Colorado
Navigating Behavioral Health and Substance Use Disorder Facility Licensing in Colorado: A Step-by-Step Guide
You can’t start a compliant and successful mental health or substance use treatment program without first ensuring you are adhering to the state’s licensing requirements. Whether you’re seeking to open an outpatient facility (providing outpatient, intensive outpatient/ IOP, or partial hospitalization/ PHP) or a residential facility (detox/ withdrawal management, high intensity or low intensity residential) navigating Colorado’s regulatory landscape can be complex and time-consuming.
At Arrow Consulting, we specialize in guiding providers through every stage of the licensing process – ensuring your facility meets all regulatory standards and is fully prepared to deliver high-quality, legally compliant care.
Step-by-Step Guide to Getting Licensed in Colorado
- Decide what service you want to provide and which license you’ll need
Decide whether your facility will provide mental health services or substance use disorder services. This decision determines the regulations you must follow and guides your application process. - Review the regulations for the service you’ll provide
Consult the Colorado Department of Public Health and Environment (CDPHE) website to understand the current licensing regulations and requirements for your specific facility type. It’s also important to check for any potential barriers to licensure in Colorado—such as local zoning laws, fire and building code compliance, or county-level health department approvals.
While Colorado does not currently require a Certificate of Need (CON) for behavioral health facilities, it’s essential to confirm with CDPHE or local authorities for any updates, restrictions, or regional requirements that may apply.
- Get your documents and processes in order
Compile the documents required for your Colorado application. You’ll definitely need:
- Organizational formation documents
- Staffing plans
- Facility floor plans/ building documents (in some cases, Colorado requires your inspection is completed by a licensed architect)
- Relevant policies and procedures
- Once you finalize your application, submit it to the state
- Mental Health Facilities (Residential, PHP, IOP): Submit to CDHS
- Substance Use Disorder Facilities (Detox, Residential, PHP, IOP): Submit to CDHS, OBH
- See below for more information on these agencies
- Prepare for Inspection
Depending on the service and level of care you decide, Colorado may have a virtual meeting or might want to come on-site for an inspection. Make sure your facility is in good shape and your leadership is prepared! - Make any corrections and start providing services
You may need to make some revisions to policies or other items as discussed with the state. Once you have completed your plan of correction, you will be issued your license and may commence providing services to your community.
Understanding Behavioral Health Facility Licensing Requirements in Colorado
Licensing for Substance Use Disorder (SUD) Facilities
Substance use disorder treatment facilities in Colorado are licensed by the Colorado Department of Public Health and Environment (CDPHE), Office of Behavioral Health (OBH).
PHP and IOP for SUD:
PHP and IOP programs for substance use disorder treatment must provide structured, intensive services and comply with Colorado requirements for:
- Qualified staffing
- Therapeutic programming
- Patient care standards
- Emergency preparedness
Detox and Residential Treatment:
Detox and residential treatment programs in Colorado must be licensed by the Colorado Department of Public Health and Environment (CDPHE) and must meet state standards for:
• Medically supervised withdrawal management
• On-site licensed professionals (e.g., physicians, nurses, clinical staff)
• 24/7 structured care in a residential setting
• Individualized treatment planning
• Staffing ratios and clinical oversight
• Facility safety, sanitation, and operational compliance with CDPHE regulations
Licensing for Mental Health Facilities
Mental health facilities in Colorado are licensed by the Colorado Department of Public Health and Environment (CDPHE).
PHP and IOP for Mental Health:
Mental health PHP and IOP programs must meet state standards for:
- Therapeutic services
- Staffing qualifications
- Patient safety
- Quality care
Residential Treatment Facilities in Mental Health:
Facilities providing residential mental health services must be licensed by CDPHE and are required to meet state standards for:
- 24/7 care in a structured environment
- Therapeutic services
- Staffing qualifications
- Patient safety
- Quality care
Let Arrow Consulting handle the entire process for you – ensuring a smooth, compliant, and efficient licensing experience.