Alpass Wellness describes long regulatory delays and heavy startup costs opening La Plata treatment center

At the Jan. 24 Southern Maryland Delegation meeting, Sean Smith, founder and chief executive officer of Alpass Wellness, described lengthy regulatory steps, staffing requirements and federal certification delays that he said made opening the La Plata treatment center costly and difficult.

Smith said Alpass operates a 108-bed facility licensed by state authorities and the Joint Commission that opened in May 2024. He told the delegation the facility has three units currently open, employs slightly more than 130 people and was running a patient census “a little north of 40” at the time of the presentation. He said Alpass treated a little more than 350 patients in 2024 and anticipates treating over 850 patients in 2025, and that at stabilization the center would treat about 1,200 patients a year.

Smith outlined a multi-step timeline for the state and federal approvals. He said Alpass applied for a certificate of need in March 2022 and received approval in June 2023 (a roughly 16-month process), and that Behavioral Health Administration licensing required the provider to be fully staffed before opening units. He said being staffed months before revenue began created a high monthly burn rate — roughly $1,000,000 per month — and that between November (when staff were in place) and May the program carried those staffing expenses without offsetting revenue.

Smith also described difficulty obtaining a DEA “224” certification that would permit certain medication-assisted detoxification services. He said the company has not received the 224 certification and that a letter from Congressman Steny Hoyer to the DEA, written in March 2024, had not yielded a response; he said he sought a temporary workaround with DEA staff while the agency continued to pursue final certification. Smith said the combined regulatory and staffing delays cost the company “north of $7,000,000” over six months.

Smith urged delegates to note these challenges as the state considers new providers and licensing processes. He said Alpass has research partnerships (including with the University of Pennsylvania) and is in-network with CareFirst and TRICARE for veterans services, and that a planned third-floor veterans unit would provide targeted programming for military members.

Delegate Patterson thanked Smith and suggested a private follow-up meeting with delegation members to discuss potential state and federal support. No formal action was taken on Jan. 24; Smith asked principally to raise awareness about regulatory barriers for new treatment providers.

Ending: Delegation members encouraged to meet privately with Alpass leadership; Smith requested the delegates’ assistance in identifying regulatory or legislative fixes that would reduce startup risk for future providers.