By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    HIPPA compliance
    How Medical Office Staff Can Make Your Practice HIPAA Compliant
    October 29, 2021
    Everything you need to know about hyaluronic acid treatment
    Everything you need to know about hyaluronic acid treatment
    February 10, 2022
    Which Mushroom Capsules Are Good for Your Health?
    May 5, 2022
    Latest News
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
    The Wide-Ranging Benefits of Magnesium Supplements
    June 11, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    Image
    Healthcare Pricing Transparency Gains Momentum
    June 24, 2013
    non-clinical care factors in health outcomes
    Addressing Non-Clinical Care Factors in Health Outcomes
    November 15, 2013
    e interventions
    Healthcare Progress Depends On “E Interventions”
    July 10, 2014
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Reasons Why HIPAA Is Vital For The Healthcare Industry
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > eHealth > Medical Records > Reasons Why HIPAA Is Vital For The Healthcare Industry
eHealthMedical Records

Reasons Why HIPAA Is Vital For The Healthcare Industry

Mehul Rajput
Mehul Rajput
Share
11 Min Read
SHARE

Acronyms exist in the healthcare industry. Although it is tough to keep track of every letter, we must understand them in detail. Whether it’s regulatory processes or the medical terminology, everything has a vital cause.

Contents
Defining HIPAA1. Security Rule2. Privacy Rule3. Identifiers Rule4. Transaction Rule5. Enforcement RuleWho Should Follow HIPAA Rules?Who Should Not Follow The HIPAA Rules?Why is HIPAA Important To a Healthcare Provider?1. HIPAA compliance urges on patient transparency2. Non-compliance is expensive3. Your reputation depends on itWhat Types of Rights Do You Have About Your Medical Record Kept With A Healthcare Provider?When Can Your Medical Records Be Shared?What Are The Penalties Charged For HIPAA Breach?Winding Up

All they want is to keep patients – and the providers from whom they get treatment – safe and secure. And HIPAA is one such instance.

Defining HIPAA

HIPAA (Health Insurance Portability and Accountability Act) was passed in 1996 to protect the patients’ interests. This act makes sure the protected health information of patients stays confidential.

In terms of defining HIPAA, there are 5 primary rules. So, before discussing the importance of HIPAA to the healthcare industry, let’s discuss them:

More Read

What Are Sensors And How Are They Used In Health?
10 Reasons Your Healthcare Practice Should Invest in Digital Marketing
How to Merge Healthcare with Mobility?
Promising New Patient Recovery Technology
Health Start-Ups! – Beddit Does It Right

1. Security Rule

This rule safeguards the privacy of the personal medical records of a patient. Moreover, it decides upon the strategies, standards, and procedures that the health industry should follow for safeguarding the data on accessibility, storage, and during transference.

It consists of 3 different levels of protections to offer complete security for the patient information.

Physical protection to handle and safeguard data storage units within the company facility.
Technical protection that associates with authentication and encryption for safe data access. Administrative protection that handles the HIPAA security compliance team.

2. Privacy Rule

This standard handles the protection of the PHI and medical records of the patients. It has some restrictions and terms on the uses and the revelation of the sensitive data in certain circumstances.

This rule permits a person for asking for a copy of his/her medical track so that he/she can check it and correct it in case he/she finds any error. To check the copy, the patient needs to fill particular forms that are consistent with the Privacy Rule.

  • Privacy Complaint Form
  • Request for Restriction of Patient Healthcare Information
  • Authorization for Use or Disclosure Form
  • Request for Access to Protected Health Information
  • Notice of Privacy Practices Form
  • Request for Accounting Disclosures Form

3. Identifiers Rule

This rule associates with 3 exclusive identifiers that utilize HIPAA rules for both financial and administrative purposes.

  • Standard Unique Employer Identifier
  • National Health Plan Identifier
  • National Provider Identifier

4. Transaction Rule

This rule is associated with the transaction codes used in the HIPAA transaction. These codes are important because they make sure the precision, security, and safety of a patient’s medical record.

5. Enforcement Rule

As the name says, this rule is all about fines and penalties charged on any violation of data by the organizations that are supervising the patients’ medical reports.

The aforementioned information should have provided you an idea as to the basic rules of HIPAA. But the question may arise if some organizational bodies don’t need to follow the rules laid down in the HIPAA?

Yes, there are some entities are not mandated to follow such rules as it was found that in some cases, medical history can be shared because of the public’s betterment and the fact that some businesses need to operate successfully.

Who Should Follow HIPAA Rules?

The HIPAA rules should be followed by:

  • Health maintenance organizations (HMOs)
  • Health insurance organizations
  • Some government programs
  • Company health plan
  • Clinics, hospitals, pharmacies, and nursing homes
  • Dentists, doctors, chiropractors, and psychologists
  • Every organization that handles legal business and has custody of the patients’ medical histories.

Who Should Not Follow The HIPAA Rules?

The HIPAA rules don’t have to be followed by:

  • Employers
  • Life insurers
  • Workers compensation carriers
  • Maximum schools and school districts
  • Many municipal offices
  • Law enforcement organizations
  • State organizations

Why is HIPAA Important To a Healthcare Provider?

Now the question comes why is HIPAA important to the healthcare industry? This can be answered from a person and an organization’s point of view as well.

