What Licenses Do You Need to Open a Ketamine Clinic? 2024 Update
This blog was originally published March 11, 2021
Latest update: October 16, 2023
In this blog post you will learn about the necessary licensing and permits needed to open a ketamine infusion clinic. BUT need to check if there are different rules in the state and city you are opening your clinic in. What we are sharing here is what we did in southern California to open our ketamine clinic.
You are likely used to working at a hospital or clinic, where you were told by an administrator what needed certain licenses to practice. Now as the business owner, you get to know first hand what you need. Since we want you to do this right we will give you guidance on this. But it’s not the end all.
Remember: talk with an accountant and business lawyer in the area you want to open your clinic to see if there are special nuances to starting a medical clinic.
The Obvious Medically Related Licenses You Need And Probably Already Have
Fundamentally you are opening a private practice medical clinic. In other words, this is no different than opening a private practice clinic or medical spa. At a baseline you probably already have the following:
An active current medical license in the state you are opening your ketamine infusion clinic
A National Provider Identifier (NPI)
A DEA license - BUT!! Depending on your work location, you may need to get a new DEA license for your clinic location. When ordering scheduled drugs, the address associated with your DEA licenses must match your clinic. Therefore, depending on your current work situation you may need to get a second DEA license associated with your clinic location.
The Licenses & Permits You May Be Less Familiar With
Once you have incorporated or chosen a particular type of business entity, found a location, and opened a business bank account you can then work on applying for the following:
A City business license. Check with the city hall of the city your clinic is located to find out the requirements, as there can be variation from city to city.
A Fictitious Name Permit (FNP) through your state’s medical board. You can skip applying for this however if you are going to do the following:
Only practice under your name
Your professional corporation (i.e. business entity) is your name
If this is going to be a solo business (no partners nor group, just you buddy)
All public communications (i.e. website, ads, signs, etc) are under your name.
A Fictitious business name or Doing Business As(DBA) for your county/ city - check with your city and county if this is required (this was required where our clinic is located).
An Employer Identification Number (EIN) - you’re probably already familiar with this, but as an employee of a hospital or clinic. Now you are obtaining one for your clinic.
Change Is Potentially On The Horizon: Ketamine Clinics in Utah
Most states lack laws specifically aimed at ketamine clinics, but Utah may set a precedent that changes that. SB 197, termed as "Anesthesia Amendments," has been passed unanimously by both the state senate and the house. It requires those clinics using ketamine for non-anesthetic purposes to have one or more individuals with advanced airway training and specialized knowledge on site.
What does this mean in practice? This law states that any clinic administering ketamine, even for non-anesthetic purposes, must have an advanced airway trained individual on-site instead of having one in each room that is administering ketamine. This translates to continuing to provide advanced care but also support accessibility to patients by keeping costs of running a ketamine clinic down.
How Does Utah’s Law Affect Your Ketamine Clinic?
You might be thinking, “Wow that law makes running a ketamine clinic more affordable, it's a good law” or “Well I’m not in Utah nor does this effect licensing so I don’t care!”. Whether or not you are in Utah or care about your clinic’s expenses, the existence of this law underscores the increasing recognition of ketamine clinics. This hints at potential future regulation and could very well influence other states' future regulations. Remember, as the size of the ketamine industry grows, so will the scrutiny leading to potential additional licensing in the future. Stay informed and prepare to adapt to the evolving landscape of ketamine infusion clinics.
If you want to explore this topic more, check out Utah Ketamine Clinic Update blog by the law firm Harris Bricken. We have no financial relationship with them, we simply appreciate their informative blog!
As of this 2024, update we have not seen any major repercussions from this Utah law in California.
Do Your Own Homework: Consult With The Specialists
Consult a business lawyer and business accountant familiar with opening medical clinics, as there is no standardization regarding opening medical clinics within a particular state, and there is even variation amongst counties for business permit requirements! Do your homework and work with professionals who understand the evolving nature of ketamine clinic specific laws. The intent of the blog post was to give you a basic understanding of what you need. Let this be a starting place from which you can start doing further research and be more prepared to talk with the professionals.
Ready to take the next step? Join our email list and be notified about the next free webinar and open registration for Ketamine StartUp.
Related Questions
How do the licensing and permit requirements differ for ketamine infusion clinics when compared to other types of medical practices?
When you are opening a ketamine infusion practice you are essentially opening a private practice. As of this writing, there are no different requirements for opening a ketamine clinic as compared to other types of medical practices. Therefore, as long as you work with a business attorney familiar with opening medical practices in your state, you should be fine in meeting all necessary requirements.
Are there any specific permits or certifications required for the administration of ketamine infusions in a clinical setting for mood and chronic pain disorders?
Currently there are not. We are in the early phases of ketamine infusion therapy for the treatment of mood and pain disorders. Over time, when there is a wider acceptance of this treatment amongst the medical community there may be a drive to create certification. That being said, taking our course (Ketamine StartUp 101) you will receive a certificate - which at times has been helpful for students in obtaining malpractice insurance.
If you found this blog helpful, check out these other ones:
Does A Licensed Physician Need To Be Present During Ketamine Infusions?
Find out what the regulations and considerations are in determining if a physician is required to be present during a ketamine infusion here at our blog.
Do Insurances Reimburse Ketamine Infusions?
Ketamine infusions are an effective treatment for mood and pain disorders. Unfortunately, reimbursements for these treatments can be quite a challenge. Read our blog to find out whether ketamine infusions are covered by insurances
Should I Offer Other Services Besides Ketamine Infusions?
When starting a ketamine clinic, you may not have many patients in the beginning. So should you expand what you offer to get more patients? Find out what we recommend at our blog!
Find out the necessary licenses and permits that you'll need to start your own ketamine infusion clinic here at our blog.
Discover 3 essential questions every EM physician should ask before starting a ketamine clinic to help guide your decision and next steps.