245G Residential Substance Use Disorder License (*limited scope*)

The 245G Substance Use Disorder Treatment (Residential) application is a licensed healthcare program in Minnesota. The basic summarized process overview is below (updated Jan 2023):

1) Start with application. The main application is here. This is the starting point for us to apply. There is a $500 filing fee. https://edocs.dhs.state.mn.us/lfserver/Public/DHS-7118-ENG The biggest component of this is editing your policies and procedures. I provide limited scope help and a base of policies and procedures as part of this package

2) Location – Office. You will need to pick a location that is OK for building/health/zoning/fire code compliance which is very complicated for a residential setting. You should inquire with the local authorities (and I do NOT help with this as part of my representation.) The location also determines which county to get the “Letter of Need” from.

3) Services. You will need to pick which type of 245G substance abuse treatment center services you want to provide. There are different rates and requirements based on which services you will offer which are outlined in the application. The limited scope package only includes non-intensive residential services with none of the add-ons. 

4) Pricing and timeline. The limited scope representation requires your hands-on you are for the application process. I charge a flat fee which is a limited scope representation fee, meaning I cannot help the entire way of the licensing process and you will need to provide help. Timeline I conservatively say 9 months from start to providing services, but each time I do an application it is quicker. I have seen an application be approved in 6 months. I cannot guarantee that you will get a license from experience if you do not actively participate in the application process and have staff and the knowledge for the rigorous application process.

5) Advanced breakdown of process:

1) First and foremost you need to pick a location and not commit to it until the zoning, health, building and fire inspections can give you as clear of a “pre-approval” as we can get. It won’t be easy and it likely won’t be in writing and they will not exactly understand what you are doing which is where I come in to try to get them to commit to answers so we don’t get surprised later. This process can take anywhere from 1 month to 3 months realistically unless you already have properties picked out.

2) Depending on your financial situation, you need to go through the process of creating a business plan and determining your budget for the business and acquiring a location or leasing a location.

3) In the background, we are getting our staffing contracts, policies and procedures and sample mock file ready for the application to be submitted. The mock file is not included and must be completed by your clinical staff.

4) Once we have the residential location, we submit what we have for policies and procedures.

5) About 2 to 4 weeks later DHS will respond with what they want us to edit and invite us to a phone call. We respond quickly and talk to them and then submit all their edits in a week (or longer if it requires unique things like getting certifications.) We do not assist with edits related to staffing, clinical judgement, medical judgement, 

6) Then we spend the next month getting health/zoning/building/fire approvals. You will also need a separate board and lodging license with the Minnesota Department of Health.

7) DHS then does an on-site visit where I am present and they go through our policies and procedures, meet us and look at building. They will have some final suggestions, which we can go ahead and send to them. Then we get the initial approval letter about 3 weeks later.

8) After license approval, we go through “DHS Provider Enrollment.” This takes about 30/45 days for them to respond. Hopefully they approve us on the first submission. Otherwise we submit additional information. You may be able to back-date claims all the way back to the date you apply for Provider Enrollment, so we can talk about this.

9) You may follow up to apply to networks such as HealthPartners/Medica/Ucare/etc. I connect you to a credentialing/enrollment specialist and monitor their work. (They are reasonably priced and efficient.)

10) At this time you can technically start placing clients. Once you are “open” you will likely fill up very quick.

11) Then the main job is for management and staff to actually understand the policies and procedures and use them to document all of the records well for the recipients. Your job will be compliance and responding to staff and recipient issues. Regrettably, there will be many of these, but it is normal.

12) Your first big re-certification will come after the first year, although DHS will come do an on-site visit before then and ask for records on occasion to check in on you.

13) For on-going compliance consider one of the general counsel programs.

***This process may change due to factors outside our control.