There were 3,032 fatal drug overdoses in Tennessee in 2020, which represents nearly a 50% increase over the previous year. This steep increase puts Tennessee near the top of a list of states most impacted by overdose deaths in the last year. Health Department professionals point to synthetic opioids like fentanyl and support system disruption caused by the COVID-19 pandemic as the main culprits for this dramatic rise in fatalities.   

While public health officials are calling for more resources to be allocated for treatment services statewide, historically underserved populations, like people of color and pregnant people, still struggle to get the care they need in Tennessee. 

61 of the 95 counties in Tennessee have formed Prevention Alliance of Tennessee coalitions, which aim to prevent and reduce substance abuse among young people. There is funding available for the counties that have yet to join, which is a good sign that the state is beginning to invest in addiction treatment for it’s struggling population. 

Given that the need for treatment in Tennessee is so great, does that make the state a good place to open an addiction treatment center? The answer is - yes. The state’s licensing program is efficient and well-organized and the licensing fees are reasonable, especially when compared to the high fees in other states. Read on to learn more about how to open an addiction treatment center in Tennessee. 

Tennessee Requires All Addiction Treatment Providers to Obtain a State License Before Opening 

Department of Mental Health and Substance Abuse Services in Tennessee is home to the Office of Licensure, which administers the addiction treatment center licensing program in the state. According to their website all addiction treatment providers must be licensed by the state:

In Tennessee, agencies and providers offering treatment services must be licensed through the Department of Mental Health and Substance Abuse Services, Office of Licensure. There are distinct and separate rules for Non Residential Rehabilitation Treatment, Residential Rehabilitation Treatment, Halfway House Treatment, and Residential Detoxification.

In fact, in Tennessee, it is actually a Class B misdemeanor to operate an addiction treatment facility without a license. If you choose to go this ill-advised route, every day that you operate without a license will be treated as a separate offense! Definitely not worth it. 

Review the Rules for the Type of Addiction Treatment Center You’re Interested in Opening in Tennessee

Tennessee maintains separate rules documents for inpatient, outpatient, detox, opioid treatment, halfway house, DUI and children and youth program requirements. There’s overlap, of course, but each type of program has slightly different rules and requirements. Each of the rules documents contains information on: 

• Minimum program requirements 

• Policies and procedures 

• Personnel and staffing requirements 

• Assessment and treatment planning requirements 

• Medication administration requirements 

• Health and safety requirements 

• Patient and/or resident rights 

You can find the complete list of rules documents here. 

Check the Provider Database to Assess the Competition for Addiction Treatment Centers in Tennessee

Tennessee keeps a handy searchable database of all licensed addiction treatment centers in the state. You can search the database by city, county or zip code to target a specific area you’re interested in doing business in. This is a great due diligence step for assessing the competition in your area and honing in on the types of services and demographics - as well as the level(s) of care -  you want to target in your business model. Keep in mind that services targeting specific populations, like people of color, women with children, and other underserved segments, tend to be underrepresented in Tennessee. 

What does this mean for you? That there are holes in the market with build-in demand that are ready to be filled!   

Completing Your Addiction Treatment Center Licensing Application in Tennessee 

Complete applications for new providers interested in opening a new facility in Tennessee includes a fact sheet and an initial application. The application itself is only 3 pages long. However, like most states, Tennessee requires that residential facilities also submit proof of physical inspection by the State Fire Marshal or another appropriate life safety inspection agency. You’ll also need to submit background check paperwork as well as a financial statement form. You can find an easy dashboard for all of the necessary licensing forms here. 

After you submit your application, the state will complete an inspection prior to approving your license. Licensing inspections are actually being done virtually during the COVID-19 pandemic in Tennessee. The Office of Licensure has created a powerpoint presentation to describe how the virtual inspection process works and what facilities need to do to prepare for one. 

If you run into problems while preparing your application, you can contact one of the three regional licensing offices in Tennessee: East Tennessee, Middle Tennessee and West Tennessee. Each has a separate set of contact information for the state’s licensure program. 

Tennessee Requires You to Prove Financial Solvency Before Obtaining Your Addiction Treatment Center License 

Some states don’t involve themselves in the financial side of your business. Tennessee is not one of those states.

Before Tennessee grants your license, they want to be sure that your organization is positioned to treat patients responsibly. Proving financial solvency is a prerequisite for obtaining your addiction treatment center license in Tennessee. To complete the financial statement form, you’ll need to provide an accounting of your business assets, liabilities, operating expenses and projected income. 

The Fees for Addiction Treatment Center Licensing in Tennessee Are Very Reasonable 

For residential treatment centers, licensing fees in Tennessee are determined by the number of beds you’ll have at your facility. For centers with 3 or fewer beds, the fee is only $200. For centers with 50 or more beds, the fee clocks in at $1220. 

When compared with other states’ fee schedules, Tennessee’s is actually on the more reasonably priced side of the equation. 

Non-residential facilities are assessed based on the number of services offered at the center. The fees for non-residential facilities range from $810 to $1620, which, again, is on the more affordable spectrum for state licensing fees in the United States. 

Thinking of Opening an Addiction Treatment Center in Tennessee? Find Help Here!

Behave Health is committed to making it easier - and more profitable - to operate evidence-based, results-focused addiction treatment centers. 

Our all-in-one app puts clinical, administration, staff, admissions, alumni, residents, treatment plans, billing, insurance authorizations and more - all at your fingertips. 

Get your free trial started today and see why more addiction treatment centers prefer Behave Health.

Need help with certification? Behave Health can also help direct you to the right resources for help with Licensing or Accreditation by either The Joint Commission or CARF. Mention to your product specialist that you’re interested in this service after you start your free trial!