How to start a behavioral health clinic in Arizona
Arizona requires a Health care institution license — Outpatient Treatment Center (behavioral health services) from Arizona Department of Health Services — Division of Public Health Licensing Services, Bureau of Medical Facilities Licensing to operate a behavioral health clinic. Fee: $50 non-refundable application fee plus a licensing fee under A.A.C. R9-10-106. A behavioral health facility with no licensed capacity pays $375; one to 59 beds pays $375 plus $94 per bed (higher tiers for larger capacity). An outpatient treatment center that is not a behavioral health facility pays $365 with no licensed capacity. Fees are nonrefundable.
- License required
- YesHealth care institution license — Outpatient Treatment Center (behavioral health services)
- Application fee
- See details
- Processing time
- —
- Mental health counseling
- $27.79per 15 min · $111.16/hr
- Organizations in the state
- 3,755NPPES, Sep 13, 2026
On this page
Arizona behavioral health clinic license
Arizona requires a Health care institution license — Outpatient Treatment Center (behavioral health services) from Arizona Department of Health Services — Division of Public Health Licensing Services, Bureau of Medical Facilities Licensing to operate a behavioral health clinic. Fee: $50 non-refundable application fee plus a licensing fee under A.A.C. R9-10-106. A behavioral health facility with no licensed capacity pays $375; one to 59 beds pays $375 plus $94 per bed (higher tiers for larger capacity). An outpatient treatment center that is not a behavioral health facility pays $365 with no licensed capacity. Fees are nonrefundable.
- License required
- Yes
- License
- Health care institution license — Outpatient Treatment Center (behavioral health services)
- Issuing agency
- Arizona Department of Health Services — Division of Public Health Licensing Services, Bureau of Medical Facilities Licensing
- Fee
- $50 non-refundable application fee plus a licensing fee under A.A.C. R9-10-106. A behavioral health facility with no licensed capacity pays $375; one to 59 beds pays $375 plus $94 per bed (higher tiers for larger capacity). An outpatient treatment center that is not a behavioral health facility pays $365 with no licensed capacity. Fees are nonrefundable.
- Renewal
- Licensees pay annual health care institution licensing fees under R9-10-106 (timing in R9-10-107).
- Accreditation
- Optional; the application asks whether the institution is accredited by a nationally recognized accrediting organization.
- Regulation
- A.R.S. Title 36, Chapter 4; A.A.C. R9-10-106 (fees) and R9-10 Article 10 (outpatient treatment centers)
Steps to get licensed in Arizona
In order, as the licensing agency describes the process.
- Choose the outpatient treatment center class/subclass listed in A.A.C. R9-10-102 and Article 10
- Complete the ADHS Outpatient Treatment Center application, including scope of services listing the behavioral health services offered and hours of operation
- Attach ownership documents (articles of incorporation or partnership papers, lease if leased) and any colocation or collaborating-center agreements
- Pay the $50 application fee and licensing fee using the Application & License Fee Remittance Form
- Respond to any ADHS supplemental requests for information (R9-10-108) and complete the licensing inspection
What you need to submit
5 documents listed by the licensing agency.
Enrolling as a Arizona Medicaid provider
- Program
- Arizona Health Care Cost Containment System (AHCCCS)
- Enrollment portal
- AHCCCS Provider Enrollment Portal (APEP)
- Fiscal agent
- None — AHCCCS runs provider enrollment and its own claims system in-house
- Application fee
- AHCCCS charges the enrollment fee to non-individual provider types at enrollment and can charge it again at revalidation; AHCCCS lists $750 for calendar year 2026, matching Medicare's fee. Federal rule (42 CFR 455.460): the state must collect the CMS application fee from institutional providers that are newly enrolling or re-enrolling; individual physicians and non-physician practitioners are exempt, as are providers already enrolled in (or that already paid the fee to) Medicare or another state's Medicaid/CHIP. CMS set the fee at $750 for calendar year 2026.
- Fingerprinting
- AHCCCS requires the fingerprint-based criminal background check (FCBC) only for high-risk provider types. Federal rule (42 CFR 455.434, 455.450(c)): providers the state places in the 'high' categorical risk level, and anyone owning 5% or more of such a provider, must submit fingerprints for a criminal background check.
- Site visit
- AHCCCS applies site visits to moderate- and high-risk provider types, at enrollment and at revalidation. Federal rule (42 CFR 455.432, 455.450(b)-(c)): the state must do site visits before and after enrollment for providers in the 'moderate' or 'high' risk levels, and any enrolled provider must allow unannounced on-site inspections.
