Selling a behavioral health practice in Tennessee

TDMHSAS licensing

TDMHSAS licenses mental health and substance use facilities and services in Tennessee under Title 33 and its rules, and it publishes the licensing forms providers use to report changes, including a change of status form. How a particular sale is treated, and whether the buyer needs a new license, depends on the structure and the services involved, so settle it with counsel and the department before signing.

Buyers will look at each licensed service and site, recent inspections, and documentation supporting level of care and billing.

ABA therapy: licensure and TennCare

Tennessee created the Applied Behavior Analyst Licensing Committee in 2014 to license and regulate behavior analysts, and its chair sits on the Board of Examiners in Psychology. Buyers check every analyst's Tennessee license alongside BACB certification.

ABA is a covered benefit through TennCare managed care plans and CoverKids for eligible children, typically with an autism diagnosis and prior authorization. Buyers look at your mix of TennCare plan and commercial revenue and how authorizations have trended.

What Tennessee buyers underwrite

These items move price the most in Tennessee.

Licensing path

How TDMHSAS treats the deal and the timing of any new license.

Clinician licensure

Tennessee licenses for analysts, therapists, and prescribers.

Payer contracts

TennCare plans and commercial contracts in the practice's name.

Documentation

Authorizations and treatment records that support billing.