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New Ohio Recovery Housing Rules Take Effect January 1, 2025

Client Alert

Ohio is implementing new regulations to enhance accountability and quality in recovery housing. These changes, effective January 1, 2025, will impact certified community behavioral health providers and their referral practices.

The following text is an excerpt from the Ohio Department of Mental Health and Addiction Services, published on December 31, 2024. 

"In accordance with Ohio law (R.C. 5119.394), OhioMHAS has established a registry of recovery housing residences that are accredited (or its equivalent) by certain accreditation organizations or, if newer (in operation for not more than 18 months), are actively engaged in efforts to obtain such accreditation. Beginning Jan. 1, 2025, certified community behavioral health providers are prohibited from referring clients to a recovery housing residence that is not on the statewide recovery housing residence registry at the time of the referral."

Read the full update here.

If your organization needs assistance navigating the new recovery housing rules or ensuring compliance with Ohio’s updated regulations, please contact Member Daphne Kackloudis at dlkackloudis@bmdllc.com.


CMS Releases CY 2026 Medicare Physician Fee Schedule Final Rule with Key Payment and Telehealth Updates

CMS issued the CY 2026 Medicare Physician Fee Schedule Final Rule on October 31, 2025, with changes effective January 1, 2026. The Final Rule includes increases to the conversion factor, a new efficiency adjustment, updates to practice expense methodology, permanent telehealth policy changes, revised payment for skin substitutes, expanded rules for Part B drugs and biologicals, enhanced policies for Rural Health Clinics and Federally Qualified Health Centers, and new care management and behavioral health services.

Ohio Department of Medicaid Updates: Key Changes to Physician Reimbursement Rates in Early Parenthood

The Ohio Department of Medicaid has proposed amending Ohio Administrative Code Rule related to covered Medicaid reimbursements for physicians. Beginning on January 1, 2026, they are proposing an increase to rates for prenatal care, childbirth, and infant care and provider visits.

Name, Image, and Likeness Agreements in Healthcare

For example, some healthcare providers have begun to utilize "Name, Image, and Likeness" agreements to promote the brand they have created through their healthcare practice.  We have seen the most healthcare NIL activity with longevity and wellness providers, as well as orthopedics.

Compounding GLP-1 Drugs - Recent Updates

Recent guidance from the Ohio Board of Pharmacy (“BOP”) indicates that providers should generally use the FDA approved GLP-1 drug, rather than a non-FDA approved compounded version of the medication. Importantly, if a GLP-1 drug is commercially available, it cannot be copied through compounding. Currently, compounded copies of Tirzepatide and Semaglutide are not permitted.

Top Compliance Risks for Ohio Med-Spas in 2025

The Ohio Board of Pharmacy has increased inspections of med-spas holding Terminal Distributor of Dangerous Drugs (TDDD) licenses, with many facing enforcement actions in 2025. Common issues include purchasing from unlicensed distributors, improper drug storage, inadequate recordkeeping, and insufficient prescriber oversight. Understanding these risks and maintaining compliance can help protect your practice from penalties and license suspension.