245G Residential Substance Use Disorder License

The 245G Substance Use Disorder Treatment (Residential) application is a licensed healthcare program in Minnesota. The basic summarized process overview is below (updated April 2021):

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. Fortunately I have done it before but there are a lot of procedures that are location-dependent.

2) Location – Residential. You will need to pick a location that is OK for building/zoning/fire code compliance. You should inquire with the local authorities (and I can help with this as part of my representation.)

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.

4) Pricing and timeline. The pricing and timeline is dependent on how responsive and hands-on you are for the application process. I charge $300 per hour and I am as efficient with my time as possible. I recommend budgeting  $15,000 as the maximum for legal based on previous client times, but it could be less if you take on the responsibility of some of the work. Timeline I conservatively say 1 year 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.

5) Advanced breakdown of process:

1) First and foremost you need to pick a location and not commit to it until the zoning, 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 either subletting or buying a house, so there is either a lease to review and negotiate or financing, inspections, and closing for the house(es).3) In the background, we are getting our staffing contracts, policies and procedures and sample mock file ready for the application to be submitted.4) Once we have the property, 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 1 week later and then submit all their edits in a week (or longer if it requires unique things like getting certifications.)6) Then we spend the next month getting zoning/building/fire approvals.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. I recommend using the new MPSE (online portal) to expedite the process.9) You may follow up to apply to networks such as Ucare/etc. I connect you to a credentialing/enrollment specialist and monitor her work. (She is 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.
*This process may change due to factors outside my control.

Pricing: $300 per hour; working efficiently and tailored depending on how much work you want to do yourself; estimated (but not guaranteed) total estimated project is $15,000

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