How to Open a Rehab in Kentucky

A How to Guide to Opening a Drug Rehab Center in Kentucky

The great state of Kentucky is no stranger to high rates of alcoholism and addiction. Drinking and party culture is deeply entangled in the South. With that said, Kentucky took pandemic drinking and using to a whole new level.

According to the CDC, Kentucky’s overdose rate jumped over 50 percent between 2019-2020. These numbers continue to rise. Preventative programs including Naloxone training has been slow to take effect in Kentucky. There is much need for advocacy, support and education,

Even though Kentucky has allocated 4.6 million in grants for pregnant and parenting women with opioid use disorder the substantial need for quality treatment for everyone in Kentucky is more evident than ever. That said, if you are interested in applying for the grant mentioned above, an in-patient residential facility is required. We will address Kentucky state licensing requirement for opening an addiction treatment facility.

How to License an Addiction Treatment Facility in Kentucky

Licensing requirement are fairly straightforward in Kentucky. According to Kentucky law 908 KAR 1:370:

(1) Unless exempt in accordance with subsection (2) of this section, any person, organization, corporation, community mental health center, or driving under the influence program planning to operate an outpatient or residential AODE shall submit the following to the cabinet: (a) A completed Application for License to Operate a Non Hospital-based Alcohol and Other Drug Treatment Entity (AODE) and any required documentation; (b) A licensure fee of $500; and (c) A fee of eighty (80) dollars per outpatient AODE extension site.

Before you apply for a License for a AODE in Kentucky, you must file a Certificate of Need. This must be approved by the Fire Marshall. There are many processes that come before the CON including but not limited to fundraising, branding, finding a location, zoning and permitting, creating a curriculum and hiring staff.

When submitting the application you will need to have the majority of this information sorted. You will need to know your ASAM levels of care and how you plan to implement your P&P or Policy and Procedures. You will also need to know what’s required when creating you P&P.

At Orion Treatment Consulting, we are a one stop shop. We can create a phase system for you based on our offered packages that will carry you through the entire process including licensure and accreditation.

While the state of Kentucky does not require additional accreditation, we highly recommend Joint Commission or CARF accreditation. These processes ensure high quality evidenced based care while ensuring insurance companies will negotiate contracts with you program,

How Much Does it Cost to Open a Rehab in Kentucky?

Albeit the licensing fee will only set you back $500 dollars, don’t let that fool you as to how much capital to raise. Opening an outpatient center can set you back between $200-$500 thousand dollars depending on size, location and robustness of care.

Why Hire a Drug Rehab Consultant?

At Onion Treatment Consulting, we are committed to creating more opportunities for quality treatment in the world. Addiction is a treatable disease when given proper care. Additionally, we  successfully opened many facilities and have made many of the mistakes in the process. We have developed workflows and strategies to avoid these pitfalls.

We understand going it alone is a daunting process. You don’t know what you don’t know. Having a guide is worth the effort in the long run. Reach out today!