Procedure to Establish a Substance Abuse Service Facility


Purpose: This procedure describes the steps to establish substance abuse services or facilities in North Carolina. The following services or facilities in this category are licensed under G.S. 122C: This flow chart is intended to be a general guide to aid the applicant in getting the approvals needed for licensing and certification. There may be variations in the process since individual projects may have special circumstances.

Contacts: For questions regarding any part of this process, please contact the appropriate sections of the N.C. Division of Health Service Regulation.

Certificate of Need Section (919) 855-3873
Construction Section (919) 855-3893
Medical Facilities Planning Section (919)855-3865
Mental Health Licensure and Certification Section (919) 855-3795


Procedure Summary:
Substance abuse services or facilities in North Carolina must be licensed. Applicants must first consult the State Medical Facilities Plan to determine if there is a demonstrated need for such a service or facility and then obtain a certificate of need. Applicants for all services or facilities in this category must get approval for the construction of the facility, and then obtain a license. State licenses are then renewed every two years.

Procedures:

Step

Process followed
1.0 Consult the State Medical Facilities Plan: Medical Facilities Planning Section
1.1 Applicants can learn the number of substance abuse detoxification and residential treatment beds needed by reviewing the annual State Medical Facilities Plan, which is published for each calendar year and which specifies where in the state they are needed.
1.2 Applicants can also find the Certificate of Need (CON) review schedule and deadline for submittal of applications for these beds, if available, in the State Medical Facilities Plan. No one may develop new substance abuse detoxification or residential treatment beds in an existing or new facility or relocate existing beds without first obtaining a certificate of need. A certificate of need cannot be issued if the plan does not show a need for those beds.
2.0 Obtain a Certificate of Need: Certificate of Need Section
2.1 The applicant submits a certificate of need application for the proposed beds according to the review schedule outlined in the State Medical Facilities Plan. If the applicant is leasing the facility, both the prospective owner/lessor and the lessee of the facility must submit a joint application.
2.2 The CON Section advertises a written public comment period and local public hearing. Written public comments on an application may be submitted during the first 30 days of the review period
2.3 The CON Section conducts a public hearing no more than 20 days from the conclusion of the written comment period at which time applicants are given an opportunity to respond to public comment on the application.
2.4 A decision to approve or disapprove an application is made by the CON Section within 150 days of the beginning of the review period.
2.5 A certificate of need is issued 35 days after the date of approval if a petition for a contested case hearing is not filed.
3.0 Apply for a License: Mental Health Licensure and Certification Section
3.1 Applications may be obtained by contacting the Mental Health Licensure and Certification Section. A separate license is required for each facility that is maintained on a separate site, even if the site is under the same ownership or management.
3.2 The applicant sends the completed application along with floor plans and photographs of the facility (for existing buildings) to the Group Care Licensure Section.
4.0 Obtain construction approval: Construction Section
4.1 Facilities that have not been previously licensed as G.S.122-C facilities require Construction Section approval before licensing is possible. Prospective facility operators are encouraged to consult with the Construction Section of DFS prior to purchasing property intended for use as a facility.
4.2 The Construction Section receives the floor plans from the Group Care Licensure Section. New facilities that do not require Construction Section approval are therapeutic or supervised programs with three or fewer clients and day facilities with no overnight sleeping accommodations. (No Construction Section approval is required for license renewal. However, renovations, additional construction or major repairs must have Construction Section approval.)
4.3 The Construction Section reviews the floor plans and writes the applicant with requirements or review comments and instructions. The Construction Section acts as the control point for distribution of plans and specifications to the Department of Insurance. For large facilities, plans are generally reviewed in three stages: schematic, design development, and final working drawings.
4.4 Applicants and their designers work closely with local building officials and fire prevention officials as well as with the Construction Section to ensure the facility is building code- and licensure-compliant.
4.5 At least two weeks before construction is complete, the applicant sends a letter to the Construction Section requesting a final construction inspection with project information and local approvals. The facility must be ready with all systems operational and all construction completed by the final construction inspection date. The Construction Section does not do punchlist inspections; punchlist inspections are the responsibility of the designer, contractor, and owner.
4.6 The Construction Section sends a copy of the final inspection document list, inspects the facility for licensure and for certification, and reviews the required final documentation.
4.7 If some minor deficiencies are found, the applicant submits a plan of correction.
4.8 When all items are acceptable, the Construction Section sends the construction approval transmittal form (form 4086) to the Group Care Licensure Section.
4.9 After licensing, the facility maintains documented evidence of compliance with applicable fire and sanitation codes, including an annual fire inspection.
5.0 Obtain the License: Mental Health Licensure and Certification Section
5.1 After the facility receives notification that the Construction Section has approved a new facility, the applicant contacts the Mental Health Licensure and Certification Section.
5.2 The Mental Health Licensure and Certification Section consultant for that county conducts an on-site inspection of the facility to determine compliance with all rules and statutes. If the facility is operated by or contracted with an area program, the division may, in lieu of conducting an on-site inspection, accept written verification from the area program or the Division of MH/DD/SAS that they have conducted an on-site review and the facility is in compliance with rules and statutes.
5.3 The Mental Health Licensure and Certification Section determines whether a facility is in compliance with:·
  • Building plant and physical plant requirements
  • Annual fire and safety and sanitation requirements. Each facility must maintain documented evidence of compliance with applicable fire, and sanitation codes including an annual fire inspection. (Facilities providing a day services with no overnight sleeping accommodations or periodic service that does not handle food do not require a sanitation inspection report.)
  • Applicable rules and statutes.
5.4 All required licensure documents are reviewed for completeness by the Mental Health Licensure and Certification Section. If acceptable, a license shall be issued to the specific premise for types of services indicated on the application.
5.5 A license is valid for a period not to exceed two years from the date on which the license is issued.
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This page last updated on February 05, 1999