Resources

Client Alerts, News Articles, Blog Posts, & Multimedia

Everything you need to know about BMD and the industry.

Ohio Recovery Housing Operators Beware: House Bill 58 Seeks to Make Major Changes

Client Alert
February 26, 2025

On February 18th, Ohio State Representatives Justin Pizzulli (R-District 90)  and Dontavius Jarrells (D-District 1) introduced House Bill (HB) 58, which proposes sweeping changes to Ohio’s current recovery housing landscape. HB 58 gives local Alcohol, Drug Addiction, and Mental Health (ADAMH) Boards (and their designees) authority to inspect recovery residences and investigate complaints levied against recovery residences (by residents, staff, or the public).

HB 58 also requires the Ohio Department of Mental Health and Addiction Services (OMHAS) to begin to issue Certificates of Need (CONs) to recovery homes seeking to engage in a “reviewable activity”.

Reviewable activities include but are not limited to:

    • Establishment, development, or construction of a new building that will be operated as a recovery housing residence;
    • Replacement of an existing building that is operated as a recovery housing residence or purchase or any other form of acquisition of an existing building that will be operated as a recovery housing residence;
    • Renovation of or addition to an existing building that is operated as a recovery housing residence that involves a capital expenditure of $500,000 or more, not including expenditures for equipment, staffing, or operational costs;
    • An increase in bed capacity at a recovery housing residence; and
    • Relocation of recovery housing residence beds from one physical building or site to another.

Under HB 58, as proposed, OMHAS will administer the CON program for recovery housing residences, approving or denying reviewable activities and issuing CONs if the reviewable activity is approved.

OMHAS will consider the following criteria (among others) when deciding whether to issue a CON to an operator:

    • The impact of the reviewable activity on the cost and quality of recovery housing in the relevant service area, including the historical and projected utilization of the services to which the application pertains and the effect of the reviewable activity on utilization of other providers of similar services;
    • The quality of the services to be provided as a result of the activity, as evidenced by the historical performance of the persons that will be involved in providing the services;
    • The impact of the reviewable activity on the availability and accessibility of the type of services proposed in the application to the population of the relevant service area;
    • The activity's short-term and long-term financial feasibility and cost-effectiveness; and
    • The impact of the activity on all other providers of similar services in the relevant service area, including the impact on their utilization, market share, and financial status.

To obtain a CON, operators will be required to submit an application and pay a non-refundable application fee to OMHAS. Further, when OMHAS grants a CON, it will monitor the activities of the recovery residence for up to five years after implementation of the reviewable activity for which the certificate was granted to ensure compliance.

Last, HB 58 requires establishment of a recovery housing residence fund funded by CON application fees and penalties assessed against operators. Alcohol, Drug Addiction, and Mental Health Boards will use the fund to pay for conducting inspections and investigations of recovery residences.

If you have questions about HB 58 or Ohio’s current regulations surrounding recovery homes, please contact BMD Member Daphne Kackloudis at dlkackloudis@bmdllc.com

or BMD Attorney Jordan Burdick at jaburdick@bmdllc.com.

Ohio Recovery HousingOhio Department of Mental Health and Addiction ServicesDaphne KackloudisJordan BurdickHealth Law
Client Alert

RNs and APRNs Take Note: Ohio Board of Nursing Mandates a New CE Reporting Period

April 29, 2026Ohio’s Board of Nursing has updated the continuing education reporting period for RNs and APRNs. Beginning March 26, 2026, CE credits must be completed between July 1 and June 30 of odd-numbered years, replacing the previous November to October timeframe.Client Alert

Ohio Med Spas: Peptide Do's and Do Not's

April 29, 2026Recent guidance from the Ohio Board of Pharmacy outlines key compliance requirements for med spas using peptides. While some peptide drugs are FDA approved, others are not or cannot be compounded. Med spa operators should ensure they source medications from licensed suppliers, avoid non-approved or “research use only” products, and follow all compounding and storage regulations to maintain compliance and avoid enforcement actions.Client Alert

Substance Use Disorder Providers: 42 CFR Part 2 Now Enforceable

April 15, 2026Updates to 42 CFR Part 2 are now enforceable, bringing significant changes to how substance use disorder (SUD) records are handled. The Final Rule aligns Part 2 more closely with HIPAA, introduces updated penalties, allows a single patient consent for treatment, payment, and operations, and adds new requirements for Notices of Privacy Practices. It also creates a formal definition of SUD counseling notes and imposes strict consent requirements for their use and disclosure. Providers should review and update policies to ensure compliance.Client Alert

AAA Introduces AI-Assisted Arbitrator for Certain Disputes

April 7, 2026The American Arbitration Association has introduced an AI-assisted arbitration platform designed to streamline certain document-based disputes. While a human arbitrator still makes the final decision, the technology can improve efficiency, reduce costs, and accelerate case resolution. Companies should weigh these benefits against considerations such as transparency, risk, and contractual requirements before adopting AI-assisted arbitration.Client Alert

Quiet Hours Texts and TCPA Claims: Consent Remains King as Courts Divide on Text Messages

March 31, 2026Businesses face increasing TCPA lawsuits over off-hours marketing texts, but recent court decisions highlight strong defenses. Clear consumer consent and updated terms and conditions can defeat many claims, while a growing number of courts are finding that text messages are not “telephone calls” under the statute. Proactive compliance measures, including clickwrap agreements and forum-selection clauses, are critical to reducing risk.
Older posts