Selling a behavioral health practice in Washington

A new license before the first service

Under WAC 246-341, when a licensed behavioral health agency changes ownership, the department requires a new license application, fees, and a statement on how clinical records will be held and managed. The agency must receive the new license under the new ownership before providing any behavioral health service.

A change of ownership includes any transaction that changes the agency's Uniform Business Identifier or federal tax ID. A purchase of the entity that keeps those numbers may be treated differently from an asset purchase, which makes structure an early question for counsel.

ABA therapy: licensure and Apple Health

Washington's Department of Health licenses behavior analysts and assistant behavior analysts and certifies behavior technicians. A licensed behavior analyst generally holds current BCBA certification. Buyers will confirm every clinician's Washington credential.

Apple Health, Washington Medicaid, covers ABA for members under 21. Buyers look at Apple Health versus commercial revenue, authorization trends, and analyst tenure.

Attorney General notice

Washington requires 60 days' notice to the Attorney General for transactions involving provider organizations of seven or more health care providers, a definition that includes therapists. Many behavioral health group practices are large enough to be covered, so build that period into the timeline.

What Washington buyers underwrite

These items move price the most in Washington.

Licensing path

Whether the deal changes the UBI or tax ID, and the new license timing.

Clinician credentials

Washington licenses and certifications for every clinician.

Payer contracts

Apple Health plans and commercial payers.

Timeline

Attorney General notice, if it applies.