Selling a behavioral health practice in Michigan

Substance use treatment: a licensing application on every sale

LARA licenses substance use disorder programs in Michigan. Its licensing instructions treat a change of ownership as requiring a state licensure application with a fee, the same as a corporate name change. Buyers will want that application prepared alongside the purchase agreement so the program can operate lawfully from the closing date.

Expect diligence on each licensed service category and site, recent inspection results, and how treatment records support level of care and billing.

ABA therapy: licensure and Medicaid

Michigan created licensure for behavior analysts and assistant behavior analysts by adding Part 182A to the Public Health Code. Buyers will confirm each analyst's Michigan license in addition to BACB certification.

Michigan Medicaid began covering ABA on January 1, 2016, for people diagnosed with autism spectrum disorder up to age 21. Buyers look at your split between Medicaid and commercial revenue, how authorizations have trended, and analyst tenure and caseload.

What Michigan buyers underwrite

These items move price the most in Michigan.

Licensing path

LARA change of ownership filings for SUD programs and timing.

Clinician licensure

Michigan licenses for analysts, therapists, and prescribers, plus tenure.

Payer contracts

Medicaid and commercial contracts in the practice's name.

Documentation

Authorizations and treatment records that support billing.