How to start a behavioral health clinic in Texas

Texas requires a Chemical Dependency Treatment Facility license (outpatient and/or residential sites); HHSC Texas Certified Community Behavioral Health Clinic certification from Texas Health and Human Services Commission (HHSC) — Health Care Regulation, facility licensing to operate a behavioral health clinic. Fee: $1,200. Processing time: HHSC reports whether the application is materially complete within 45 days; any on-site inspection occurs within 45 days of a complete packet with deficiencies reported within 30 days; the license issues within 45 days of receiving all compliance evidence and fees. Applications lapse if compliance is not shown within six months.

License required

Yes

License

Chemical Dependency Treatment Facility license (outpatient and/or residential sites); HHSC Texas Certified Community Behavioral Health Clinic certification

Issuing agency

Texas Health and Human Services Commission (HHSC) — Health Care Regulation, facility licensing

Fee

$1,200

Fee details

Base fee for initial and renewal licenses $1,200 (includes application and review), plus $125 per outpatient or residential site at a separate address and $35 per bed. Paid by cashier's check or money order; nonrefundable.

Renewal

Every 2 years · Licenses expire two years after issuance; file the renewal request and fee ($1,200 base plus site/bed fees) at least 60 days before expiration.

Processing time

HHSC reports whether the application is materially complete within 45 days; any on-site inspection occurs within 45 days of a complete packet with deficiencies reported within 30 days; the license issues within 45 days of receiving all compliance evidence and fees. Applications lapse if compliance is not shown within six months.

Insurance and bonds

Proof of liability insurance is required with the initial application (amount not stated in 564.403).

Accreditation

Not required for the CDTF license. HHSC certifies Texas CCBHCs (Form 1203); certification lasts three years, review usually takes 3-4 weeks, and applicants must hold a CDTF license. Texas is not among the federal CCBHC demonstration states named by Medicaid.gov.

Survey and inspection

On-site inspection within 45 days of a materially complete application when needed.

Regulation

26 TAC Chapter 564, Subchapter D (564.401-564.408); Texas Health and Safety Code Chapter 464

1. Confirm the program is not exempt (e.g., a licensed practitioner's private office practice is exempt)
2. Submit the licensure application, operational plan (26 TAC 148.502), new-applicant checklist items, proof of liability insurance and fee
3. Supply any additional material HHSC requests
4. Pass the on-site inspection if HHSC conducts one and correct deficiencies
5. Receive the two-year license; for CCBHC status, apply to HHSC for T-CCBHC certification (a CDTF license is required)

Program

Texas Medicaid and CHIP (Texas Health and Human Services Commission, HHSC)

Enrollment portal

Provider Enrollment and Management System (PEMS), run by TMHP

Fiscal agent

Texas Medicaid & Healthcare Partnership (TMHP), the claims administrator for HHSC

Application fee

Under the ACA, institutional providers owe an application fee on initial applications, new practice locations, revalidation and re-enrollment. PEMS says at the end of the application whether a fee is due, and the application cannot be processed without it. Proof of a fee paid to Medicare or another state must be submitted with the application. The amount changes each calendar year. 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

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. The TMHP provider manual section we reviewed does not list a separate state fingerprint process.

Site visit

Under federal rule (42 CFR 455.432), the state must visit moderate- and high-risk providers before and after enrollment. Every enrolled provider must allow unannounced on-site inspections. TMHP's manual notes that moderate- and high-risk providers cannot bill for a new practice location until it is approved and added to the enrollment record.

Revalidation

Revalidation is due by the end of the enrollment period, called the 'revalidation due date'. Most providers have a five-year period, but some get shorter periods based on risk or other factors. Revalidation is filed online in PEMS only, opens up to 180 days before the due date, and repeats provider screening. It is not complete until every deficiency is resolved. If the period ends first, TMHP automatically disenrolls the provider. Group administrators can revalidate for their performing providers.

Full Texas Medicaid enrollment guide →

CON program

No

Texas 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)

5,039 (as of Sep 13, 2026)

Total Medicaid and CHIP enrollment (latest reported month)

3,915,559 (as of Jun 1, 2026)

All Texas Behavioral health Medicaid rates, ranked →

• TX Community Living Assistance & Support Services (CLASS) Waiver (1915(c))
• TX Deaf Blind with Multiple Disabilities Waiver (1915(c))
• TX Home and Community-Based Services (HCS) Program Waiver (1915(c))
• TX Home Living Program Waiver (1915(c))
• TX Medically Dependent Children Program (MDCP) Waiver (1915(c))
• Texas Healthcare Transformation and Quality Improvement Program (1115)
• TX Youth Empowerment Services (YES) Waiver (1915(c))

Texas waivers and waiting lists →