
- Developed a comprehensive business plan that sets the entity up for success
- Developed a world-class clinical program
- Established a licensed and credentialed facility that reflects the mission of the program
- Contracts established with all desired payers / insurers
- Created a robust website and marketing strategy
- Hired an experienced and well-trained team
Full Answer
What do you need to start a drug 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.
What is the first phase of the residential treatment program process?
The process can seem overwhelming. There are many financial factors to consider when initially budgeting 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.
How do I start an addiction treatment center?
Hire Employees for your Technical and Manpower Needs. Some of the equipment and tools needed to start a rehab center business are those that can be gotten for fairly used such as chairs, beds, computers and such other equipment, and if this equipment are well managed, it could last you for a very long time.
How do I obtain licensure for my treatment center?
Mar 09, 2018 · Make a detailed proposal of what you want to accomplish in treatment. List specific skills you want to learn and develop, subjects you want to explore in therapy, and behaviors you wish to quit or modify. 10. Make a contact list Most residential treatment centers have programs that last from 30 to 90 days or more.

What is another name for a residential treatment program?
A residential treatment center (RTC), sometimes called a rehab, is a live-in health care facility providing therapy for substance use disorders, mental illness, or other behavioral problems.
What is a Dhcs license?
Facility Licensing Back to Licensing and Certification 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.Jan 28, 2022
Who regulates rehabilitation facilities in California?
the Department of Health Care ServicesCalifornia's drug rehabilitation centers are regulated by the Department of Health Care Services, or DHCS. DHCS is an institution deeply embedded in health care for all Californians.Dec 13, 2020
Do sober living homes need to be licensed in California?
It is important to note that while sober living environments or alcohol and drug free housing are not required to be licensed by DHCS, they may be subject to other types of permits, clearances, business taxes or local fees which may be required by the cities or counties in which they are located.Dec 9, 2021
How do I report a rehabilitation center?
If you have a concern regarding the quality of care, facility conditions, or unprofessional conduct, you can always file a complaint against the concerned state agency. All you need to do is call the hotline, fill up a form, or send a personal complaint letter.
Who is responsible for the oversight of the health care facilities?
California state government is responsible for the regulation and oversight of health care facilities through multiple agencies, departments, boards, bureaus, and commissions.May 30, 2014
Who is in charge of healthcare in California?
On September 25, 2019, Governor Gavin Newsom appointed Richard Figueroa, Jr. as Acting Director. Will Lightbourne was appointed by Governor Gavin Newsom and began serving as Director on June 16, 2020....California Department of Health Care Services.Agency overviewParent agencyCalifornia Health and Human Services AgencyWebsitewww.dhcs.ca.gov4 more rows
Is sober living a good idea?
Retention of residents in the sober living houses was excellent. Average lengths of stay in both types of sober living houses surpassed the National Institute on Drug Abuse recommendation of at least 90 days to obtain maximum benefit.
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.
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.
Who oversees the entire clinical staff?
However, no matter what, this requires a few particular and vital staff members. Clinical Director – The Clinical Director oversees the entire clinical staff. This could include your licensed therapists, and any employee that plays a role in treatment of the mental health of your clients.
What is the business plan for addiction?
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.
Is opening a treatment center expensive?
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.
Do you need a license to open a recovery center?
Each state is different, like California. If you have 6 beds or fewer in the state of California, you are not required to be zoned commercial, however, you still need a license.
Is it advisable to open an IOP in West Palm Beach?
For example, opening a residential and IOP center is West Palm Beach, FL would not be advisable as there are so many in that area already. It’s saturated. However, offering that in Ohio would be very beneficial.
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 ...
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.
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.
1. Know and Understand Local Regulations
The rehabilitation industry is heavily regulated. There are federal, state, and local laws you’ll need to comply with. Even if you have someone on staff who knows the regulations, as the owner of the facility, you will be responsible for any violations.
2. Feasibility Study & Business Plan
You may have a great idea and a vision, but without a feasibility study, you don’t know if it will work or not.
3. Financing Your Treatment Center
You have a few options to get the funds to start your business. One option is to take your business plan and send it out to investors.
4. Get Licenses and Accreditations
You’ll need to show potential clients you’re not a fly by night treatment center. Obtain the proper licenses and becoming accredited by nationally recognized organizations.
5. Hire Top Staff
Your staff will be the lifeblood of your treatment center. You’ll need to hire caseworkers, managing directors, intake staff, medical staff, maintenance staff, and administrators.
6. Create Standard Operating Procedures (SOPs)
As your facility’s staff grows, you’ll need to create more policies and procedures.
7. Market Your Treatment Center
In your feasibility study and your business plan, you may have discovered what people look for when searching for treatment facilities.
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.
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 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 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.
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 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 [email protected] for more information.
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 large part of our feasibility study is the pro-forma, which outlines the costs associated with a center. I…
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…
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...
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
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…
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…