Is Your Sober Living Home Accidentally Violating HIPAA Laws?

HIPAA compliance is one of the most misunderstood areas of sober living home operations. Some operators assume they must follow every HIPAA regulation, while others dismiss it entirely. The truth lies somewhere in between.

Does HIPAA Apply to Your Sober Living Home?

Not all sober living homes are subject to HIPAA laws. An organization becomes a “covered entity” only if it furnishes, bills, or receives payment for healthcare AND transmits covered transactions electronically.

If your facility bills solely for room and board, you likely fall outside HIPAA requirements. However, the lines can blur quickly.

When HIPAA Definitely Applies

Your sober living home may need HIPAA compliance if it:

• Provides and bills for addiction treatment counseling beyond housing
• Coordinates care with other healthcare providers
• Bills insurance companies for clinical services
• Maintains medical records or treatment plans

The Florida Model Complication

Under the Florida model, operators often run both treatment facilities and housing simultaneously. Since residents often attend day programs while living on-site, determining HIPAA obligations requires legal consultation based on your specific business structure.

If you operate under this model, don’t assume you’re exempt. Get professional legal advice.

Common Violations That Catch Operators Off Guard

Even operators who try to protect privacy often make these mistakes:

Sharing Information Without Written Consent

You cannot share resident information with family members, employers, or other treatment providers without explicit written consent. “But their mom called!” isn’t a valid excuse.

Unencrypted Communication

Sending health data through unencrypted email violates HIPAA. This includes intake forms, progress notes, and even casual communications about a resident’s status.

Confirming Resident Status

Simply confirming that someone is a resident can violate privacy rules. Train staff to respond appropriately to inquiries without confirming or denying residency.

Improper Government Disclosures

Disclosing resident health information to government agencies without proper authorization can result in significant penalties. Understand when disclosure is required and when it’s prohibited.

What Should You Do?

If you’re uncertain about your HIPAA status, use CMS tools to verify your coverage requirements. When in doubt, consult with a healthcare attorney who specializes in substance abuse treatment regulations.

Consider proactively implementing HIPAA safeguards even if you’re not technically required to. Privacy protections build trust with residents and protect your organization from potential liability.

The penalties for HIPAA violations can be severe, ranging from fines to criminal charges in serious cases. Taking privacy seriously isn’t just ethical; it’s smart business.