Compliance Corner February 2026

HRSA 2025 Year in Review

In 2025, HRSA remained steadfast in its mission to protect and improve health outcomes across the nation, particularly for those who are underserved, medically vulnerable, or have limited access to care. Under the Make America Healthy Again Initiative and through strategic action and responsible use of federal resources, HRSA’s programs prioritized gold-standard science and strengthened health systems and communities across the country.

Key achievements include:

  • HRSA-supported health centers served 32.4 million patients — the largest increase in three years.
  • Nearly 602,000 people received care through the Ryan White HIV/AIDS Program, with patients achieving a 91.4% viral suppression rate.
  • HRSA’s workforce programs supported more than 5,540 trainees providing care in underserved communities nationwide.
  • HRSA’s Maternal Mental Health Hotline received more than 30,000 calls and texts — a 35% increase from the previous year.
  • HRSA supported nearly 48,600 solid organ transplants— the highest number ever recorded— and facilitated ongoing modernization of the Organ Procurement and Transplantation Network (OPTN). 

Learn more about how HRSA impacted communities in 2025 HERE.

Source: HRSA

 

Revised Version of Consolidated Appropriations Act Passes

On February 3, 2026, the House passed a revised version of the Consolidated Appropriations Act by a vote of 217–214, ending the partial government shutdown and delivering a major win for Community Health Centers (CHCs) and the 52 million patients they serve. The bipartisan legislation extends CHC funding through December 31, 2026, providing $4.6 billion to ensure continued access to affordable, comprehensive, and effective care for patients in rural, urban, suburban, mountain, frontier, and island communities.

This marks the largest increase in the Community Health Center Fund in a decade and provides stability after years of short-term continuing resolutions. The expanded funding paves the way for critical investments in CHC care delivery and its professional workforce, which serve as the largest primary care network in the United States.   

Specific provisions in the Act include:  

  • $350 million in base funding for the National Health Service Corps in 2026 
  • $225 million in FY 2026 funding for the Teaching Health Center Graduate Medical Education program, with additional funding in future years 
  • An extension of Medicare telehealth flexibilities through 2027

 

Source: NACHC

 

$100 Million Investment in Great American Recovery

Early February, Department of Health & Human Services (HHS) Secretary, Robert F. Kennedy, Jr., announced a $100 million STREETS Initiative to combat homelessness, opioid addiction, and crime by expanding recovery-focused, evidence-based treatment and stable housing. 

The Safety Through Recovery, Engagement, and Evidence-based Treatment and Supports — or STREETS — Initiative will fund targeted outreach, psychiatric care, medical stabilization and crisis intervention, while connecting Americans experiencing homelessness and addiction to stable housing with a clear focus on long-term recovery and independence.

The STREETS Initiative and Assisted Outpatient Treatment (AOT) grant announcements coincide with SAMHSA’s $794 million first allocation of 2026 annual block grant awards, with $319 million going to support comprehensive community mental health services for adults with serious mental illness and children with serious emotional disturbance, and $475 million to the agency’s Substance Use Prevention, Treatment, and Recovery Services Block Grant program to prevent and treat substance abuse.

The plan implements the President’s Great American Recovery executive order. For more information, visit the HHS Press Room.

Source: HHS

 

Confidentiality of Substance Use Disorder (SUD) Patient Records

By February 16, 2026, HIPAA-covered entities and Part 2 programs must have updated their Notice of Privacy Practices (NPP) to align with tighter Substance Use Disorder (SUD) confidentiality regulations. Key changes include stricter restrictions on using SUD records in legal proceedings against patients without consent, new patient rights, and requirements for disclosing how records are shared, aligned with the CARES Act. 

Key Requirements & Changes (Deadline: Feb 16, 2026)

  • Updated NPP: Entities must update their NPP to include specific information about how Part 2-protected SUD records are used and disclosed.
  • Legal Protections: Part 2 records cannot be used against a patient in civil, criminal, administrative, or legislative proceedings without specific patient consent or a court order.
  • Consent & Redisclosure: While a single “TPO” (Treatment, Payment, Operations) consent can be used, there are strict limits on how recipients can redisclose this information.
  • Required Documentation: Federally assisted SUD treatment programs must provide a new patient notice that mirrors the updated HIPAA NPP.
  • Separate Consent: A separate patient consent is now required for the use and disclosure of SUD counseling notes. 

 

Who is Impacted?

  • HIPAA-covered entities (hospitals, clinics, health plans) that receive/maintain Part 2 records.
  • Federally assisted SUD treatment programs (“Part 2 Programs”). 

 

Entities must revise their policies, procedures, and training to reflect these increased protections and ensure compliance to avoid new civil enforcement penalties.

Source: HHS

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March 18th, 2026

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Proving Program Effectiveness Under Regulatory Scrutiny

Regulators are no longer satisfied with documentation alone; they want evidence that your compliance program actively prevents, detects, and corrects risk. Investigators expect to see how issues are identified early, investigated thoroughly, corrected effectively, and monitored over time. Boards demand measurable insight, and leadership needs confidence that exposure is managed before it becomes a liability. The standard has shifted from activity to impact.