Selling a behavioral health practice in Colorado

The Behavioral Health Administration and BHE licensing

Rules adopted in December 2023 and effective January 1, 2024 moved Colorado behavioral health licensing to the Behavioral Health Administration. The Behavioral Health Entity structure lets a provider hold one license with different service endorsements, and it replaced the earlier SUD, involuntary treatment, and community mental health center licenses. Providers that must hold BHE licensure include SUD license holders, CMHCs, and practices with 10 or more full-time-equivalent behavioral health professionals.

That 10-FTE threshold matters for growing group practices: a practice that crosses it needs a BHE license, and a buyer will check whether you have one if you should. On a sale, confirm with BHA and counsel what filing your structure requires.

The 2026 Applied Behavior Analysis Practice Act

Colorado's governor signed HB 26-1425 on June 2, 2026, creating the Applied Behavior Analysis Practice Act. Beginning July 1, 2028, behavior analysts and assistant behavior analysts generally must be licensed by the new Colorado Behavior Analyst Licensing Board, with a current certificate from an approved certifying entity and a fingerprint-based background check. The act also regulates ABA provider entities.

For sellers of ABA practices, this is a transition to plan for. Buyers will want to know that your clinicians can obtain licenses on time and how the entity rules will apply to your clinic.

What Colorado buyers underwrite

These items move price the most in Colorado.

Licensing status

BHE licensure where required, and readiness for ABA licensing by 2028.

Clinician stability

Tenure, caseload, and credentials.

Payer contracts

Health First Colorado and commercial contracts.

Documentation

Records that support billing and service endorsements.