Written for owners, clinical directors and investors who are opening a substance use disorder or mental health program in Minnesota, adding a level of care, or trying to keep an existing license in good standing.
Additional Minnesota Licensing Guides
- Minnesota Drug and Alcohol Inpatient Treatment Licensing
- Minnesota Drug and Alcohol Outpatient Treatment Licensing
- Minnesota Mental Health Inpatient Licensing
- Minnesota Mental Health Outpatient Licensing
- Minnesota License Reinstatement
What Minnesota Changed for Applicants in 2026
Everything in this section comes from the Department of Human Services implementation plans and the statutes those plans cite.
Two numbers and one new form changed the math for anyone filing in Minnesota this year. On January 1, 2026, the fee for a new application under chapter 245G (substance use disorder treatment), chapter 245F (withdrawal management) or section 245I.23 (intensive residential treatment and residential crisis stabilization) became $2,100, per Minn. Stat. 245A.10, subd. 3. The yearly fee moved too. In its 2025 implementation plan, the Department of Human Services (DHS) says the annual fee for the smallest 245G program, 1 to 24 people, went “from $600 to $2,600,” and each satellite location adds another $500 to the renewal invoice.
The form is newer. Since July 1, 2026, the date DHS gives, certain applicants and license holders must sign a notarized attestation saying whether an unaffiliated business or consultant helped prepare the license application, a renewal, or the documents and written policies filed with them. DHS’s 2026 SUD implementation plan describes the group as those that “receive public funds.” The statute itself, Minn. Stat. 245A.04, subd. 1(j) as added by Laws 2026, chapter 121, article 3, section 7, is narrower on its face: it reaches an applicant or license holder that elects to receive publicly funded reimbursement from the commissioner for services DHS designates as high-risk under section 256B.044. The plan states the consequence plainly: “The commissioner shall not issue a license if an applicant, license holder, or controlling individual” has not provided a required attestation. Our reading is that anyone who used outside help should confirm with DHS whether the requirement reaches them, answer accurately if it does, and keep a copy of what that help produced.
One older step still surprises people who have licensed programs in other states. At least 60 days before filing for a new 245G license, the applicant has to notify the county human services director in writing that it intends to open a treatment program (Minn. Stat. 254B.03, subd. 2(c)). The county then has 60 days to send DHS a written statement, which the commissioner must consider, and DHS wants proof of the notice in the application itself (245G.03, subd. 2(b)).
Primary Regulatory Agencies
Roles below are described the way each agency, or the statute that empowers it, describes them.
- Minnesota Department of Human Services, Licensing Division, part of the DHS Office of Inspector General, which licenses substance use disorder treatment under chapter 245G, withdrawal management under chapter 245F, and intensive residential treatment services (IRTS) and residential crisis stabilization (RCS) under section 245I.23, and certifies mental health clinics under section 245I.20
- Minnesota Department of Health (MDH), Health Regulation Division, which licenses hospitals, including psychiatric hospitals, under Minn. Stat. 144.50 to 144.58, along with the supervised living facility, board and lodging, and boarding care licenses that residential programs operate under
- Minnesota Board of Behavioral Health and Therapy, which licenses alcohol and drug counselors (LADC) under chapter 148F and Minnesota Rules chapter 4747
Minnesota Behavioral Health Licensing Snapshot
A summary of the statutes named in each row, with no analysis added.
| Primary SUD Regulator | DHS Licensing Division, chapter 245G |
| Mental Health Facility Licensing | DHS licenses IRTS and RCS (245I.23) and certifies clinics (245I.20). MDH licenses psychiatric hospitals (144.50 to 144.58) |
| Residential Treatment | A DHS 245G license plus “the appropriate license from the Department of Health” for the building (245G.21, subd. 4) |
| Outpatient Treatment | SUD outpatient needs a 245G license, with ASAM 1.0, 2.1 and 2.5 hours set in 254B.19. Outpatient mental health is excluded from licensing, and clinic certification is optional |
| Withdrawal Management | A separate 245F license, either a clinically managed or a medically monitored program |
| Facility License Required | Yes for 245G, 245F and 245I.23 programs and for hospitals. No for outpatient mental health or a licensed professional in solo private practice |
| County Step | Written notice to the county human services director at least 60 days before a new 245G application (254B.03, subd. 2) |
| Certificate of Need | None. Hospitals instead fall under a construction moratorium (144.551) with project-by-project exceptions written into the statute |
| National Accreditation | Not required. Joint Commission accreditation, and no other accreditor, can qualify an established 245G program for alternative licensing inspections (245G.031) |
| Fees | $2,100 application (245G, 245F, 245I.23). Annual 245G fee from $2,600 (1 to 24 people) to $20,000 (200 or more), plus $500 per satellite |
| Decision Clock | DHS acts within 90 working days after a complete application (245A.04, subd. 1) |
| Renewal | Annual license fee, with DHS sending renewal invoices in late September |
| Key Regulations | Minn. Stat. ch. 245A, 245G, 245F and 245I, 254B.19, 144.50 to 144.58, 144.551, ch. 148F, and Minn. R. ch. 4640, 4665, 4747 and 9544 |
Which Minnesota Rules Apply to Which Program
Our arrangement of the statutes. No single state document lines them up program by program.
