State licensing is required for psychiatric hospitals/units under the Michigan Mental Health Code.

To begin operation of a new psychiatric hospital/unit, all of the following steps must be completed:

1. Complete state licensure application LARA-SLACR-101 and email completed application to LARA-BCHS-NLTCSLS@michigan.gov

2. Payment:  For electronic payments, visit Initial Licensure Payment. There is a 2% processing fee for electronic payments.

Fees for New Licensure
Psychiatric Hospital/Unit                         $500 plus $10/bed

3. You must have approval from the below state agencies.  If you have not already done so, contact the following state agencies to initiate the process for their approval.

To make changes to an existing licensed facility including relocation, facility and/or corporate name change, change of ownership, bed capacity change(s), and/or bed designation change (s), complete the following steps below. To report a change in administrator, please report the change to Bureau of Survey and Certification.

1. Complete the state licensure application and change request form LARA-SLACR-101

2. Fees/Payment:  To make your payment electronically for changes to an existing license, visit Licensure Change Request Payments. There is a 2% processing fee for credit card payments or $0.15 processing fee for electronic check payments. 

Fees for Changes to an Existing License
► License (facility/DBA) name change      $500
► CHOW or corporate name change        $500
► Relocation                                                     $500
► Bed Designation Change                         $500
► Bed Capacity Decrease                             No Fee
► Bed Capacity Increase                               $500 plus $10/added beds

Other state agencies may require approval prior to licensing actions. Contact the following state agencies to determine whether their approval is required.

All State Licenses must be renewed annually.  Annual renewal letters and invoices are sent in June of each year. You may also sign up to receive these and all notifications/alerts at Non-Long Term Care State Licensing Alerts.  Licenses cannot be renewed prior to June 1st or prior to receiving the renewal notices.

License renewals must be paid online no later than July 31st at eLicense (michigan.gov).

Note: A license is required by MCL 333.20141(1) to establish or maintain and operate a health facility or agency. A provider’s non-renewal of a license by September 1st is not considered as a refusal to renew by the department under MCL 333.20165.  All licenses must be renewed, in accordance with Administrative Rule 325.45113. All licenses non-renewed by a licensee will receive a notice on or after September 1st that the license is closed and this notice will be posted to the license on the department web page (State Licensing).

Fees for Renewal
Psychiatric Hospital/Unit $500 plus $10/bed

In accordance with R 325.45169, you must notify the department in writing at least 30 days prior to your proposed closure date.  The required closure plan must be sent to LARA-BCHS-NLTCSLS@michigan.gov and the closure plan must meet all of the requirements as provided for in R 325.45169, which the details can be found:  Administrative Rules (under “Licensing Health Facilities or Agencies") Please review the Closure Plan Checklist to aid you in this process. 

Psychiatric Notification of Death - Effective March 24, 2021, MCL 330.1720 and 330.1721 require state licensed psychiatric hospitals and units to report to the Department of Health and Human Services (DHHS) Office of Recipient Rights (ORR) all deaths of mental health care recipients occurring in a psychiatric hospital or psychiatric unit and within 48 hours of discharge, as well as the cause of death, if known. DHHS must investigate the deaths of mental health care recipients that resulted from suicide or unknown causes. Please use the new reporting form (MDHHS-5949) that providers will be responsible to complete and email directly to DHHS-ORR at MDHHS-5949.dotx (live.com) or by FAX to 248-348-9963.  Should you have questions and/or need additional information, please contact:

MDHHS-ORR at MDHHS-RecipientRights@michigan.gov or 800-854-9090 or visit the MDHHS-ORR website at michigan.gov/recipientrights.

Non-Long Term Care State Licensing Section
Phone: 1-833-757-7308
Email: LARA-BCHS-NLTCSLS@michigan.gov