How to License a Residential and Outpatient Substance Abuse Rehab in New Jersey

The opioid epidemic is raging, and in places like New Jersey, the need for residential and outpatient treatment is badly needed.

Our firm has identified the key steps to licensing a residential or outpatient substance abuse facility in New Jersey. It is a document specific process, which must be very accurate before a site visit and subsequent inspection is done and certainly before the license is granted.


To license a facility in NJ, the following is an overview of key information and steps for licensing:

Agency in NJ: Dept of Health, Office of Licensing (OOL)  and Technical Assistance Unit (TAU)

Licenses are not transferable so a new license must be submitted on new ownership. 

Submit: 1 application form and 1 copy

Fees: Outpatient: $2,050; Residential $1000 + $500 per bed

3 phases: 

  • App review
  • Physical Plant inspection
  • Licensing

Qualified and CPR trained staff must be hired before licensing.

There is a specific list of persons needed: Clinical director, licensed counseling staff, etc.

50% of counseling staff must be licensed.

There is a 60 day notice before coming on site by the state for an inspection.

Partial list of key documents needed:

  • EIN
  • Certificate of Incorporation or partnership
  • Org chart
  • Out of state compliance 
  • Tentative Staffing roster with resumes
  • Complete Policies and Procedures manual
  • Emergency plan
  • Job Descriptions

Partial list of Physical Plant documents needed:

  • Certificate of Occupancy needed with proper zoning
  • Lease agreement
  • Fire inspection
  • Smoke or Fire detection certification
  • Elevator and Sanitation certification if applicable
  • Boiler and sprinkler certification 
  • Housekeeping contract
  • Pest control contract

Once granted, the license is conditional for 6 months, and will be surprise-inspected within that time frame.

Licensing and getting a facility up and running is complicated and intense. Doing it correctly means the difference between starting in 4 months vs starting in over a year+.  If you have any questions or comments on how to license or starting your facility, please let us know at "The intersection between medicine and law."