| Program | Primary license | Second license or step |
|---|---|---|
| Residential SUD (ASAM 3.1, 3.3, 3.5) | DHS, 245G | MDH facility license and the 60-day county notice |
| Outpatient SUD, including IOP and partial hospitalization (ASAM 1.0, 2.1, 2.5) | DHS, 245G | 60-day county notice |
| Withdrawal management (ASAM 3.2 and 3.7) | DHS, 245F | None if the program is licensed as a hospital, since 245F does not apply there |
| IRTS or RCS | DHS, 245I.23 | MDH board and lodging, supervised living facility or boarding care license, 5 to 16 beds |
| Outpatient mental health | No license | Optional DHS clinic certification under 245I.20 |
| Psychiatric hospital or unit | MDH hospital license | Hospital bed moratorium, 144.551 |
Minnesota writes ASAM levels directly into statute. Section 254B.19 sets the weekly hours: up to eight hours at Level 1.0, 9 to 19 at 2.1, 20 or more at 2.5, at least five hours a week at 3.1, and daily services seven days a week at 3.3 and 3.5. It mentions 3.7 only as withdrawal management, which it routes to chapter 245F. A residential program that wants an outside party to confirm its level can pursue CARF’s ASAM Level of Care Certification, which covers adult Levels 3.1, 3.5 and 3.7. It will not appear on the DHS license, but referral sources can confirm it in CARF’s provider search under the “ASAM Level of Care 3.7” filter (or 3.1 or 3.5). Neither CARF nor ASAM lists withdrawal management among the certified levels, so we would not count it toward a 245F program, and nothing we found in 245G or 254B.19 makes it mandatory.
Programs Covered
- Residential substance use disorder treatment under chapter 245G
- Outpatient substance use disorder treatment, from Level 1.0 through partial hospitalization
- Withdrawal management, clinically managed or medically monitored
- Intensive residential treatment services and residential crisis stabilization for adults
- Outpatient mental health practices and certified mental health clinics
- Psychiatric hospitals and hospital psychiatric units
Key Licensing Requirements
Pulled from the chapter 245A, 245G and 245I text and DHS’s licensing pages.
- Written notice to the county human services director 60 days or more before a new 245G application
- The DHS-7118 license application, which DHS links for both 245G and 245F programs, with the $2,100 fee
- Background studies that satisfy chapter 245C, which 245G.03, subd. 1 makes part of every 245G application
- An MDH license for the building before a residential SUD, IRTS or RCS program serves anyone
- The 2026 attestation on outside help with the application or policies, where it applies
- LADC or exempt counselors, a treatment director and an alcohol and drug counselor supervisor for 245G programs
Frequently Asked Questions
What does it cost to get licensed in Minnesota?
Start with the state fees. A new 245G, 245F or 245I.23 application costs $2,100 as of January 1, 2026. The annual 245G fee then runs $2,600 for 1 to 24 people, $3,000 for 25 to 49, $5,000 for 50 to 74, $10,000 for 75 to 99, $15,000 for 100 to 199 and $20,000 for 200 or more, plus $500 for each satellite. A residential program also pays MDH for its building license under a separate statute, and we have not confirmed that amount. A certified mental health clinic pays $500 to apply and $1,550 a year, and DHS says the clinic application fee rises to $2,100 on January 1, 2028. Build-out and payroll will outweigh all of these, and both depend on the building and census you pick.
How long does Minnesota behavioral health licensing take?
DHS has 90 working days to act once an application is complete (Minn. Stat. 245A.04, subd. 1), which is roughly four and a half months. A new 245G program cannot file until its 60-day county notice period has run. Adding background studies to those two clocks, our estimate is 5 to 8 months for outpatient SUD and 8 to 12 months for residential, where the MDH building license and inspections run alongside the DHS file. These are planning estimates, not state deadlines. A psychiatric hospital is a separate kind of project because of the bed moratorium.