Let’s take here the case of the healthcare organization!

1. HIPAA compliance urges on patient transparency

In case a patient knows that his data is safe and secure, he is more likely to reveal relevant medical details. However, there are plenty of topics that can evoke shyness or sensitivity in patients. These could incorporate substance abuse, mental health problems, reproductive concerns, and more.

As such, these issues could lead a patient to conceal data that could make all the differences in a perfect diagnosis.

According to the study of the healthcare industry, if patients rely on a healthcare organization, they are looking for more care from it. Moreover, they are expecting more to comply with return and suggestions for follow-up assistance.

On all accounts, a healthcare organization that is clear and transparent regarding its HIPAA compliance will strengthen that similar transparency level in its patients.

2. Non-compliance is expensive

A HIPAA breach could happen unknowingly or intentionally. Either way, in case a healthcare provider fails to fulfill HIPAA standards, it could be looking at a penalty or fine. The steps to take to make sure compliance are comparatively much simpler and less costly.

Arranging secure and safe procedures, training staff and maintaining and updating systems can help you abstain from a security violation. Moreover, you can avoid the huge charges that go alongside it.

In case you don’t know where your company stands in terms of compliance, start with the security risk assessment tool offered by the US Department of Health and Human Services. This can help you decide whether or not you are covered when it comes to following HIPAA rules.

3. Your reputation depends on it

Aside from the cost, it is also crucial to ponder the non-monetary approaches failure of which can cost you.

From lots of hours invested in contacting patients in case of a security violation, to a patient’s trust loss and a disgrace on your brand recognition, there are several ways you could have to pay forcefully.

In a nutshell, it is vital to set rules of HIPAA compliance. Then, you need to make sure that every Healthcare IT Solutions Provider, and the patients they are providing services, are familiar with them.

This conveys the message that you respect and value people’s dignity, privacy and of course individual decision-making. Also, it shows that you will try your best to safeguard these characteristics.

What Types of Rights Do You Have About Your Medical Record Kept With A Healthcare Provider?

  • The patient can correct any error that he finds not fit in his records.
  • The patient can inspect his medical history on demand.
  • The patient must have the ultimate authority to approve of sharing his medical data for any cause of advertisement.
  • The patient should be informed by the respective authority if they share his data with a third-party.
  • In case a patient thinks that his medical record is shared with somebody unauthorized without informing him or without giving him access to his medical history, he can simply complain against that unauthorized entity that has violated the law.

When Can Your Medical Records Be Shared?

The HIPAA rule was legislated for safeguarding a patient’s privacy, but this law still has some limitations.

These restrictions are put in the authorization so that it enables a seamless functioning of the healthcare industry and there is an approximate enhancement in the health centers’ service quality.

Let’s check out the limitations placed in the authorization when your medical data can be shared:

  • For paying the doctors and hospitals for the services they have offered for your treatment for running their business successfully.
    For your care, treatment, and organization with other health services.
  • To make sure that the doctor provides exceptional quality care and the nursing homes are well-maintained and clean.
  • With your immediate relatives who are engaged in offering healthcare services or will pay your medical bills if you don’t object to sharing of your medical data.
  • To make police reports ready in case there is a case of stabbing, gunshot wounds, and others.
  • To safeguard public health if there is an epidemic.

What Are The Penalties Charged For HIPAA Breach?

If there is any HIPAA breach, the authorities can charge penalties that vary based on the violation. The penalty relies on the intentional or unintentional leaks.

Apart from this, the court also checks how many times the leak had happened from the same organization before charging the sum of penalties.

Winding Up

So, this is everything you should know about the importance of HIPAA regulations for the healthcare industry. Now you should assess all types of data that you will collect to analyze whether you should be HIPAA compliant or not.

HIPAA authorization is continuously changing. Albeit it appears a little complex, it’s important to make sure that everybody is in compliance.

Since you should know all HIPAA regulations, you should be ready for the changes also. With constant healthcare improvements and other out-of-line movements, this
industry requires flexibility.

TAGGED:Healthcarehealthcare industryHIPAA
Share This Article
Facebook Copy Link Print
Share
By Mehul Rajput
Follow:
Mehul Rajput is a CEO and co-founder of Mindinventory that provides web and mobile app development solutions from startup to enterprise level company. He's an avid blogger and writes on mobile technologies, mobile app, app marketing, app development, startup and business.

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025
Telemedicine Apps
Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
Health
July 20, 2025
Grounded Healing: A Natural Ally for Sustainable Healthcare Systems
How IT and Marketing Teams Can Collaborate to Protect Patient Trust
Global Healthcare Policy & Law
July 17, 2025
paramedics in surgical gloves and masks
How Health Choices and Legal Actions Intersect After an Injury
Health care
July 16, 2025

You Might also Like

How to Use the Multiplier App

August 27, 2012
Are Patients Being Informed Of Alternatives To Medication?
eHealthHospital Administration

Are Patients Being Informed Of Alternatives To Medication?

May 31, 2018

EHR and Clinical App Speech Enabling

March 4, 2011
Image
BusinessMedical DevicesMedical InnovationsMobile HealthNewsTechnology

Mobile Health Around the Globe: How to Incentivize mHealth Innovation – Qualcomm Tricorder XPrize Update

May 28, 2013
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?