How to start a behavioral health clinic in Pennsylvania

Pennsylvania requires a DDAP license for freestanding drug and alcohol treatment activities (outpatient, intensive outpatient, partial hospitalization, etc.); separate DHS/OMHSAS license for psychiatric outpatient clinics under 55 Pa. Code Chapter 5200 from Pennsylvania Department of Drug and Alcohol Programs (DDAP) for SUD; Department of Human Services, Office of Mental Health and Substance Abuse Services (OMHSAS) for psychiatric outpatient clinics to operate a behavioral health clinic.

License required

Yes

License

DDAP license for freestanding drug and alcohol treatment activities (outpatient, intensive outpatient, partial hospitalization, etc.); separate DHS/OMHSAS license for psychiatric outpatient clinics under 55 Pa. Code Chapter 5200

Issuing agency

Pennsylvania Department of Drug and Alcohol Programs (DDAP) for SUD; Department of Human Services, Office of Mental Health and Substance Abuse Services (OMHSAS) for psychiatric outpatient clinics

Renewal

Every year · DDAP licenses expire one year from issuance; DDAP schedules an annual on-site inspection before renewal.

Survey and inspection

DDAP issues a license only after an on-site inspection and inspects annually for renewal; it has a right to enter and inspect (709.15).

Regulation

28 Pa. Code Chapter 709 (incl. 709.11-709.15) for SUD treatment; 55 Pa. Code Chapter 5200 (psychiatric outpatient clinics, effective 2019-10-12)

1. For SUD treatment, apply to DDAP on its prescribed forms and procedures (28 Pa. Code 709.11)
2. DDAP notifies the local Single County Authority (SCA) of the application
3. Pass DDAP's on-site inspection; a full license issues once all Chapter 709 requirements are met (a provisional license is possible under 709.13)
4. Renew annually after DDAP's annual on-site inspection
5. For a mental health clinic, obtain a separate OMHSAS psychiatric outpatient clinic license and meet 55 Pa. Code Chapter 5200

Program

Pennsylvania Medical Assistance (Medicaid) / HealthChoices, PA Department of Human Services, Office of Medical Assistance Programs

Enrollment portal

PROMISe Provider Portal — Electronic Provider Enrollment (PE) Application

Fiscal agent

PROMISe (DHS claims and enrollment system); the DHS electronic enrollment manual was prepared by Gainwell

Application fee

Since February 27, 2023, applicants pay the enrollment application fee described in MA Bulletin 01-16-14 ('ACA Enrollment Application Fee'). To claim an exemption, submit the documentation that bulletin describes. Under the federal rule (42 CFR 455.460), institutional providers pay the CMS application fee when they first enroll, re-enroll or revalidate. The fee is $750 for calendar year 2026. Individual physicians and non-physician practitioners do not pay it. A fee already paid to Medicare or to another state's Medicaid program counts.

Fingerprinting

High-risk providers must complete fingerprint-based criminal background checks; this requirement returned February 27, 2023 (MA Bulletin 99-16-13 sets the risk levels). If fingerprints are not submitted, the service location in PROMISe is closed. Under federal rules (42 CFR 455.434 and 455.450), the state places provider types in 'limited', 'moderate' or 'high' risk levels. High-risk providers, and anyone who owns 5% or more of one, must submit fingerprints for a criminal background check.

Site visit

Moderate- and high-risk providers get a site visit from DHS or its contractor (MA Bulletin 99-16-13). If the visit cannot confirm the application, for example because the location is not operating, or the provider does not cooperate, the service location is closed.

Revalidation

Federal rule (42 CFR 455.414) requires the state to revalidate every enrolled provider at least once every 5 years. DHS sends revalidation notices 90 and 30 days before the due date (MA Bulletin 99-16-10 has the details). The revalidation date is visible in ePEAP. A missed due date closes the service location in PROMISe, and the provider must then file a reactivation application.

Full Pennsylvania Medicaid enrollment guide →

CON program

No

Pennsylvania certificate of need details →

State minimum wage

$7.25 an hour

Effective

2009-07-24

Scheduled increases

No scheduled change found in the official sources reviewed.

HCBS 80/20 rule

Federal baseline: 42 CFR 441.302(k) requires the state to show that each provider spends at least 80% of Medicaid payments for homemaker, home health aide and personal care services under 1915(c) waivers on direct care worker pay and benefits. Compliance starts 2030-07-09 (for managed care, the first rating period starting on or after that date); annual payment-adequacy reporting under 441.311(e) starts 2028-07-09. A state may set a lower share for state-defined small providers and exempt providers facing hardship, each only through a public notice-and-comment process. The eCFR text has not changed since 2024-07-09. No state-published 80/20 implementation step (small-provider criteria, hardship exemption or reporting guidance) was found for this state in the official sources reviewed.

Community/behavioral health agencies and mental health clinics — active organization NPIs (NPPES)

4,264 (as of Sep 13, 2026)

Total Medicaid and CHIP enrollment (latest reported month)

2,952,912 (as of Jun 1, 2026)

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