245G Substance Use Disorder License


The 245G Substance Use Disorder license business package is for individuals looking to start a 245G licensed substance use disorder treatment program, either as a new company or an add on to an existing company.



We have 245G policies and procedures, some which are templated, and some that will be specific to your program, which will help get you a big start on your 245G application. They provide a foundation for you to work off of.




Package 1: $4600 – Does not include certain highly specific policies for your program

Package 2: $6200 – Includes all policies for DHS application for outpatient treatment 

Includes ***LIMITED SCOPE*** legal representation, as well as:

  1. 245G policies and procedures ONLY for topics listed below for each respective package
  2. Access to your documents electronically for you to edit
  3. Technical follow up edits to policies and procedures below ONLY, based on DHS feedback
  4. Attendance at DHS licensor meetings (if conducted virtually) for your program prior to approval 
  5. Video training and education on what the documents mean and how to use them ONLY for topics listed below
  6. Employment law documents for your business



  • Target Population (Specific to your program)
  • Admission/Service Initiation Policy (Specific to your program)
  • Service Termination and Transfer Policy (Specific to your program)
  • Assessment Policy
  • Treatment Planning
  • Policy for HIV Education
  • Tuberculosis, STDs, Pregnancy Education Requirements
  • Personnel Policies and Procedures (Specific to your company’s roles and positions)
  • Client Records Policies and Procedures
  • Methods for Meeting Client Outcomes
  • Client Rights Policy
  • Behavioral Emergency Policy
  • Maltreatment of Vulnerable Adults
  • Maltreatment of Minors Policy
  • Drug and Alcohol Policy
  • Reporting a Client Death
  • Control of Facility Drugs Policy
  • Description of Health Care Services
  • Mental Health Consultation Services (Specific to your program)
  • Administration of Medication
  • Transfer of Records and Clients upon Closure (Specific to your program)
  • Funds and Property Policy




All of the policies listed in Package 1 are included plus the following policies:


  1. Description of Treatment Services and Schedule of Treatment Programming (Specific to your Program)
  2. Description of Additional Treatment Services (Specific to your Program)
  3. Hours of Operation (Specific to your Program)
  4. Opiate Antagonist Policy (Guidance on how to set required elements to implement)
  5. Program Abuse Prevention Plan (Specific to your Program and Property)


***Neither Package includes all other parts of the 245G application, including but not limited to: (1) Letter of Need; (2) Filing fees; (3) Credentialing/insurance contracts; (4) Worker’s Compensation Insurance; (5) Actually submitting the 245G application to DHS; (6) Residential policies; (7) Enhanced rate policies


What do I need to start?


At least 60 days prior to submitting your application, you must notify, in writing, the county human services director in the county for which you would like to open your treatment facility of your intent to open a treatment center. In your notification, at a minimum, you must include:


1) a description of the proposed treatment program; and

2) a description of the target population to be served by the treatment program.






1. Onboarding (1-2 Days)

We send onboarding documents to you 1-2 business days after your initial consultation. Onboarding documents include a Proposal, Representation Agreement, and Invoice.


2. Questionnaire (1-2 Days)

After we receive the onboarding documents back, we will send you a 245G questionnaire. This generally takes clients 1-2 days to complete and we are available if you have any questions as you go through the questionnaire. 

3. Letter of Need and Securing Property (2-4 Months)

If you have not obtained a Letter of Need from the county in which you will be opening your 245G program, it can take up to 60 days from when you submit the request. You will also need to find a property to either purchase or rent for your program. This can take a varying amount of time.

4. 30 Minute Call to Gather Information (2-4 business days depending on schedules)

After you complete and submit your questionnaire back to Holt Law, we will reach out to you to schedule a 30 minute call to gather more information about your 245G treatment program so we can tailor the policies to your program and facility.

5. Complete Application and Send Documents (3 – 4 Weeks)

Holt Law will write up your 245G program policies that are to be submitted for the 245G application with DHS. Once they are complete, we will send you the documents electronically. 

6. DHS Application Review (2-3 Months)

DHS generally takes between two to three months to assign you a licensor and review your policies. Your assigned licensor will then reach out to you to set up a video meeting to review your policies, check in about the status of your facility property, and go over next steps. At this first meeting the licensor will also request a mock file to be submitted by you. 

7. Submission of Revised Policies to DHS Licensor (2-3 Weeks)

We will revise the policies we wrote for your application according to the DHS licensor’s feedback and submit them back to the licensor. 

8. Additional Meeting with DHS for Facility Requirements (1-2 Months. Can be as little as one month or can be as much as two months)

If your facility does not pass certain codes or you have been unable to obtain all of the approvals you need, this step may take an additional couple of months as you continue to work with the DHS licensor through this process. 

A DHS licensor will need to do a site visit to check several things and specifically go over your program abuse prevention plan. 

9. Receipt of DHS License

10. MHCP Enrollment (30-60 Days)

Once you receive your 245G license from DHS, you will need to complete MHCP Provider Enrollment and contract with insurance companies for future service reimbursement. 


Rates/Reimbursement for Services

Adult Non-Residential Treatment Base Rates

  • Individual Treatment / 1 hour / H2035 / $72.11
  • Group Treatment / 1 hour / H2035 HQ / $35.03
  • Comprehensive Assessment / per session / H0001 / $162.24
  • Treatment Coordination / 15 minutes / T1016 / $11.51
  • Peer Recovery Support / 15 minutes / H0038 / $15.02
  • SUD-MOUD-Methadone / per diem / H0020 / $13.39
  • SUD-MOUD-Methadone-all other / per diem / H0047 / $22.66
  • SUD-MOUD PLUS  Methadone / per diem / H0020 / $48.42
  • SUD-MOUD PLUS all other / per diem / H0047 / $57.69


Additional Resources

MN DHS Substance Use Disorder (SUD) Services

Substance Use Disorder (SUD) Services Enrollment Criteria and Forms



How many days prior do I have to notify the county in writing about my plans to open?

At least 60 days in advance.

What is to be included in this Letter of Need to the county?
  1. a description of the proposed treatment program
  2. a description of the target population to be served by the treatment program.
How long does this process take?

If you have not submitted your letter of intent, we can start working on your policies and procedures during the 60 day waiting period from the day you submit your letter of intent to when your application can be submitted to DHS. Otherwise, it generally takes 6-9 months, with variables dependent on DHS & general response time from all parties. 

Do you need to have a location for your program before submitting the application?

Yes, it is best to have a location for your program prior to submission of your DHS application to avoid a possible rejection of the application. 

What are the staff requirements for a 245G program?

You will need a Treatment Director and an Alcohol and Drug Counseling Supervisor. The qualifications for a treatment director are:

1) Have at least one year of work experience providing direct services to individuals with substance use disorder OR

One year of work experience managing or in the administration of direct services to individuals with substance use disorder;

2) Have a baccalaureate degree or three years of work experience in administration or personnel supervision in human services; and

3) Know and understand the implications of 245G, §626.557, and 626.5572, and chapters 245A and 260E. Documentation of the treatment director’s knowledge must be documented in the personnel record.

And the qualifications for the alcohol and drug counseling supervisor are:

1) Meet the qualification requirements in Subd. 5 (Alcohol and Drug Counselor Qualifications);

2) Have three or more years of experience providing individual and group counseling to individuals with substance use disorder; and

3) Know and understand the implications of 245G, §245A.65, 626.557, 626.5572, and chapter 260E.

Can one person qualify to be both the treatment director and the counseling supervisor?

Yes, one person can hold both positions if they are qualified for both. 

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