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Why HIPAA compliance pays off

Written by Caitlin Anthoney | June 22, 2024

Health Insurance Portability and Accountability Act (HIPAA) compliance is both a requirement and a strategic advantage for healthcare providers. Providers must invest in HIPAA compliance to safeguard their organization’s future, ensuring they remain secure, efficient, and competitive in an increasingly digital and regulated healthcare environment.

 

HIPAA compliance is a proactive measure 

According to a study in Biomedical Instrumentation & Technology, "as much as the healthcare industry is investing in electronic health records, mobile medicine, and other information sharing opportunities, there's still so little understanding of the business and clinical repercussions in terms of data security, patient safety, and compliance with the Health Insurance Portability and Accountability Act (HIPAA)."

According to a study in Biomedical Instrumentation & Technology, "as much as the healthcare industry is investing in electronic health records, mobile medicine, and other information sharing opportunities, there's still so little understanding of the business and clinical repercussions in terms of data security, patient safety, and compliance with the Health Insurance Portability and Accountability Act (HIPAA)." 

The study also urges healthcare organizations to prioritize data security measures, protecting patients' health information and ensuring HIPAA compliance. "The choice is obvious: Make an upfront investment of time and resources to become compliant or eventually pay the costs to recover from a violation of the standards."

 

Avoiding penalties

One of the most immediate benefits of HIPAA compliance is avoiding financial penalties. The U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) can impose severe fines for non-compliance, ranging from $100 to $50,000 per violation, with a maximum annual penalty of $1.5 million for identical provisions.

Beyond financial repercussions, non-compliance can severely damage an organization's reputation, leading to a loss of business and negative publicity. Therefore, providers must be HIPAA compliant, ensuring sensitive patient information is protected from unauthorized access and data breaches.

Go deeper: What are the penalties for HIPAA violations?

 

Protecting patient privacy and trust

HIPAA safeguards patients' personal health information (PHI), so patients expect their sensitive data to stay secure. Moreover, adhering to HIPAA standards helps providers protect patient privacy, promoting a trusting patient-provider relationship.

 

Enhancing data security

As cyber threats continually increase, providers must implement HIPAA compliant security measures, like encryption, access controls, and regular security audits to protect PHI from potential breaches. These measures safeguard patient data and enhance the organization’s overall security posture, protecting it from cyber threats.

 

Improving operational efficiency

HIPAA compliance often requires provider organizations to standardize processes for increased operational efficiency as evidenced by Compliancy Group:

“Investing in HIPAA compliance comes with a host of benefits, including increased efficiency [where] practices use the built-in scalability in HIPAA to ensure they are compliant as they grow.”

For example, adopting electronic health records (EHR) and secure communication channels can streamline workflows, reduce paperwork, and minimize errors, ultimately improving patient care and administrative efficiency.

Read also: Streamlining healthcare KPI management with HIPAA compliant forms

 

Gaining competitive advantage

Patients and partners are more likely to choose a provider that offers data privacy and security. So, providers can market their organization as HIPAA compliant to attract more patients and business opportunities, giving them a competitive edge.

As Compliance Group explains: “Set yourself apart from your competitors, build loyalty, and give your practice a secure edge. Patients feel safer when they know their information is protected.”

 

Mitigating legal risks

PHI breaches can result in lawsuits from affected individuals, as seen in the Frontier Communications and Atlanta Women's Health Group class actions. However, using a HIPAA compliant platform, like Paubox, can help providers reduce the risk of legal actions and the associated costs of settlements and legal fees.

 

Improving staff awareness and training

HIPAA mandates regular training for all employees handling PHI. Provider organizations can offer HIPAA compliant training to ensure staff are well-informed on data protection and security best practices. Such training can prevent accidental breaches and create a culture of security within the organization, making everyone more vigilant and responsible.

 

Ensuring long-term compliance

Provider organizations must regularly audit and update their policies to stay HIPAA compliant. More specifically, HIPAA compliance must be audited at least once a year. These audits can help providers identify areas where their practice may fall short and allow them to make any necessary changes to their policies and procedures.

Ultimately, the continuous improvement cycle ensures that healthcare organizations remain aligned with evolving regulations and technological advancements.

Go deeper: Developing guidelines for HIPAA compliant email patient communication

 

How HIPAA compliant emails can help

Maintain patient privacy

Providers must use a HIPAA compliant emailing platform, like Paubox, to secure patients' PHI. These emails use encryption and other security measures to prevent unauthorized access during transmission and rest, safeguarding sensitive information from potential breaches. 

Additionally, it helps healthcare providers avoid the severe financial and reputational penalties associated with non-compliance.

 

Improve workflows and communication

HIPAA compliant emails can share patient information, test results, and treatment plans quickly and securely, leading to more efficient and effective patient care. It ensures that health information is accessible to authorized personnel without compromising patient privacy.

 

Reduced administrative burden

Providers can automate HIPAA compliant emails to reduce their administrative workload. Additionally, it allows providers to spend more time and resources on patient care, enhancing the overall efficiency of the healthcare system. 

 

Build patient trust 

When patients know that their healthcare providers are using secure methods to communicate sensitive information, they are more likely to feel confident and engaged in their care, maintaining long-term patient relationships and enhancing overall satisfaction.

 

How HIPAA compliant text messages can help

Efficient communication

HIPAA compliant text messaging enhances efficient communication among healthcare providers. Unlike traditional methods, secure text messaging allows real-time communication for quicker decision-making and more responsive patient care. 

 

Improve patient engagement

Providers can use HIPAA compliant text messaging to send appointment reminders, follow-up instructions, and other information directly to patients' mobile devices, offering convenience and security. 

They encourage more frequent communication, improving patient engagement so patients can play a more active part in their healthcare journey.

 

Improve medication adherence

Providers can improve medication adherence by texting patients refill reminders. It also allows pharmacies to support medication management and promote better health outcomes.

 

Stronger provider-patient relationship 

Providers can use a modern, patient-friendly communication method like HIPAA compliant text messaging to implement a patient-centered approach, which conveniently allows patients to stay engaged despite their busy schedules.

Read also: Patient preference and HIPAA compliant emails or texts

 

FAQs

What kind of information does HIPAA protect?

HIPAA safeguards protected health information (PHI), which includes any information that can identify a patient and relates to their health condition or treatment.

 

Can HIPAA compliance give an organization a competitive advantage?

Yes, being HIPAA compliant can attract more patients and business partners, differentiating an organization from its competitors.

 

What are the legal risks of not being HIPAA compliant?

Legal risks include potential lawsuits from affected individuals and the associated costs of settlements, legal fees, and damage to reputation.