How to Open a Rehab in North Carolina
A How to Guide to Opening, Licensing and Operating a Drug Rehab in North Carolina
Understanding how to open a drug rehab in North Carolina is of paramount importance due to the concerning overdose death rate in the state. In 2021, North Carolina recorded an overdose death rate of 39 per 100,000 people, translating to a devastating total of 4,041 individuals who lost their lives to overdoses in that year.
Tragically this statistic reflects a critical public health crisis, with families and communities affected by the tragic consequences of substance abuse.
These facilities play a pivotal role in offering recovery and healing options to individuals in the state, helping them regain control of their lives and contributing to a healthier and safer North Carolina.
Furthermore we hope to change the stigma around addiction as it is a treatable disease. Current programs use work based programs instead of billing insurance. Unfortunately instead of providing evidenced based treatment, these programs are walking a fine line of taking advantage of a vulnerable population.
How to License a Drug Rehab in North Carolina
Opening an addiction treatment center in North Carolina presents both challenges and significant opportunities. The state’s Certificate of Need (CON) laws, which restrict the number of providers permitted to open, can pose initial barriers.
If you plan to open a residential treatment facility in North Carolina, it’s essential to be aware that you’ll need to obtain a Certificate of Need (CON) before applying for your DHSR (Division of Health Service Regulation) mental health license.
North Carolina is one of 35 states in the United States that administers a CON program. This “CON law” was enacted by the state government to curtail the proliferation of potentially redundant and fraudulent service providers within the state.
However, it’s crucial to recognize that North Carolina, particularly in rural areas, has a substantial need for addiction treatment providers. The scarcity of these services in rural regions underscores the critical role your facility could play in addressing this demand and improving access to addiction treatment in underserved areas.
In North Carolina, the regulation of addiction treatment centers falls under the oversight of the Mental Health Licensure and Certification Section (MHLCS), a part of the North Carolina Division of Health Service Regulation (NCDHHS). Most providers will need a license.
Substance Abuse Programs Whom are Exempt from Licensure in North Carolina
There are exceptions to this licensing requirement. You may not need a license if your facility:
- Operates as a private office practice involving physicians and psychologists.
- Provides care to fewer than three individuals at a time.
- Functions as a nonprofit organization following a 12-step, self-help, peer role modeling, and self-governing approach.
- Offers services exclusively to inmates.
- Receives no federal or state funding and qualifies as an exempt religious organization.
- Serves as a permanent group home.
Finally, North Carolina also offers a New Provider Orientation for individuals interested in opening addiction treatment centers in the state. This orientation can provide valuable guidance and information for those seeking to navigate the complexities of licensing and regulation within North Carolina’s addiction treatment landscape.
Grant Funding and Medicaid Reimbursement in North Carolina
Additionally, if you’re considering participating in Medicaid or state/county-funded addiction treatment programs in North Carolina, it’s crucial to establish contact with your Local Management Entity/Managed Care Organization (LME/MCO) early in the process. Before applying for certification, reach out to your LME/MCO to verify the need for addiction treatment services in your target area and to ensure they will consider your application.
After you have successfully obtained certification from the state, you can proceed to apply for a license for your program through your respective LME/MCO. The specific LME/MCO you should contact depends on your location within North Carolina. You can identify your designated LME/MCO using a convenient map-based directory, which will guide you to the appropriate local authority to facilitate the licensing process for your addiction treatment program. This step ensures that you align your services with the needs and resources within your area while complying with state and local regulations.
Why Hire an Addiction Treatment Consultant?
At Orion Treatment Consulting we have decades of experience owning and operating treatment center around the US. We understand the common pitfalls and wish to help new companies find solid footing in a slippery industry. The licensure process is arduous and time consuming. Let us guide the way, reach out to a consultant today.