How to start an IOP or PHP in Plano, Frisco and Collin County

Collin County at a glance

Question	Collin County's answer
State license	HHSC chemical dependency treatment facility license for each site (26 TAC 564)
Medicaid service area	Collin County: Dallas service area. Denton County (west Frisco, The Colony, Little Elm): Tarrant service area
STAR plans	Dallas area: Molina, Parkland Community Health Plan, Wellpoint. Tarrant area: Aetna Better Health, Cook Children's Health Plan, Wellpoint
STAR+PLUS plans	Dallas area: Molina, Superior, UnitedHealthcare. Tarrant area: Molina, UnitedHealthcare
Local mental health authority and OSAR	LifePath Systems (Collin). On the Denton side, Recovery Resource Council is the OSAR
Zoning and certificate of occupancy	Each city: Plano, Frisco, McKinney, Allen and the rest; the county outside city limits
Local watch-outs	Which county an address is in; zoning approvals; mostly commercial payers; spring hail and winter freezes

Plans from HHSC's managed care service areas map (revised August 2026), as listed in our Dallas and Fort Worth guides; counties from HHSC's STAR+PLUS service area by county appendix. Check before you apply.

The state license

HHSC licenses Texas substance use programs as chemical dependency treatment facilities under Health and Safety Code chapter 464 and 26 TAC chapter 564; no Collin County city adds a treatment license. As of October 2026 the fee under 26 TAC 564.408 is $1,200 plus $125 for each additional site. In a county of fast-growing suburbs, many owners think about a second site early. Each one is its own address on the license, with its own city approvals and staffing.

The forms are in our Texas CDTF license guide, the proof list is 26 TAC 564 in plain English, and the full sequence is how to start an IOP or PHP in Texas.

Zoning and the certificate of occupancy, city by city

Unlike Houston, every major Collin County city has zoning, and each runs its own building office. Plano, Frisco, McKinney and Allen can classify a treatment program differently, so an answer from one city doesn't carry over to the next. Ask the city in writing, before you sign:

1. How does the zoning ordinance classify an outpatient substance use treatment program, and is it allowed at this address by right, or only with a specific use permit or other approval?
2. Does the existing certificate of occupancy cover our use and headcount?
3. What permits and inspections will the build-out need, and how long is review taking now?
4. What will the fire marshal check before we open?

Frisco's process, as an example. Frisco publishes a 2026 certificate of occupancy inspection guide. For a business that doesn't serve food, it lists an electrical or gas release inspection if the utilities aren't on yet, a fire inspection, and a building inspection for the certificate itself, scheduled with the city's Building Inspections Division. Build those inspections into your opening calendar; HHSC and your accreditor will want the certificate and the fire inspection on file.

Then lease with a contingency for zoning, the certificate and the HHSC license, with free rent during the build-out. Every site step is in our Texas IOP opening checklist.

Frisco and the county line

Frisco lies in both Collin and Denton counties; the city's own property tax page lists separate county taxing entities for each side. For a treatment program, that line matters twice:

• Medicaid service areas. HHSC puts Collin in the Dallas service area and Denton in the Tarrant service area, and a Medicaid member is enrolled in a plan for the area where they live. A Frisco program will see clients from both counties, so its Medicaid contracts need to fit both.
• The public system. LifePath Systems is the authority for Collin County; Denton County has its own, and Recovery Resource Council is the OSAR for Denton among 12 North Texas counties (its OSAR page). Know which one a client's county uses before you refer them for public services.

Check every candidate address against the appraisal district before you sign, and check every Medicaid client's county at intake.

Medicaid plans on each side

After the HHSC license, the program enrolls with TMHP and credentials with each plan; TMHP has said Medicaid SUD treatment may only be delivered in a licensed chemical dependency treatment facility (TMHP notice).

Program	Dallas service area (Collin)	Tarrant service area (Denton)
STAR	Molina, Parkland Community Health Plan, Wellpoint	Aetna Better Health, Cook Children's Health Plan, Wellpoint
STAR+PLUS	Molina, Superior, UnitedHealthcare	Molina, UnitedHealthcare
STAR Kids and CHIP	Check HHSC's current map	Check HHSC's current map

• The plans on both sides. Molina and UnitedHealthcare are in STAR+PLUS in both areas, and Wellpoint is in STAR in both. An adult program on the county line can start there: Molina (STAR and STAR+PLUS in Collin, STAR+PLUS in Denton), UnitedHealthcare (through Optum for behavioral health) and Wellpoint. See our Molina, UnitedHealthcare and Optum and Wellpoint guides.
• A Collin-only program can add Parkland and Superior; one serving Denton families can add Aetna Better Health and Cook Children's for STAR.
• Ask about in-lieu-of services for adult PHP and IOP before you build a budget on Medicaid (Texas Medicaid IOP and PHP guide).

The filing order is in our Texas Medicaid credentialing guide, and our credentialing service files and follows every application.

