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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.


Your Workplace Under Biden

This is my favorite recurring post – Predictions of How a New Administration Will Affect Your Workplace. Four years ago, we accurately called the emasculation of the 2016 proposed FLSA Overtime Rules (the salary exemption threshold was set at $35,568 in 2019, rather than $47,476 as proposed), we forecasted a conservative shift of the NLRB and its results (a roll-back of employee rights, social media policy evaluations, and joint employer rules), and we nailed the likelihood of multiple conservative appointments to the United States Supreme Court and its long-term effects (although I completely failed to predict that my ND classmate Amy Coney Barrett would fill the final vacancy during the Trump administration). This time, the L+E Practice of BMD has decided to make it a group effort at predicting what will happen, what probably happen, and what might happen under President Biden. As always, please save this in your important files and pull it out four (or eight) years from now to judge our accuracy.

HHS Provider Relief Funds Reporting Requirements: Important Updates Every Provider Should Know

HHS continues to revise its reporting requirements for the use of the Provider Relief Funds. Providers with more than $10,000 in Provider Relief Fund payments must report on the use of the funds through December 31, 2020. The reporting window will begin on January 15, 2021 and providers must complete reporting obligations for FY 2020 by February 15, 2021 through a portal designed by HHS. However, providers that have unexpended funds as of December 31, 2020, will have an additional 6 months to use the remaining funds through June 30, 2021. These providers must submit a second and final report no later than July 31, 2021.

Should I Apply for Phase 3 Funds? Important Considerations Every Provider Should Know

On October 1, 2020, the Department of Health and Human Services (“HHS”) announced an additional $20 billion in new funding for providers through a Phase 3 distribution. Importantly, providers that previously received HHS Provider Relief Funds or already received payments of approximately 2% of annual revenue from patient care are eligible to apply. Eligible providers have until November 6, 2020 to apply for these Phase 3 Funds. However, the question from providers continues to be: Should I Apply for Phase 3 Funds?

CISA Ransomware Practices

On October 28, 2020, the United States Cybersecurity and Infrastructure Security Agency (CISA) issued an alert warning of imminent threats to US hospitals and healthcare providers. The specific threat involves RYUK Ransomware attacks. RYUK is a novel ransomware that goes undetected by commercial anti-virus/malware detection programs. Once deployed, RYUK encrypts all data and disables systems. In short, it cripples all functionality down to phone systems and automated doors. Healthcare providers should alert their employees to remain hyper-vigilant and report any suspicious activity seen in email or on networks. It has been reported healthcare providers in New York, Pennsylvania and Oregon have been targeted in the last 48 hours. If your organization encounters issues, BMD can assist in mobilizing a response team and has contacts with forensic IT firms that are familiar with RYUK. It is advisable to engage professionals with experience dealing with this specific threat.

HHS Announces an Additional $20 Billion In Provider Relief Grants

The U.S. Department of Health and Human Services (“HHS”) announced an additional $20 billion in new funding for providers on October 1, 2020. Eligible providers include those that have already received Provider Relief Fund payments as well as previously ineligible providers, such as those who began practicing in 2020, and an expanded group of behavioral health providers confronting the emergence of increased mental health and substance use issues exacerbated by the pandemic. The new Phase 3 General Distribution is designed to balance an equitable payment of 2% of annual revenue from patient care for all applicants plus an add-on payment to account for revenue losses and expenses attributable to COVID-19.