how to start a residential treatment facility

How to Start Residential Care Homes

• Look at the Market. The difference between residential care homes and nursing homes or assisted living facilities is that residential care homes don't have the same level of on-site medical ...
• Residential Care Home Requirements. Residential care home requirements are imposed state by state, rather than nationally. ...
• Finding Staff. ...

Full Answer

How much does it cost to build a residential treatment center?

First Steps to Open a Residential Treatment Facility Savvy business owners start with a feasibility study to gain a better understanding of what type of center will thrive in a specific location. Since your state and the federal government look at treatment centers as medical facilities, they will require licensing.

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?

Apr 04, 2022 · Allow them to open up and feel what they’re feeling right now. There may be a scream for help between the tears and their responses. Form a conversation about what they truly desire for themselves, and discuss the possibility of going to residential treatment. Also, check-in on how they are feeling now and allow them to consider whether this ...

First Steps to Open a Residential Treatment Facility

Savvy business owners start with a feasibility study to gain a better understanding of what type of center will thrive in a specific location.

How to Ensure Profitability

While it’s easy to get wrapped up in a passion for helping others, it’s critical to look at your treatment facility as a business. If you don’t, you may never even open the doors to your first client.

Staffing Your Private Rehab Center

Once you obtain your license and secure a location, it’s time to hire staff. Even in the smallest treatment center, you’ll need a well-oiled team to make your facility successful.

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We hope we’ve inspired you to follow your dreams of helping people who struggle with addiction. Opening a residential treatment facility takes considerable time and money, but the impact you’ll have on other’s lives makes it all worth the effort.

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.

What is CARF accreditation?

CARF is a non-profit accreditation body that evaluates substance abuse and dual-diagnosis programs. As the largest U.S. accrediting organization for addiction facilities, facilities that have met CARF-defined standards of care have attained the industry benchmark for quality programming.

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.

What is the Joint Commission?

Formerly known as JCAHO, the Joint Commission is also the second largest accrediting organization for addiction rehabilitation programs in the U.S. Numerous type of healthcare providers can earn accreditation from the Joint Commission, which has accredited more than 20,000 healthcare programs and providers.

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 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.

How long does it take for organic search to show up?

Organic search ( SEO) is Google, Yahoo, and Bing. The value in organic search is incredible once the results are seen, which can take 4-6 months. Obviously in-order to show up in the search engines, you also need a website. Hire a quality addiction marketing company (like us) to produce a professional website .

How long does it take to get organic results?

As organic results take 4-6 months (which aligns well with how long it can take to get licensure and everything set-up) you can open your doors with clients ready to enter. Rather than starting your online marketing when you get licensure and have 2-3 months of little organic result.

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 recovery industry different from most?

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:

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.

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 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.

Why is feasibility study important?

The feasibility study helps decipher the local areas needs, and what centers would thrive. For instance, opening the latter choices in Florida would be inadvisable because there are already so many identical centers there that the competition would be daunting. However, this type of center has higher demand in Ohio.

What is insurance accreditation?

Often they are not recommended, but required to enter into the treatment industry. The accreditations mean if you commit a patient to your facility and are not accredited, they will not pay out for the services your provided.

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 ...

How long does it take to get results from organic search?

The results are usually take several months (less than half a year), but when visible, are phenomenal.

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.

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.

Why are accreditations important?

Some insurance companies require these accreditations in order to pay out for treatment. It also shows a commitment of the treatment center at a certain standard and quality.

What is MAT marketing?

Medication assisted treatment (MAT) Don’t forget to budget for marketing. A quality program will not be successful if no one knows about it. Marketing is sometimes considered an after-thought, but it is important to start the process early. Finding a marketing company that understands your business plan is crucial.

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.

Why do ALW facilities need to have nurses?

ALW facilities are required to have licensed nursing staff, either on call or employed, in order to provide skilled nursing services as needed to waiver participants. Facilities shall employ staff as necessary to ensure provision of care and supervision to meet client health and safety needs.

What is RCFE in nursing?

Residential Care Facilities for the Elderly (RCFE) and Adult Residential Care Facilities (ARF) are responsible for providing Assisted Living Waiver (ALW) services to participants, allowing them to maintain independence and continue to receive nursing level of care as needed. The RCFE/ARF work in conjunction with the Care Coordinator Agencies (CCA) to ensure participants receive individualized care in a homelike and community setting.

Is an ALW considered a healthcare facility?

Participating ALW facilities are not regarded as healthcare facilities, but social-based facilities. Although the RCFE/ARF is a licensed facility, ALW residents are considered as living in their own home, not in a healthcare setting.

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 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.

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?

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 c...

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Licensing

Business Plan

Staff and Training

Accreditations CARF and Joint Commission

Marketing Execution