What catches Minnesota applicants off guard?
Filing with DHS before the county clock has run. The 60 days start when the county human services director receives written notice, and DHS expects proof of it in the application. Close behind is assuming the DHS license covers the building. Residential SUD, IRTS and RCS programs also need an MDH license. The third is newer: the July 2026 attestation on outside help, which older checklists still showing a $500 fee leave out entirely.
Can anyone guarantee a Minnesota license?
No. DHS makes the decision, and chapter 245A lets it deny an applicant for false or misleading information or a history of noncompliance. What a careful preparer controls is an application that answers every element of 245G or 245I, a county notice dated correctly, and an attestation that tells DHS the truth about who helped.
How much staff will I need to open a program in Minnesota?
A 245G program needs a treatment director, an alcohol and drug counselor supervisor with three or more years of counseling experience, and counselors who are licensed under chapter 148F or exempt, and residential sites keep a responsible staff member on duty 24 hours a day. Pay is the bigger variable. BLS puts the median for Minnesota substance abuse, behavioral disorder and mental health counselors at $58,780, with the middle half earning $48,910 to $65,430 (BLS OEWS, May 2025), a little under the $59,350 national median. By our arithmetic, three counselors at that median cost about $176,000 a year before the director, the supervisor and benefits. Minnesota’s temporary permit lets a program hire counselors before they hold the full LADC, and that changes the math. A temporary permit holder (ADC-T in DHS materials) has an associate degree, 270 clock hours of coursework and an 880-hour practicum behind them and counsels under a Minnesota LADC for twelve-month terms, and interns or former students can fill up to half of the treatment staff under 245G.11. A seasoned LADC supervisor guiding those counselors at lower wages while they work toward full licensure commonly cuts clinical payroll 40 to 60 percent below what a fully licensed counseling staff would cost, and a withdrawal management unit can use one RN to oversee several LPNs instead of staffing only RNs. The final roster depends on your census and on which levels of care you license.
Licensing
Who licenses behavioral health programs in Minnesota?
DHS licenses the programs: substance use disorder treatment, withdrawal management, IRTS and RCS. It also certifies mental health clinics that ask for it. MDH licenses hospitals and the residential buildings those DHS programs operate in, and the Board of Behavioral Health and Therapy licenses alcohol and drug counselors. The 2025 move of child care and foster care licensing to the new Department of Children, Youth, and Families left adult SUD and mental health licensing with DHS.
Does a counselor in private practice need a program license?
Not while working alone. Section 245G.02 exempts licensed professionals in private practice, and 245G.01 defines that as someone practicing within the scope of their own license who “does not affiliate with other licensed or unlicensed professionals to provide alcohol and drug counseling services.” Once several counselors offer substance use services together, our reading is that the group is a 245G program and needs the license, the fee and the county notice.
Does accreditation help with a Minnesota license?
Only one accreditor, and only after a program has a track record. Under section 245G.031, the “accrediting body” is The Joint Commission. An accredited 245G program can ask DHS for alternative licensing inspections once it has had at least one full DHS inspection after its initial license, has had no conditional, suspended or revoked license and no substantiated maltreatment it was responsible for in five years, and has corrected every correction order from the past two years. Programs serving clients with children under 245G.19 and opioid treatment programs are not eligible. We found no comparable provision for CARF, for COA, or for 245F and 245I programs.
Is the DHS application information session required?
DHS runs two-hour webinars on how to apply for 245G, 245F, 245I IRTS and RCS, Rule 36 adult residential, and certified mental health clinic licenses, covering “application requirements, application process, and general policy writing.” The session page requires registration and lists 2026 dates of March 18, June 17, September 16 and December 16, but it does not say attendance is mandatory, so we treat it as optional and worth the afternoon.
Facility
Do residential programs need two licenses?
Yes. A residential 245G program “must have the appropriate license from the Department of Health” (245G.21, subd. 4), and an IRTS or RCS must be licensed or certified as a board and lodging facility, supervised living facility or boarding care home (245I.23, subd. 19). MDH takes supervised living facility applications on its own form, and its Health Regulation Division answers at 651-201-4200.
Is there a Certificate of Need in Minnesota?
