Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Substance Use Disorder Providers: 42 CFR Part 2 Now Enforceable

Client Alert

Does your practice treat patients with substance use disorders? Does your practice retain substance use disorder records? If the answer to one of those questions is “yes,” you will want to be aware of the recent updates to 42 CFR Part 2 (“Part 2”) requirements.  

Part 2 extends patient privacy protections by applying stringent protections to a patients’ substance use disorder (“SUD”) medical records. Modifications to Part 2 under the Confidentiality of Substance Use Disorder Patient Records Final Rule (“Final Rule”) went into effect on April 16, 2024, with a compliance date of February 16, 2026. The Final Rule modifications better aligned HIPAA and Part 2 standards and clarified previous Part 2 regulations. The following lists key changes that providers should be aware of:

Updated Penalties and Safe Harbor

The new Part 2 regulations apply HIPAA penalties to violations of Part 2. The regulations also create a “safe harbor” for investigative agencies (or those working on behalf of an investigative agency) that act with reasonable diligence before making a demand for records.[1]

Single Consent

The Final Rule “allows a single consent for all future uses and disclosures for treatment, payment, and healthcare operations.”[2]

Updated Content Requirements for Notice of Privacy Practices

The Final Rule creates specific content requirements that a Part 2 program must include in its Notice of Privacy Practices (“Notice”).[3]

A Part 2 Program must include specific information in the header of its Notice, including notifying patients of (1) how their health information may be used and disclosed; (2) their rights with respect to their health information; (3) how to file a complaint concerning a violation of the privacy or security of their health information; (4) their rights concerning their information, and (5) their right to have a copy of the Notice upon request.

In addition, a Part 2 program must include specific descriptions of how it will use and disclose patient records, a list of patients’ rights, such as the right to request restrictions of certain disclosures, a description of how a patient may exercise those rights, and a statement detailing the duties of the Part 2 program.

SUD Counseling Notes

Part 2 creates a new definition describing SUD counseling notes. Under Part 2, SUD counseling notes are “notes recorded (in any medium) by a Part 2 program provider who is a SUD or mental health professional documenting or analyzing the contents of conversation during a private SUD counseling session or a group, joint, or family SUD counseling session and that are separated from the rest of the patient's SUD and medical record.” [4]

The Final Rule mandates that a Part 2 program must obtain consent for any use or disclosure of SUD counseling notes, except:

  • To carry out the following treatment, payment, or health care operations:
    • Use by the originator of the SUD counseling notes for treatment;
    • Use or disclosure by the Part 2 program for its own training programs in which students, trainees, or practitioners in SUD treatment or mental health learn under supervision to practice or improve their skills in group, joint, family, or individual SUD counseling; or
    • Use or disclosure by the Part 2 program to defend itself in a legal action or other proceeding brought by the patient.
  • Use or disclosure that is required or permitted with respect to the oversight of the originator of the SUD counseling notes.[5]

The Final Rule also adds clarification that a written consent for a use or disclosure of SUD counseling notes may only be combined with another written consent for a use or disclosure of SUD counseling notes.[6]

Next Steps

Practices and providers will want to ensure that any policies are up to date and reflect the changes that are now enforceable under Part 2. We recommend engaging an attorney to review or update your current policies in order to ensure compliance with Part 2 updates.

To learn more about how the updates to 42 CFR Part 2 could impact your practice, please contact BMD Member Jeana Singleton at jmsingleton@bmdllc.com or 330-253-2001. 


[1] 42 CFR Sec. 2.3. See also, 89 Fed. Reg. 12474 (February 16, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-02544.pdf.

[2] 42 CFR Sec. 2.33. See also, 89 Fed. Reg. 12476 (February 16, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-02544.pdf. See also, Fact Sheet 42 CFR Part 2 Final Rule, U.S. Department of Health and Human Services, available at https://www.hhs.gov/hipaa/for-professionals/regulatory-initiatives/fact-sheet-42-cfr-part-2-final-rule/index.html#ftn1.

[3] 42 CFR Sec. 2.22, See also, 89 Fed. Reg. 12475 (February 16, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-02544.pdf.

[4] 42 CFR Sec. 2.11. See also, 42 CFR Sec. 2.12. See also, 89 Fed. Reg. 12474-12475 (February 16, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-02544.pdf.

[5] 42 CFR Sec. 2.31. See also, 89 Fed. Reg. 12476 (February 16, 2024), available at https://www.govinfo.gov/content/pkg/FR-2024-02-16/pdf/2024-02544.pdf.

[6] Id.


Five Common Pitfalls for Employers to Watch Out for Under the Fair Labor Standards Act

The Fair Labor Standards Act (FLSA) sets forth requirements for employers including, but not limited to, minimum wage, overtime pay, and recordkeeping for covered employees. These requirements are not as simple as they may appear on their face, which leads many employers to fall into compliance issues that they did not realize even existed.

The NLRB Limits the Reach of Confidentiality and Non-Disparagement Provisions in Severance Agreements Overruling Trump-Era Policies

Employers should exercise caution and closely examine the content of severance agreements to ensure compliance with a recent National Labor Relations Board (“NLRB”) decision.  On February 21, 2023, the NLRB restricted the breadth of permissible language of confidentiality and non-disparagement clauses when it issued its decision in McLaren Macomb and overruled its Trump-era decisions in Baylor University Medical Center and IGT d/b/a International Game Technology.

Ohio Medical Board Releases New Telehealth Rules

On Tuesday, February 21, 2023, the State Medical Board of Ohio released its final telehealth rules to implement Ohio’s telehealth statute (O.R.C. 4743.09) for physicians, physician assistants, dieticians, respiratory care professionals and genetic counselors. Ohio’s advanced practice registered nurses (“APRNs”) should also take note of these rules. While the Medical Board does not govern APRNs directly, those APRNs who are required to have a collaborating physician and standard care arrangement (namely nurse practitioners, certified nurse midwives, and clinical nurse specialists) are still affected by the rules. Generally, if an APRN’s collaborating physician is limited in their practice, then the APRN will also be limited.

The End of the Public Health Emergency is (Finally) Here

The COVID-19 Public Health Emergency (“PHE”) that has been in effect for over three years is finally slated to end on May 11, 2023.[1] With the end of the PHE will come many changes for healthcare providers to be aware of; however, some changes may not come until much later.

Multi-340B Contract Pharmacy Locations on the Brink? The Third Circuit’s Ruling Gives a Hint.

The 340B drug discount program requires pharmaceutical manufacturers to offer to sell their products at significant discounts to safety net providers called “covered entities.” In 1996, the Health Resources and Services Administration (HRSA) issued guidance authorizing covered entities to enter into a contract pharmacy arrangement with a single third-party contract pharmacy, to which the manufacturer would ship 340B medications but bill the covered entity. In 2010, HRSA issued revised guidance permitting covered entities to enter into an unlimited number of contract pharmacy arrangements.