Introduction
If you’re looking to open a PRP, PHP, or IOP program in Maryland, there’s finally some good news. As of July 1, 2025, the Maryland Department of Health (MDH) has partially lifted its behavioral health licensing moratorium, originally implemented in July 2024. But the update comes with critical details: the moratorium is only lifted for certain counties—while others remain under a strict pause.
In this post, we break down where the moratorium still applies, where it’s been lifted, and how you can move forward with licensing your behavioral health program.
Why the Maryland Behavioral Health Licensing Moratorium Was Implemented
In July 2024, Maryland imposed a moratorium on new licenses for:
- Psychiatric Rehabilitation Programs (PRP)
- PRP Health Home
- Partial Hospitalization Programs (PHP) – ASAM Level 2.5
- Intensive Outpatient Programs (IOP) – ASAM Level 2.1
The goal was to address concerns about fraud, waste, and abuse while improving compliance and care quality within Maryland’s behavioral health system.
In January 2025, the moratorium was extended—and now, as of July 2025, it’s been partially lifted.
Maryland Counties Where the Moratorium Has Been Lifted
The Maryland behavioral health licensing moratorium is now lifted for providers located in the following counties:
- Allegany
- Calvert
- Caroline
- Cecil
- Charles
- Dorchester
- Garrett
- Kent
- Queen Anne’s
- Somerset
- St. Mary’s
- Talbot
- Wicomico
- Worcester
If your facility is located in one of these counties, you may now apply for new PRP, PHP, or IOP licenses and submit Medicaid enrollment applications.
Read the official MDH press release
Maryland Counties Where the Moratorium Still Applies
The moratorium has been extended for another six months in the following high-density counties:
- Anne Arundel County
- Baltimore City
- Baltimore County
- Carroll County
- Frederick County
- Harford County
- Howard County
- Montgomery County
- Prince George’s County
- Washington County
Providers in these areas cannot currently apply for new Medicaid enrollment for PRP, PHP, or IOP services.
Read the full transmittal (PT 89-25) here
What This Means for Behavioral Health Startups in Maryland
This update is a crucial opportunity for behavioral health entrepreneurs in Maryland’s rural counties. If your facility is located in a region where the moratorium has been lifted, now is the time to:
- Prepare your licensure applications
- Start the Medicaid enrollment process
- Ensure compliance with COMAR and BHA regulations
For providers in restricted counties, it’s just as important to plan ahead so you’re ready to launch once the moratorium is eventually lifted statewide.
How Revive BHS Can Help
At Revive BHS, we specialize in helping behavioral health providers:
- Navigate Maryland’s complex regulatory landscape
- Build compliant PRP, PHP, and IOP programs from the ground up
- Manage Medicaid enrollment, policy creation, and readiness reviews
Whether you’re ready to act now or preparing for the future, we’ll guide you through every step of the process.
Contact us today to learn more