No. The closest thing is the hospital construction moratorium in Minn. Stat. 144.551, which bars new hospitals and added hospital beds unless a project fits an exception the Legislature wrote into the statute. Several of those exceptions are psychiatric hospitals, named one by one. Our reading is that the moratorium does not reach non-hospital SUD residential, withdrawal management or IRTS programs. DHS does hold separate authority, since July 1, 2025, to impose a temporary licensing moratorium on a program type that grows exceptionally fast, and its 2025 plan said none was in place or planned for 245G programs.
Will the city hear about a new residential program?
For some homes, yes. Starting July 1, 2026, DHS must give written notice to the affected municipality or other political subdivision within five working days after issuing a residential license for a permitted single-family residence, according to DHS’s 2026 implementation plans.
What about a second location?
Section 245G.03, subd. 3 requires notice to the commissioner before a change in location or residential capacity, and DHS bills an extra $500 a year for each satellite. A change of ownership needs a new license.
Staffing
What does a Minnesota LADC need?
According to the Board of Behavioral Health and Therapy’s LADC application, a bachelor’s degree, 270 clock hours of alcohol and drug counseling coursework, an 880-hour practicum and a passing written exam, with a $327 fee that includes the background check. A second route substitutes 2,000 hours of supervised post-degree practice.
Does a 245G program need a medical director?
Not under 245G.08, 245G.10 or 245G.11, which we checked. Withdrawal management is different. Chapter 245F requires a medical director for both program types, plus an LPN on site around the clock for clinically managed programs or an RN around the clock for medically monitored ones. In a 245G program, an RN develops the drug control policies and supervises delegated medication administration on site at least monthly.
Operations
What does Minnesota require around medication for opioid use disorder?
Education, mainly. Section 245G.04, subd. 3 requires opioid educational material covering “treatment options, including the use of a medication for opioid use disorder,” and 245A.242 requires 245G, 245F and IRTS or RCS programs to keep opiate antagonists on hand, with staff trained before direct contact. We found no provision requiring a non-OTP program to provide MOUD itself. Opioid treatment programs are licensed separately under 245G.22, so a program without one coordinates with a licensed OTP.
Where do incident reports go?
A death or serious injury goes to the Office of Ombudsman for Mental Health and Developmental Disabilities within 24 hours (Minn. Stat. 245.94, subd. 2a). Residential mental health license holders also report critical incidents, including suicide attempts, assaults and any event needing police, fire or ambulance response, to DHS within ten days on the commissioner’s form (245I.13). Maltreatment reporting laws apply on top of both.
How do I reach DHS licensing?
The Mental Health, Substance Use Disorder, and Children’s Residential Facility Licensing Unit answers at 651-431-6500 and dhs.mhcdlicensing@state.mn.us, according to the DHS SUD licensing page, which also links the DHS-7118 application.
Enforcement
What happens after a correction order?
A program can ask for reconsideration within 20 calendar days of receiving it (245A.06). A conditional license order has a ten-day reconsideration window. Fines under 245A.07 run $200 per occurrence of a health, safety or supervision violation, $100 for other violations, $1,000 for each maltreatment determination and $5,000 for serious maltreatment, as the 2025 statute reads, and DHS’s 2026 plans list no change to those amounts.
What does revocation mean in Minnesota?
Under 245A.04, subd. 7, a revoked license holder and each affiliated controlling individual generally cannot hold any 245A license for five years, and a denial blocks a new license for two, unless the commissioner finds substantial compliance and community need. Appeals of a suspension, revocation or fine are due within ten calendar days and go to a contested case hearing (245A.08). Details are in Minnesota License Reinstatement.
What’s Included and What Isn’t
What we help with in Minnesota
Timing the county notice against the DHS filing, building 245G, 245F and 245I.23 applications and policies, lining up the MDH building license, preparing an established 245G program for Joint Commission survey under 245G.031, and clinic certification under 245I.20.
What falls outside that scope
CMS, Medicare and Medicaid enrollment, billing and payer contracting are not part of our work, and we do not provide marketing. If you need either, we can point you to people who specialize in it.
Planning around Minnesota’s county notice and the new fees? Send us your timeline.
Author: A. Ant, CADC-II, Licensing & Accreditation Expert
Disclaimer: This content is provided for general informational purposes only and should not be construed as legal, regulatory, or licensing advice. Requirements change frequently. Consult qualified professionals for guidance specific to your situation.
