatment facility as at 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.
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.
What laws govern rehab centers?
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. For example, state law in Pennsylvania dictates that centers administering methadone cannot be located within 500 feet of schools and other public buildings, while Rhode Island’s statutes do not restrict location. Research thoroughly and don’t overlook the municipal codes; while your state may not govern where you open a drug rehabilitation center, your city’s zoning board likely does.
Is a drug rehab center profitable?
A drug rehabilitation center is like every business in that it must be well planned, financed, staffed and marketed, and like every business, it must be profitable to keep the doors open.
Do drug rehab centers need therapists?
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. Consider assembling the people that will hold legally required policymaking positions in the center as early as possible in the planning phase; their input will help ensure both compliance within their areas of expertise and broad perspectives on high quality client care.
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.
How to Start a Addiction Treatment Center in Arizona the Easy Way
Arizona is a gorgeous state with great weather - and a state that has a big opioid problem, making it a great candidate for your next addiction treatment center location. A recent study found that Arizona had over 66,500 overdoses between 2017 and 2021. Nearly 10% of Arizona residents admitted to using illegal drugs of abuse in the last month.
Arizona Does Not Require That You Get Your Addiction Treatment Center Accredited Before You Create Your Initial Application With the State
The Initial Licensing Application for Health Care Institutions in Arizona specifically asks if your facility is accredited.
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…