Understanding HIPAA and HITECH Compliance

The healthcare industry is now governed by stringent regulations that will change the way the healthcare organizations have been operating. Here is an overview of the Laws that govern the healthcare industry today.

The American Recovery and Reinvestment Act (ARRA) is an economic stimulus bill enacted on the 17 February 2009 to help the United States economy recover from recession. Apart from health care, the other sectors where ARRA has its bearing are education, infrastructure, energy, and social welfare.

ARRA and the Health Care Industry

The American Recovery and Reinvestment Act of 2009 not only modifies an already existing federal law but also introduces a new one with the aim to improve economic efficiency in the healthcare industry by encouraging increased use of technology in the sector. Through the HIPAA compliance and HITECH Acts, ARRA makes it mandatory for all doctors, dentists, chiropractors, psychologists, nursing care, or anyone who handles Patient Health Information (PHI) to be compliant with the regulations laid down in both these Acts. Not only lone medical practitioners but also small medical groups are bound to comply with these Acts.  Under the Health Information Technology for Economic and Clinical Health (HITECH) Act, health care data breaches will attract significantly stiffer penalties than they used to with the Department of Health & Human Services (HHS) seriously committed to enforce those penalties and publicize all major data breaches. The HITECH Act also broadens the definition of a covered entity under the Health Insurance Portability and Accountability Act; many organizations that had not been required to comply with HIPAA privacy and security rules must now do so.

HIPAA and the HITECH Acts

HIPAA or the Health Insurance Portability and Accountability Act was enacted in 1996 to enhance the efficiency of the healthcare system by ensuring insurance coverage for employees and workers, forbidding discrimination based on health status, protecting the privacy of patients’ health records and  promoting the use of technology. The data privacy and security requirements of HIPAA came into effect in 2003. As per the amendment, all businesses in the medical and healthcare sector are not only required to protect the medical information of patients, but also to make their systems compliant with the standards set forth in HIPAA.

The HITECH or the Health Information Technology for Economic and Clinical Health Act, on the other hand, was enacted in 2009 as part of ARRA. As per this act, from 2011, financial support will be provided to all those who take steps to embrace technology in the healthcare space by maintaining electronic health records (EHR). However, from 2015 onwards those who fail to comply with the HITECH Act have to face heavy penalties. The Electronic Health Record Incentive program offers cash incentives to hospitals and other eligible professions (EPs) who can successfully demonstrate the meaningful use of EHR technology.

HIPAA/ HITECH Compliance

The need to comply with HIPAA and HITECH Act has placed increased pressure on medical groups and practitioners who not only have to ensure but also prove that their systems and practices are competent enough to protect patient health information. Since lack of a comprehensive security framework can cause irreparable damages, healthcare organizations need a solution that can handle healthcare regulatory compliance effectively. Such a solution would come as a relief for all healthcare providers and practitioners by making healthcare compliance simple and hassle-free.