On July 1, Florida addiction recovery homes, and potentially health care providers in general, that thought they had legal referral arrangements may need to think again. Why? Florida House Bill 369 (HB). The intent of HB 369 was to strengthen Florida laws on patient brokering and target bad actors fueling the opioid crisis and the so-called “sober homes.” The bill covers a plethora of topics that range from substance abuse treatment, recovery, patient brokering/deceptive marketing practices and peer specialists. The revisions to the Patient Brokering Act may affect a lot of business relationships that were previously considered exceptions to the act and classified under a safe-harbor provision.

Patient Brokering Act and the Sober Homes Industry

The Florida Patient Brokering Act is a Florida statute that makes it a felony for any person to engage in patient brokering. Patient brokering is described as a recovery treatment center paying a third party for referring patients to the treatment center. Legislators and prosecutors want to crack down on sober homes that they claim often only operate as recovery residences to fraudulently bill insurance companies for unnecessary treatments, lab tests and assessments. Those who violate the Patient Brokering Act can face serious fines up to $500,000 and felony charges.

Which Business Arrangements Are in Legal Jeopardy?