A commercial market

A Collin County IOP usually lives on commercial insurance, so the payer work starts with commercial facility contracts, not Medicaid. Practical steps:

• Pick commercial targets by what your clients carry. Large employers' plans may be self-funded and administered by a national carrier, and many carve behavioral health out to a separate company. The card tells you who to contract with; our sister site explains behavioral health carve-outs. Which contracts to pursue first, and how facility contracts work, is in insurance contracts for treatment centers; the rate conversation is in negotiating insurance rates.
• Verify before every admission. Deductibles and out-of-pocket maximums decide what a client owes; run benefits and authorizations before day one (VOB checklist, prior authorization guide).
• Schedule for working adults and students. An evening track serves commuters; an adolescent track has to fit the school day. Our IOP schedule template shows the layouts.

LifePath and the local landscape

Earn referrals with fast assessments and honest level-of-care calls. Paying or giving anything of value for referrals is illegal under the Texas Patient Solicitation Act and federal EKRA (patient brokering laws, explained). We never arrange referrals.

• LifePath Systems, based in McKinney, is Collin County's local mental health authority and its Outreach, Screening, Assessment and Referral (OSAR) program, which screens people and links them to state-funded substance use treatment (HHSC OSAR page). Agree how crisis hand-offs work, and decide whether you'll take state-funded clients.
• Hospitals. The large systems' Plano, Frisco and McKinney hospitals discharge patients who need a step-down level of care. Their case managers want your levels of care, plans and assessment times.
• Therapists, psychiatrists, EAPs and school counselors refer people who need more structure than weekly therapy. A one-page sheet with your schedule, levels of care and accepted plans works better than lunches.
• Courts and probation. Drug courts operate under Government Code chapter 123; reports go only with consent that meets 42 CFR Part 2.
• Severe weather. North Texas programs plan for spring hail and tornado warnings and winter freezes; Comply's emergency operations plan guide covers the closure and telehealth plan.

Legal marketing in a competitive suburban market, including paid search and directories, is in how to market a treatment center.

The order of work in Collin County

Step	Collin County detail	Typical time in our roadmap
1. Program model and budget	Commercial-first payer mix; adult, adolescent or both. Use the break-even calculator.	1–2 months
2. Site search	County (Collin or Denton), city zoning, the four questions above	about 30 days, longer if a zoning approval is needed
3. Lease with a contingency	Out if zoning, the certificate or the license fails; free rent for the build-out	about 3 weeks
4. Build-out	Permits from the city with jurisdiction	about 6 weeks
5. Certificate of occupancy and fire inspection	Utility release, fire and building inspections (Frisco's sequence)	about 3 weeks
6. HHSC license and inspection	File when the site, policies and staff files are nearly ready	about 2–3 months
7. Facility contracts	Commercial plans first; TMHP and the Medicaid plans for your side of the line	about 90 days each

The times are planning figures from our own launch roadmap, not promises. What it costs is in how much it costs to start an IOP.

Or book a free 30-minute call and tell us the address you're looking at.

Questions

Is Frisco in the Dallas or Tarrant Medicaid service area?

Both, depending on the address. Frisco lies in Collin County, which HHSC puts in the Dallas service area, and Denton County, which is in the Tarrant service area. Medicaid members are enrolled by where they live, so a Frisco program usually serves members of both areas' plans.

Which Medicaid plans work on both sides of the Collin–Denton line?

Molina and UnitedHealthcare are STAR+PLUS plans in both the Dallas and Tarrant service areas, and Wellpoint is a STAR plan in both. Molina is also a STAR plan on the Collin side. Confirm on HHSC's current map.

Who is the local mental health authority in Collin County?

LifePath Systems, based in McKinney, which also runs Collin County's OSAR program. On the Denton side, Recovery Resource Council is the OSAR.

Do Plano and Frisco require a city license for an IOP?

No treatment license: HHSC licenses the program. The city's part is zoning, building permits, the certificate of occupancy and the fire inspection. Each city has its own rules, so ask the one with jurisdiction.

How long does it take to open an IOP in Collin County?

Plan on roughly nine to twelve months to a full caseload of insured clients, longer if your site needs a zoning approval. Commercial contracts are usually the long pole.

Other Texas cities: Dallas, Fort Worth, The Woodlands and Conroe, and every city guide on opening a program in Texas, by city.

Cima Consulting isn't a law or accounting firm. HHSC, the cities and each health plan make their own decisions; we don't guarantee approvals, rates or dates. We aren't affiliated with any health plan named here.

Sources

• HHSC, Managed Care Service Areas map (revised August 2026): hhs.texas.gov; STAR+PLUS service area by county: fhb.hhs.texas.gov
• City of Frisco, CO Inspection Guide 2026: friscotexas.gov; Building Inspections Division: friscotexas.gov; property tax rate (Collin and Denton county entities): friscotexas.gov
• HHSC OSAR (LifePath Systems, McKinney, Region 3): hhs.texas.gov; Recovery Resource Council, OSAR: recoverycouncil.org
• TMHP, substance use disorder benefit changes: tmhp.com
• Texas Health and Safety Code chapter 464: statutes.capitol.texas.gov; 26 TAC 564.408: justia.com
• Texas Occupations Code chapter 102: statutes.capitol.texas.gov; EKRA: law.cornell.edu; Government Code chapter 123: statutes.capitol.texas.gov; 42 CFR Part 2: ecfr.gov