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Rehab Rescue: Basic Guide to Starting a Rehab/Treatment Center

Rehab Rescue: Basic Guide to Starting a Rehab/Treatment Center  http://www.rehabrescue.solutions/  1.800.706.0318

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Basic Guide to Starting a Rehab/Treatment Center


Are you thinking about getting into the rehab business? Thinking about buying into an existing operation? Building a new one? Well, there are a few things you will need to do first before starting down that road. Of course, the first question you must ask yourself is…why? Why do you want to get into the rehab business? Answers will vary from that good old feeling that comes from helping those in need, to, it just makes great business sense. The economic benefits aside, operating an addictions rehab is truly helping people. People who need professional help with their demons. Your rehab would provide them a needed service, which can turn the addict’s life around to sobriety! And YOU get paid well for it. Take a look below at a nugget of info from “Market Watch” online business news service:


Drug, alcohol and other addiction rehab in the United States is big business- $35 billion, this year. There are now 14,000+ treatment facilities and growing. A total of 2.5 million persons received treatment, but many more need it and facilities are filled to capacity. However, insurance coverage for rehab is limited. As a result, most of the tab is paid by government/state agencies. High end niches have emerged for the well-heeled (think Hollywood celebrities) and new niches are emerging in areas such as: sex addiction, problem gamblers, Internet addiction, and nicotine addiction. Facilities are also diversifying into treating people with anxiety disorders, eating disorders, and post-traumatic stress by veterans of the wars in Iraq and Afghanistan.


Did you see the part about the rehab business being a 35 billion dollar industry here?! That’s big business. But can YOU do it? For example, “I want to own and operate my own rehab or treatment center. What qualifications do I need? And do they vary from state to state?” Ok, now that’s a great question! Rehab Rescue provides all your instructional needs to get you on track and making money. And we’ll get more involved with Rehab Rescue later. Right now, take a look at 20 basic questions to ask yourself before starting any kind of business:


  • Why am I starting a business?
  • What kind of business do I want?
  • Who is my ideal customer?


  • What products or services will my business provide?
  • Am I prepared to spend the time and money needed to get my business started?
  • What differentiates my business idea and the products or services I will provide from others in the market?
  • Where will my business be located?
  • How many employees will I need?
  • What types of suppliers do I need?
  • How much money do I need to get started?
  • Will I need to get a loan?
  • How soon will it take before my products or services are available?
  • How long do I have until I start making a profit?
  • Who is my competition?
  • How will I price my product compared to my competition?
  • How will I set up the legal structure of my business?
  • What taxes do I need to pay?
  • What kind of insurance do I need?
  • How will I manage my business?
  • How will I advertise my business?


Are you done yet? I know, it’s a lot to take in if you haven’t been thinking along these lines already. There are many issues which must be sorted out before going into business. “First-timers” who are completely unaware of most of these requirements should get appropriate advice in order to avoid very problematic outcomes (that is where REHAB RESCUE comes in!). It is imperative that you consider building a team and make use of specialty services while you are in the planning stages for your practice. Each of these questions above is just as important as the next. Each one is a sound business question that needs an answer.

Start with a Business Plan. You must have a really good business plan put together, especially if you’re in need of financial backing for your venture. Napkin notes will not cut it at this juncture, so get busy and produce a fantastic business plan. A good business plan will help you determine how much your start-up costs are going to be and what it’s going to take to run your business. A thorough business plan forces you to look at your business structure and the market that surrounds your business idea.

Now that you have figured out why you want to own a rehab, and have ironed out some of the details involved with that. Plus, you’ve come up with a great business plan that suits your needs. Now before going on, let’s take a minute to talk about buying into an existing rehab or treatment center, versus building a brand new one.

Common sense tells you that buying into an existing treatment center or rehab is cheaper than building a new one from the ground up. I

n most cases you’d be right, however the cost of buying into a large, well established rehab, a high-end rehab, for example, might cost as much as building a smaller center from the ground up. If you build, then you must first locate properly zoned land, pull permits, hire construction teams, and start building. This process may be more headache than it’s worth to some. Others may enjoy the challenge of building. For some, the option of buying into an existing rehab is much simpler and less stressful, not to mention the money machine is already in motion.

So the question of to build a new rehab, or to buy an existing rehab is a question you’ll have to answer yourself based on your needs, wants, financial backing, and research.


While we’re on the subject of researching, don’t forget to look up the various rules and regulations governing rehab centers in your state.

These are things you as a future rehab owner must know. Explore your Local, State and Federal licensure requirements for the modality of treatment you desire to open. Look through your Department of Human Resources for your State and see what it might take as far as the rules and regulations for a Rehab Center. You will need state and then also decide if you want to be JCAHO or CARF accredited as well.


At this point you’re ready to face another set of questions to think about:


  • What type of licensure or accreditations do I need to open?
  • When do I need to consider Federal Trade name registration?
  • Should I form a Profit, non-profit, INC or LLC?
  • Where do I hire, what staff do I need?
  • What kind and type of insurance do I need?
  • Who handles compliance paperwork?
  • What kind of HIPAA compliant software do I use?
  • How do I get zoned?
  • What about marketing? What is legal?
  • How do I handle drug testing?
  • How do I fill my beds?
  • How do I train my staff?



So now that you have decided on either buying into an existing rehab, or building one, you have to give some thought towards your

infrastructure and policies. If you simply step into a running rehab, the policies and ways they do business are already in place. Changing them may not be wise, unless of course they are found to be lacking. If you are qualified to review the policies, then do so and implement any updates or changes needed. If you need to hire someone who is qualified to review them, then that is an option as well.

Starting a new rehab from ground up means you will be creating your policies and infrastructure. How will you set your infrastructure? Will you perform all billing functions in-house, or outsource your billing? Will you have integrative services or collaborate with external resources? You’ll need some company policies, right? Sure. Establishing concrete agency policies and implementing procedures to adhere to said policies are the vital lifeline to your success. The legal and regulatory climate alone has changed so rapidly during the last decade that a host of new policy areas have emerged. Writing and researching agency policy and procedures manual is a lengthy and important process that must be completed prior to going into business. Each agency has a different set of policies and procedures. Know the industry, understand the state and federal compliance regulations that govern your industry in order to establish effective internal policies and it is important to be aware of all guidelines. Many of your contractors and state licensure entities will ask you for a copy of your policy and procedure book upon application for licensure. So be prepared, begin the process now some licensing bodies require accrediting, certifying, licensing, and regulatory bodies, such as the Joint Commission on Accreditation of Healthcare Organizations (JCAHO), the Commission on Accreditation of Rehabilitation Facilities (CARF), Department of Substance Abuse and Mental Health / DCF SAMH. Policies demonstrate credibility and adds to your reputation for quality services. Policy and procedure manuals demonstrate accountable and best practice programs. Retention and utilization is the bottom line for agencies that make it or break it in this industry so remember that. Mental Health and Substance abuse treatment Centers are encouraged by standards such as 65D30, C.A.R.F. and Joint Commission Hospital Accreditation to annually review and implement training and staff development for all staff members.


AND that is just the beginning part. Are you ready for the rest?


Or if you want to make your life simple, you can hire www.rehabrescue.solutions. The team will be able to assist you through this crazy process and get you making money and a good return on your investment in no time. You can be as hands on or as hands off as you like. You can reach them at 1.800.706.0318




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