- Revalidation
- AHCCCS requires revalidation every four years (stricter than the federal five) and may call for off-cycle revalidation; providers get 90 days from notice or their enrollment is terminated. Federal rule (42 CFR 455.414): every enrolled provider must be revalidated at least once every 5 years.
Does Arizona require a certificate of need?
- CON program
- No
Arizona wage floor
- State minimum wage
- $15.15 an hour
- Effective
- 2026-01-01
- Scheduled increases
- Rises to $15.65 on 2027-01-01 (annual CPI adjustment announced by the Industrial Commission).
- HCBS 80/20 rule
- Federal baseline: 42 CFR 441.302(k) requires the state to show that each provider spends at least 80% of Medicaid payments for homemaker, home health aide and personal care services under 1915(c) waivers on direct care worker pay and benefits. Compliance starts 2030-07-09 (for managed care, the first rating period starting on or after that date); annual payment-adequacy reporting under 441.311(e) starts 2028-07-09. A state may set a lower share for state-defined small providers and exempt providers facing hardship, each only through a public notice-and-comment process. The eCFR text has not changed since 2024-07-09. No state-published 80/20 implementation step (small-provider criteria, hardship exemption or reporting guidance) was found for this state in the official sources reviewed.
Arizona market size
Counts from federal public files: NPPES (active organization NPIs), CMS Care Compare and CMS Medicaid enrollment.
- Community/behavioral health agencies and mental health clinics — active organization NPIs (NPPES)
- 3,755 (as of Sep 13, 2026)
- Total Medicaid and CHIP enrollment (latest reported month)
- 1,611,827 (as of Jun 1, 2026)
What Arizona Medicaid pays
Behavioral health: published Arizona fee-for-service rates, each linked to its source.
| Service | Code | Arizona rate | Per hour | Rank |
|---|---|---|---|---|
| Mental health counselingLicensed mental health clinician | H0004 | $27.79per 15 min | $111.16 | — |
| Outpatient psychotherapy and diagnostic evaluationLicensed mental health clinician | 90834 | $71.35per 45 min | — | — |
| Mental health assessment (non-physician)Physician or licensed psychologist | H0001 | $33.89 | — | 25 of 27 |
| Skills training and developmentPhysician or licensed psychologist | H2014 | $18.33per 15 min | $73.32 | 10 of 33 |
| Therapeutic behavioral servicesPhysician or licensed psychologist | H2019 | $4.88per 15 min | $19.52 | 27 of 28 |
Arizona HCBS waivers
Medicaid home and community-based services programs that may pay for this service.
- Arizona Long Term Care System (ALTCS) — AHCCCS Section 1115 demonstration (1115)
Frequently asked questions
Do you need a license to start a behavioral health clinic in Arizona?
Arizona requires a Health care institution license — Outpatient Treatment Center (behavioral health services) from Arizona Department of Health Services — Division of Public Health Licensing Services, Bureau of Medical Facilities Licensing to operate a behavioral health clinic. Fee: $50 non-refundable application fee plus a licensing fee under A.A.C. R9-10-106. A behavioral health facility with no licensed capacity pays $375; one to 59 beds pays $375 plus $94 per bed (higher tiers for larger capacity). An outpatient treatment center that is not a behavioral health facility pays $365 with no licensed capacity. Fees are nonrefundable.
How much does a behavioral health clinic license cost in Arizona?
$50 non-refundable application fee plus a licensing fee under A.A.C. R9-10-106. A behavioral health facility with no licensed capacity pays $375; one to 59 beds pays $375 plus $94 per bed (higher tiers for larger capacity). An outpatient treatment center that is not a behavioral health facility pays $365 with no licensed capacity. Fees are nonrefundable. Renewal: Licensees pay annual health care institution licensing fees under R9-10-106 (timing in R9-10-107)..
Does Arizona require a certificate of need for a behavioral health clinic?
No. Arizona has no certificate of need program.
How do you become a Medicaid provider in Arizona?
Enroll through AHCCCS Provider Enrollment Portal (APEP) (https://www.azahcccs.gov/APEP), run by None — AHCCCS runs provider enrollment and its own claims system in-house.
What does Arizona Medicaid pay a behavioral health clinic?
Arizona Medicaid pays $27.79 per 15 min for mental health counseling, effective Jan 1, 2020.