industry standard
"industry-standard practice... routinely used by some of the largest health providers, health systems, and healthcare brands."
There was a time when a whole load of things that are now illegal were 'standard practice' for those who could get away with them. That does not make them right, legal or defensible now.
Reading the article I think that US$7.8 million or thereabouts is a pifflingly small sum to be fined for the breach of trust and misrepresentation. Claiming to be HIPAA certified when you are not, changing the wording concerning the privacy of client data, making the questionnaire mandatory (could not be skipped), and all this to people with mental health issues they were hoping to get help with is appalling.
It sounds like they are managed, or have been taken over, by a group of people with no conscience.