How to Turn Your Group Practice into an Outpatient Addiction Treatment IOP or PHP Facility in Florida 

September 29, 2022 Ben Weiss

So you have a successful group practice in Florida and you’re noticing that your seeing a lot of clients for addiction issues. You’re wondering if perhaps you should make it official and open an Intensive Outpatient (IOP) or Partial Hospitalization Program (PHP) for addiction treatment, using your existing group practice as a springboard for organizing your business.

If this describes you, you’re not alone. Many of our clients find themselves in this position. Some go on to open IOP programs, others just stay in the dreaming phase. The difference between these two types of clients is the existence of a concrete plan. Just as you used a concrete plan to open your group practice, you’ll have to use the same process to get started on your IOP project. The scale may be larger, but the process is essentially the same. Don’t let overwhelm paralyze you. Just take one step at a time and before you know it, you’ll be the proud owner of your very own addiction treatment IOP program!

Turning Your Group Practice into an Addiction Treatment IOP Program in Florida Means Understanding and Beating the Competition

Florida has the most rehab or addiction treatment facilities of any state in the nation. When you make a general search for addiction treatment on findtreatment.gov, the state returns 12,923 listings for facilities, with 10,501 of those facilities being outpatient, or IOP, centers.

If you’re already working in addiction treatment in Florida, then you probably know that roughly 8% of Florida residents regularly use drugs and alcohol in risky ways. About 410,000 people are diagnosed with SUD in Florida per year.

While these stats may seem high, they actually aren’t among the highest rates of addiction in the nation. In fact, places with the highest rates of addiction - like Washington DC - have very few resources available for those in need of SUD treatment. In other words, the excessive number of treatment facilities in Florida do not reflect an elevated rate of addiction in-state. There are a few reasons for this: Florida’s pro-business climate makes it more lucrative to operate in the state, patients are more likely to travel to Florida for treatment than other states because of its reputation as a vacation destination, and, in some situations, there are insurance-related advantages to operating in Florida.

If you plan on operating an IOP or PHP program in Florida, it is especially important that you make a careful study of your competition and find a niche within the community that you can deliver better than anyone else.

Evaluate Your Options for Turning Your Group Practice into an Addiction Treatment IOP Program in Florida

Turning your group practice into an IOP program is an exercise with many decision points along the way. There is more than one way to handle each of the different obstacles you’ll encounter. Here’s a quick list of a few of the choices you’ll be faced with:

How Will You Structure Your IOP Business?

Just as there is more than one way to run a group practice, there is more than one way to run an IOP business. Will you be using the same structure as before? Will you be making changes? Will you need a co-investor or co-owner? Will you hire employees or keep some staff as independent contractors? Will you be self-pay only or will you bill insurance? When answering these questions, consult with your legal team as well as your financial team, as the implications of each of these decisions can be complicated and far-reaching.

Will You Keep Your Current Location or Find a New One?

Is your program going to need physical space and, if so, where will that be? This decision point draws on several factors: demand in your target area, competition in your target area, zoning laws and characteristics of the physical space itself. Will you stay in your current location? Is that allowed by the state, county and city? Do you have ample room for group therapy? What about a proper reception area?

Start the Florida Addiction Treatment IOP Licensing Process Early

As a group practice, it’s likely that you did not have to seek licensing from the state to provide individual care that might include addiction treatment services. In a group practice, generally the individual medical license of each provider is enough to satisfy regulatory bodies. When you open an IOP or PHP program, however, that change triggers a state requirement concerning licensing as an addiction treatment facility.

The 2022 Florida Statutes, Title XXIX, Chapter 397 states:

397.401 License required; penalty; injunction; rules waivers.—(1)

1) It is unlawful for any person or agency to act as a substance abuse service provider unless it is licensed or exempt from licensure under this chapter.

There are exceptions to this rule, but. If you’re like most of our clients, it is unlikely your IOP program will qualify for one. They are:

Being a hospital or a hospital-based program
Being a nursing home
Being an education ONLY program
Being a government facility
Being a solo physician, nurse, psychologist or social worker
Being a religious organization
Catering only to those with developmental disabilities
Doing only DUI work
Doing only crisis stabilization

It’s our experience that very few people looking to transition their group practice into an IOP program in Florida have programs like these.

Turning Your Group Practice into an IOP Program in Florida? We Can Help.

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!