Sources
- Minnesota DHS, Substance Use Disorder Treatment licensing (DHS-7118 application, licensing unit contacts): Substance use disorder treatment (checked October 11, 2026)
- Minnesota DHS, Behavioral Health Application Information Session: Application information session (checked October 11, 2026)
- Minnesota DHS, Form DHS-7118: SUD and withdrawal management license application (checked October 11, 2026)
- Minnesota DHS, Office of Inspector General: Office of Inspector General (checked October 11, 2026)
- Minnesota DHS bulletin, June 2, 2025 (licensing transfer to DCYF): DHS licensing changes effective June 18, 2025 (checked October 11, 2026)
- Minnesota DHS, SUD 2025 Legislative Changes Implementation Plan (fees, satellites, moratorium authority): SUD 2025 implementation plan (PDF) (checked October 11, 2026)
- Minnesota DHS, SUD Implementation Plan for 2026 Legislative Changes (attestation, suspension hearings): SUD 2026 implementation plan (PDF) (checked October 11, 2026)
- Minnesota DHS, IRTS-RCS Implementation Plan for 2026 Legislative Changes (municipal notice): IRTS-RCS 2026 implementation plan (PDF) (checked October 11, 2026)
- Minnesota DHS, MHC Implementation Plan for 2026 Legislative Changes (clinic fee in 2028): MHC 2026 implementation plan (PDF) (checked October 11, 2026)
- Minn. Stat. 245A.10 (fees): 245A.10 (checked October 11, 2026)
- Minn. Stat. ch. 245A, including 245A.03, 245A.05, 245A.06 and 245A.07: Chapter 245A full text (checked October 11, 2026)
- Minn. Stat. 245A.04 (decision clock, revocation bars): 245A.04 (checked October 11, 2026)
- Laws 2026, chapter 121, article 3, section 7 (245A.04, subd. 1(j) attestation): 2026 Minn. Laws ch. 121 (checked October 11, 2026)
- Minn. Stat. 245A.08 (hearings): 245A.08 (checked October 11, 2026)
- Minn. Stat. 245A.242 (opiate antagonists): 245A.242 (checked October 11, 2026)
- Minn. Stat. 254B.03, subd. 2 (county notice): 254B.03 (checked October 11, 2026)
- Minn. Stat. 254B.19 (ASAM levels): 254B.19 (checked October 11, 2026)
- Minn. Stat. 245G.01 and 245G.02 (definitions, exemptions): 245G.02 (checked October 11, 2026)
- Minn. Stat. 245G.03 (application, changes): 245G.03 (checked October 11, 2026)
- Minn. Stat. 245G.031 (alternative licensing inspections): 245G.031 (checked October 11, 2026)
- Minn. Stat. 245G.08, 245G.10 and 245G.11 (medical services, staffing, qualifications): 245G.11 (checked October 11, 2026)
- Minn. Stat. 245G.21 (residential requirements): 245G.21 (checked October 11, 2026)
- Minn. Stat. ch. 245G, including 245G.04: Chapter 245G (PDF) (checked October 11, 2026)
- Minn. Stat. ch. 245F (withdrawal management): Chapter 245F full text (checked October 11, 2026)
- Minn. Stat. 245I.23 (IRTS and RCS): 245I.23 (PDF) (checked October 11, 2026)
- Minn. Stat. 245I.13 (critical incidents): 245I.13 (checked October 11, 2026)
- Minn. Stat. 245.94 (Ombudsman reports): 245.94 (checked October 11, 2026)
- Office of Ombudsman for Mental Health and Developmental Disabilities: Reporting death or serious injury (checked October 11, 2026)
- Laws 2026, chapter 91 (Minn. Stat. 144.551 hospital moratorium): 2026 Minn. Laws ch. 91 (checked October 11, 2026)
- MDH, Hospital licensing: Hospitals (checked October 11, 2026)
- MDH, Supervised Living Facilities: Supervised living facilities (checked October 11, 2026)
- Board of Behavioral Health and Therapy: Board home page (checked October 11, 2026)
- Board of Behavioral Health and Therapy, LADC application (6.2025): LADC application (PDF) (checked October 11, 2026)
- Board of Behavioral Health and Therapy, temporary permit application (2.2025): Temporary permit application (PDF) (checked October 11, 2026)
- CARF, ASAM Level of Care Certification: Level of Care Certification (checked October 11, 2026)
- CARF provider search: Find a Provider (checked October 11, 2026)
- ASAM, Level of Care Certification: ASAM Level of Care Certification (checked October 11, 2026)
- U.S. Bureau of Labor Statistics, OEWS May 2025, SOC 21-1018: OEWS tables (checked October 11, 2026)