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Indiana

Navigating Behavioral Health and Substance Use Disorder Facility Licensing in Indiana: 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 Indiana’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 Indiana

  1. 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.
  2. Review the regulations for the service you’ll provide
    Consult the Indiana Family and Social Services Administration (FSSA), Division of Mental Health and Addiction (DMHA) website to understand the current licensing regulations and requirements for your facility type. It’s also important to check whether there are any potential barriers to licensure in Indiana—such as local zoning laws, health department approvals, or state-level service capacity limits. While Indiana does not currently require a Certificate of Need (CON) for behavioral health facilities, it’s essential to verify with DMHA or local authorities for any updates or regional restrictions.
  3. Get your documents and processes in order
    Compile the documents required for your Indiana application. You’ll definitely need:
  • Organizational formation documents
  • Staffing plans
  • Facility floor plans/ building documents 
  • Relevant policies and procedures
  1. Once you finalize your application, submit it to the state
  • Mental Health Facilities (Residential, PHP, IOP): Submit to DMHA
  • Substance Use Disorder Facilities (Detox, Residential, PHP, IOP): Submit to FSSA, DMHA
  • See below for more information on these agencies
  1. Prepare for Inspection
    DMHA will conduct an on-site inspection to ensure your facility meets all physical, operational, and safety requirements. Be sure your leadership team and staff are ready to demonstrate compliance.
  2. 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 Indiana

 

Licensing for Substance Use Disorder (SUD) Facilities

Substance use disorder treatment facilities in Indiana are licensed by the Indiana Family and Social Services Administration (FSSA), Division of Mental Health and Addiction (DMHA).

PHP and IOP for SUD:
PHP and IOP programs for substance use disorder treatment must provide structured, intensive services and comply with Indiana requirements for:

  • Qualified staffing
  • Therapeutic programming
  • Patient care standards
  • Emergency preparedness

Detox and Residential Treatment:

Detox programs in Indiana must be licensed by FSSA, DMHA and must meet state standards for:

  • Medically supervised withdrawal management
  • On-site licensed professionals (e.g., physicians and nurses)
  • Patient safety and clinical oversight
  • Staffing qualifications
  • Facility operations and compliance with DMHA regulations

 

Licensing for Mental Health Facilities

Mental health facilities in Indiana are licensed by the FSSA, Division of Mental Health and Addiction (DMHA).

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 also licensed by DMHA 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.