Kentucky, like most states in the south, have been hit extremely hard by the opioid epidemic and the impacts of COVID on mental and behavioral health. Kentucky ranked number four in the United States for overdose deaths between April 2020 and April 2021. The CDC reports that the overdose rate in Kentucky is up 49 percent since 2019.

While Kentucky struggles with out of control addiction rates, efforts are being made in the state to improve the situation. In 2017, Kentucky became the 45th state to instate a law called “Tim’s Law,” which makes it easier for courts to mandate outpatient treatment for people who suffer from SUD. Kentucky is also slated to begin instituting House Bill 7, also known as the “Recovery Ready Communities Bill,” which will, in part, help counties in Kentucky to identify holes in the types of addiction treatment available in their communities and address access issues for people in need of treatment. 

If you’re considering opening an addiction treatment center in Kentucky, you’re in luck. Sadly, the demand for treatment shows no signs of slowing in the state, which means you shouldn’t have difficulty admitting patients. On a happier note, the state of Kentucky makes it unusually easy to get addiction treatment centers licensed in the state. 

Read on to learn more about how to open an addiction treatment center in Kentucky. 

In Kentucky, You Need to Apply for a License to Operate an Addiction Treatment Center 

Kentucky, like most states in the US, requires providers to secure a license with the state in order to offer addiction treatment of any kind. 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.

The only organizations that are exempt from this requirement are self-help organizations, like AA, federally certified organizations, doctor’s offices and private practice treatment outfits, and other treatment-adjacent organizations like emergency sobering stations (“drunk tanks”). 

Kentucky Calls Addiction Treatment Centers “Alcohol and Other Drug Treatment Entities” or AODE for Short 

It’s important to know that every state refers to addiction treatment providers in a slightly different way. In Kentucky, drug rehabs are called AODEs, short for Alcohol and Other Drug Treatment Entities. AODE is a short-hand way to refer to all addiction treatment centers that are not exempt from the state’s licensing requirements mentioned above. 

You’ll Work With the Kentucky Cabinet of Health and Family Services to Get Your Addiction Treatment Center Licensed

The Kentucky Cabinet of Health and Family Services’ Division of Health Care oversees the licensing of addiction treatment centers in the state. This agency is also responsible for licensing such organizations as long-term care facilities, alternative birthing facilities, abortion providers and psychiatric hospitals. 

The Application for Licensing Addiction Treatment Centers in Kentucky is Only 4 Pages Long

Kentucky’s approach to addiction treatment center licensing is very straight-forward. The application - formally referred to as Application for License to Operate a 

Non hospital-based Alcohol and Other Drug Treatment Entity (AODE), is a scant four pages long and the list of required attachments is similarly brief. 

Every complete application will include: 

• Basic contact information 

• Basic ownership information 

• Fire Marshal documentation in the form of a Life Safety Code survey from your local Fire Department

• Application fee 

Organizations seeking to provide MAT treatments for patients that include opioid-based medications will have to include additional documentation specific to that treatment modality, but even those requirements are basic by national standards. 

Don’t try to email your application to the agency. You’ll need to submit a paper application to a physical address in Kentucky. Send your application to: 

CHFS Office of the Inspector General 

275 East Main Street, 5E-A 

Frankfort, Kentucky 40621

Thinking about Kentucky for Your Next Addiction Treatment Center? We Can Help. 

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!