So, you’ve got a successful group practice going in Texas! Congratulations. Now you’re thinking about transitioning your business into an outpatient facility offering IOP or PHP (Intensive Outpatient or Partial Hospitalization programs) for addiction treatment. This can be a very smart move — if you execute it carefully.
Market analysts estimate that, with the current explosive growth in the behavioral health industry, the addiction treatment market will see 5.2% annual growth for the foreseeable future. Considering the industry already sees a profit to the tune of $42 billion dollars a year, it’s clear that this type of healthcare is a good bet for savvy group practice owners looking to break into the industry.
Today, we’ll take you step by step through the process of turning your group practice into an addiction treatment IOP program.
Complete a Feasibility and Market Assessment for Your Texas IOP Program
Does your area already have too many IOP programs? Is there a high demand for addiction treatment in your location? What communities are underserved in your area? What specific populations can you help with increased services?
Opening an IOP program is expensive. Be sure that you’ve done your due diligence about the market in your area before you begin spending money on this project.
Settle on a Business Structure or Organizational Model for Your Texas IOP Program
What business structure makes the most sense for your IOP program? Will you need investors or co-owners? Whether your group practice currently employs independent contractors or retains employees on payroll, you’ll also need to settle on a sustainable staffing model and plan.
Choose a Location and Property for Your Texas IOP Program
Zoning laws vary from city to city and county to county. Many municipalities are beginning to pass laws that illegally exclude addiction treatment programs and recovery residences from certain zones. Be sure that your program is ideally placed and that it does not violate any state, county or city regulations.
You’ll also need to decide if you’ll be renting or buying the property. If you’re staying in the same building as your group practice, you’ll have to examine how it may be adapted to accommodate an IOP program. This likely means the addition of group spaces for group therapy.
Get Credentialed With Insurance (if You’re Not Already) in Texas
Most addiction treatment IOP programs accept some forms of insurance. If you’re running your current group practice completely on self-pay, you’ll probably want to consider getting yourself and some or all of your staff credentialed with at least one insurance company, if not several. Begin this process early because this takes time and you don’t want opening day delayed for this reason.
Do the Math on How Many Patients You’ll Need at Your Addiction Treatment IOP Program
Your business plan should include your financial goals for your IOP program. Know your break even point and your target profitability and work backwards to discover the number of patients you’ll need to have enrolled in your program at any given time.
Get Your Addiction Treatment IOP Program Licensed in Texas
According to the Texas Health and Safety Code, Chapter 464:
Sec. 464.002. LICENSE REQUIRED. A person may not offer or purport to offer chemical dependency treatment without a license issued under this subchapter, unless the person is exempted under Subchapter C or is working for or providing counseling with a program exempted under Subchapter C.
In other words, you will need to get a license with the state unless you are running a purely religious institution. In private and even group practice, it’s likely that you did addiction treatment work at the one-on-one level and never acquired a license to do so, specifically. In fact, in Texas, “individuals who personally provide counseling or support services” to people with SUD are not required to get licensed by the state. It’s only when you are “purporting” to “offer a chemical dependency treatment program” that you trigger the state licensing requirement in Texas.
You can find out more about how to get your IOP program licensed in Texas here.
Considering Opening an Addiction Treatment Outpatient (IOP) Facility in Texas? We’re Here for You.
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