Are you a physician or mental health professional in a group practice in California? Amid so much demand and increasing pressure for additional behavioral health resources in the Golden State, have you considered transforming your organization into an outpatient addiction treatment facility? 

If you have been considering it, you’re not alone. 

There are now over 15,000 addiction treatment centers and counting in the United States. Studies estimate that the addiction treatment space will continue to expand to the tune of 5.2% annual growth, which is an astronomical increase for an industry that is already pulling in $42 billion every year. 

Not only do addiction treatment outpatient programs offer medical and/or behavioral health practices an excellent business opportunity, but they also represent a meaningful way to make a big difference in the addiction crisis tearing through our country post-COVID. 

Today, let’s look at what it takes to transform a single-specialty or multispecialty group practice into an Intensive Outpatient Program (IOP) or a Partial Hospitalization Program (PHP) for addiction treatment in the state of California. 

Understand that You’ll Need to Get Licensed to Turn Your Group Practice Into an Outpatient Facility 

California recently began requiring licenses for providers of “detoxification, individual sessions, group sessions, educational sessions, or alcoholism or drug abuse recovery or treatment planning, and incidental medical services.” 

If you plan on founding an IOP or PHP program for addiction treatment, your clinical services will most definitely fall under one or more of these categories. 

You’ll need to complete the Initial Treatment Provider Application from DHCS and pay the fees to get licensed. 

You can read more about the process in one of our more recent blog posts, Everything You Need to Know to Open an Addiction Treatment or Drug Rehab Center in California. 

You’ll also need to obtain at least one Level of Care Designation from DHCS and/or at least one designation from the ASAM Level of Care Certification, according to California Health and Safety Code Section 11834.015. 

Get an LPHA if Your California Group Practice Doesn’t Already Have One

Depending on the type of group practice you currently have, it’s likely that there will be holes in the required personnel you need to pull off an IOP/PHP program. 

There are a few positions that every IOP/PHP program in California will need to fill, but perhaps the most important one is an LPHA, or Licensed Practitioner of the Healing Arts. In California, all of the following are considered to be LPHAs: 

• Physicians 

• NPs

• PAs

• RNs

• Registered Pharmacists

• LCPs

• LCSWs

• LPCCs

• LMFTs

In order to run an IOP or PHP program in California, you’ll need at least one of these clinicians to sign off on all treatment planning documentation. If your group practice already consists of LPHAs, then you’re one step ahead of the game. If it doesn’t, then you’ll need to look into hiring one or more of these medical professionals to elevate your program to the level of evidence-based treatment. 

Consider Your Target Location and Your Target Population for your IOP or PHP Addiction Treatment Program

Do a feasibility and market analysis before making any big changes to your group practice or investing any time or energy into turning your existing practice into an IOP or PHP program. Some locations are saturated with addiction treatment services while others are desperate for evidence-based care. Take the time to consider what resources are already available in your area and investigate opportunities for individuation. What makes your program different from the others? Why should a patient choose to get treatment with your organization and not another? 

Research Regulations and Codes in Your County and City in California That Affect IOP and PHP Addiction Treatment Programs 

While the state has made big strides in regulating addiction treatment providers, counties and towns in California often have their own rules when it comes to treatment businesses. Zoning regulations are a giant area of concern for many group practices looking to open an IOP or PHP program. Ensure that the type of facility you have (or are planning on acquiring or renting) is suitable for an IOP and/or PHP program both in terms of layout and in terms of zoning laws. Even if the program is technically allowed to operate in a certain location, that doesn’t automatically make that location the best choice. It will be easier to run your program if you site it in an area that will be seen as less controversial than in an area rife with NIMBY sentiment. 

Turning Your Group Practice into an Addiction Treatment Outpatient (IOP) Facility? We’re Here for You.

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!