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.


Will Federal Legislation Open Cannabis Acquisition Floodgate?

Are potential buyers quietly lobbying at federal and state levels to kick open the door to launch a new round of strategic acquisitions? Will presently pending federal legislation, the SAFE and MORE Acts, providing safe harbor for banks and re- or de-scheduling marijuana, be sufficient to mobilize into action major non-cannabis companies that previously shunned the cannabis industry due to the unknown implications of owning businesses whose activities are illegal under federal law?

The Future of the Families First Coronavirus Response Act

Over the last year we all have had to adjust to the new normal ushered in by the coronavirus pandemic. Schools and daycares closed, businesses transitioned from in-office work to work from home, bars and restaurants have closed their doors...all to slow the spread and try to prevent this pandemic from spiraling out of control. The start of the pandemic was utter pandemonium. Working parents trying to balance both caring for their now at-home children and their livelihood. Businesses trying to decide how to implement leave policies with limited information. Employees determining if they could financially afford to take time off. We were all flying by the seat of our pants trying to adjust to our new normal.

Ohio Supreme Court Clarifies Medical Statute of Limitations

The Ohio Supreme Court issued a decision in late December that clarifies and finalizes the Ohio law regarding the period of time in which patients can assert claims for medical malpractice. The Court was examining the interplay between three different statutes being the statute of limitations, the statute of repose, and the savings statute.

Ohio Hospitals and Healthcare Clinics: It’s Time to Revisit Your Billing and Collection Practices

According to a recent Cuyahoga County case, certain healthcare entities may not be protected from liability when engaging in unfair or deceptive billing acts. This decision is consistent with the growing trend across the country to encourage price transparency and eliminate unfair surprise billing practices by health care organizations. Now is the time for hospitals and other health care organizations to revisit their billing and collection policies and procedures to confirm that they are legally defensible and consistent with best practices.

HIPAA Business Associate Agreements: Why These Contracts Matter

No one loves drafting, reading or negotiating HIPAA Business Associate Agreements (BAAs). Yet many of us need to do so, and some of us do so daily. They are often boring, dense and technical, but BAAs are important from both a legal and a business perspective, and they deserve our attention. Failure to enter a BAA when one is required can constitute a HIPAA violation that results in substantial liability, as demonstrated by certain recent Department of Health & Human Services (HHS) settlements.1 A business associate who makes a disclosure that is not authorized by the applicable BAA or required by law can be subject to civil and, in some cases, criminal penalties. Further, parties are often presented with BAAs that contain onerous one-sided indemnification and other provisions that can be devasting to an organization in the event of a HIPAA breach. The significance of a BAA is often not fully understood by the parties until something goes wrong (e.g., a HIPAA security incident or breach, an Office of Civil Rights (OCR) audit or a fracture in the relationship between the parties) and, at that point, there is limited opportunity to mitigate legal and business risk. Ideally, attention should be given at the commencement of the business associate relationship, when the parties are able, to thoughtfully addressing regulatory requirements, planning and preparing for potential adverse events and appropriately allocating risk among the parties. As with most healthcare regulatory compliance initiatives, a proactive approach with respect to BAAs is preferable. This article provides a broad overview of certain BAA requirements and some practical negotiating tips for the parties involved.