SUPPORTING INDIVIDUALS WITH MENTAL HEALTH AND BEHAVIORAL NEEDS THROUGH INTEGRATED, COMMUNITY-BASED INTERVENTIONS

Behavioral Health Services in Arizona focus on improving emotional, psychological, and behavioral well-being for individuals with developmental disabilities, chronic conditions, or mental health diagnoses. These services are authorized under Arizona’s Medicaid system (AHCCCS) and provided through the Arizona Long Term Care System (ALTCS) and the Division of Developmental Disabilities (DDD) under HCBS waivers. The goal is to help individuals live stable, empowered lives in the least restrictive environment possible.

1. GOVERNING AGENCIES

Agency: Arizona Health Care Cost Containment System (AHCCCS)
Role: Oversees Medicaid and behavioral health service reimbursements

Agency: Arizona Department of Economic Security (DES) – Division of Developmental Disabilities (DDD)
Role: Manages Qualified Vendor contracts and coordinates behavioral supports for individuals with developmental disabilities

Agency: Arizona Department of Health Services (ADHS) – Division of Licensing Services
Role: Licenses behavioral health outpatient treatment centers and agencies

Agency: Centers for Medicare & Medicaid Services (CMS)
Role: Ensures HCBS services meet federal quality and community integration standards

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2. BEHAVIORAL HEALTH SERVICE OVERVIEW

Behavioral Health Services support individuals with emotional, behavioral, or psychiatric challenges. Services are individualized, evidence-based, and may be delivered in a home, clinic, school, or community setting.

Approved providers may deliver:

• Behavioral assessments and treatment planning
• Counseling and psychotherapy (individual, group, or family)
• Positive behavior support interventions
• Crisis intervention and stabilization
• Skill-building in emotional regulation, communication, and coping
• Psychiatric evaluations and medication management (if licensed for clinical services)
• Documentation and coordination with care teams and case managers

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3. LICENSING & PROVIDER APPROVAL REQUIREMENTS

Prerequisites:

• Register your business with the Arizona Corporation Commission
• Obtain EIN from the IRS and NPI (Type 2)
• Obtain an Outpatient Behavioral Health Facility License through the Arizona Department of Health Services (ADHS)
• Apply through the Qualified Vendor Application and Directory System (QVADS) (if serving DDD members)
• Maintain liability and professional malpractice insurance
• Hire licensed behavioral health professionals (e.g., LPC, LCSW, BCBA, Psychologist)

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4. LICENSING & ENROLLMENT PROCESS

Step 1: ADHS Behavioral Health Facility Licensing

• Submit application for an Outpatient Behavioral Health Facility or Agency License
• Include staffing plan, clinical supervision protocols, and safety policies
• Prepare for ADHS survey and inspection

Step 2: AHCCCS Medicaid Enrollment

• Register with AHCCCS as a behavioral health provider
• Submit license, NPI, and required documentation
• Configure billing codes for counseling, behavior analysis, and related services

Step 3 (If applicable): QVADS Application

• Apply through QVADS if serving individuals under the DDD Waiver
• Submit service descriptions, policies, credentialing info, and documentation templates

5. REQUIRED DOCUMENTATION

• Articles of Incorporation or Business License
• IRS EIN Letter
• NPI confirmation
• ADHS Behavioral Health Facility License
• AHCCCS enrollment approval
• QVADS registration (if serving DDD)

Policy & Procedure Manual must include:

• Clinical intake, risk screening, and service planning
• Behavioral support plans and data collection tools
• Emergency response and de-escalation protocols
• Client rights, informed consent, and privacy practices (HIPAA)
• Documentation, billing, and progress note templates
• Staff credentialing, supervision, and continuing education logs
• Crisis management and incident reporting procedures
• Cultural competency and trauma-informed care policies

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6. STAFFING REQUIREMENTS

Role: Clinical Director / Behavioral Health Supervisor
Requirements: Must hold a valid Arizona license (LCSW, LPC, LMFT, Psychologist)

Role: Behavioral Health Technician / Counselor / BCBA
Requirements:

• Minimum education and supervised experience required by ADHS
• Licensure or certification when applicable (BCBA, LAC, etc.)
• Article 9 (required for DDD services)

Training Requirements for All Staff:

• Crisis intervention and de-escalation
• Confidentiality, HIPAA, and client rights
• Behavioral documentation and incident reporting
• Suicide prevention, abuse reporting, and ethics
• Annual refreshers on clinical and regulatory compliance

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7. MEDICAID WAIVER SERVICES

Behavioral Health Services are authorized under the following Medicaid Waivers:

• ALTCS – Division of Developmental Disabilities (DDD) Waiver
• ALTCS – Elderly and Physically Disabled (EPD) Waiver
• General Mental Health and Substance Use Services (via AHCCCS RBHA system)

Approved providers may deliver:

• Counseling and therapy services
• Behavioral intervention and crisis stabilization
• Psychiatric services (if clinically licensed)
• Coordination with support coordinators, families, and school teams

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8. TIMELINE TO LAUNCH

Phase: Business Formation
Timeline: 1–2 weeks

Phase: ADHS Licensing and Inspection
Timeline: 60–90 days

Phase: QVADS Application (if DDD)
Timeline: 45–60 days

Phase: AHCCCS Medicaid Enrollment
Timeline: 45–60 days

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9. CONTACT INFORMATION

Arizona Department of Health Services (ADHS) – Behavioral Health Licensing
Phone: (602) 364-3030
Website: https://www.azdhs.gov

Arizona Health Care Cost Containment System (AHCCCS)
Email: ProviderRegistration@azahcccs.gov
Website: https://www.azahcccs.gov

Arizona Department of Economic Security (DES) – Division of Developmental Disabilities (DDD)
Email: DDDProviderRegistration@azdes.gov
Website: https://des.az.gov/services/disabilities/developmental-disabilities

Qualified Vendor Application Portal (QVADS): https://vendorhub.azdes.gov

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10. SCOPE OF WORK

• Business registration (LLC, EIN, NPI)
• ADHS licensing application and survey preparation
• AHCCCS enrollment and billing configuration
• Development of behavioral health policy & procedure manual
• Clinical intake, therapy logs, and crisis documentation templates
• Website, domain, and email setup
• Staff credentialing trackers and supervision logs
• Client intake packet, consent forms, and behavior plans
• Incident reporting systems and audit preparation tools
• Referral networking with schools, families, and support coordinators

WAIVER CONSULTING GROUP'S START-UP ASSISTANCE SERVICE — ARIZONA BEHAVIORAL HEALTH SERVICES PROVIDER

We help behavioral health professionals and organizations launch fully licensed, Medicaid-enrolled agencies under Arizona’s ALTCS and HCBS programs.