Selling a behavioral health practice in Virginia

DBHDS licenses stay with the licensee

DBHDS licenses providers of behavioral health and developmental services in Virginia, including many outpatient, community, and residential programs and substance use services. Virginia Code § 37.2-405 provides that no license issued under that chapter is assignable or transferable.

So a buyer of a licensed program needs its own DBHDS license for the services it will run, and its Medicaid enrollment and managed care credentialing follow. Buyers plan the licensing application early and usually make the issued license a closing condition, with an operating plan for the period in between.

ABA therapy: Board of Medicine licensure

Under Virginia Code § 54.1-2957.16, it is unlawful to practice as a behavior analyst or assistant behavior analyst, or to use those titles, without a license from the Board of Medicine. Buyers will confirm every clinician's Virginia license in addition to BACB certification.

Medicaid ABA in Virginia is governed by DMAS policy and the state budget, which can set service limits. Buyers look at how much of your revenue comes from Medicaid versus commercial plans and how changes in DMAS policy would affect authorized hours.

What Virginia buyers underwrite

These items move price the most in Virginia.

Licensing path

The buyer's DBHDS license for each licensed service and its timing.

Clinician licensure

Virginia licenses for analysts, therapists, and prescribers.

Payer contracts

Cardinal Care plans and commercial payers in the practice's name.

Documentation

Service records that support billing and DBHDS requirements.