The Health Insurance Portability and Accountability Act (HIPAA) is a federal law created by Congress in 1996. The main purpose of HIPAA is to ensure the privacy and security of patient records and personal health information.

HIPAA requires covered entities to use specific administrative, physical, and technical safeguards to secure patient data and health information. Covered entities must use policies and procedures to protect patient privacy and confidential information, such as name and address, to verify patient identity, and to properly store and transmit data. The HIPAA Privacy Rule safeguards the electronic exchange of protected health information.

Under HIPAA, covered entities are required to have written policies and procedures in place so as to be able to comply with the law. Processes have to be established to ensure that these policies and procedures are followed consistently. These processes should include training staff on privacy and security, assigning a privacy and security officer, conducting risk assessments, and creating a data breach notification system. Covered entities must also implement security measures such as encryption and access control measures.

HIPAA also requires covered entities to audit their systems to ensure that the necessary security measures are in place and that the data remains secured. Noncompliance with HIPAA standards and best practices, including failure to follow written policies and procedures, is a violation that can lead to significant penalties and citations.

The HITECH Act of 2009 was created to extend and expand the protections outlined in HIPAA. The Act requires that a patient must be notified in the event of their data being compromised and imposes greater liabilities on entities in cases of data breaches. The Act also requires that covered entities become more transparent and open in their data-handling practices, giving patients access to their own health records and the ability to discuss any related instances with them.

Along with these changes, the Act also introduced new requirements such as Breach Notification Rule, Business Associate Agreements, and the Notification of Enforcement Discretion provisions. The Notification of Enforcement Discretion provision enables the Secretary of the Department of Health and Human Services to develop necessary provisions and guidance to provide appropriate remedies and resources for those who have been victims of HIPAA violations.

HIPAA plays an important role in the healthcare industry by providing security and privacy measures that protect both individuals and organizations from data breaches and HIPAA violations. Covered entities are expected to comply with HIPAA standards and ensure that all necessary safeguards are in place to protect patient information. By doing so, organizations can avoid significant fines and sanctions. The HITECH Act further reinforces the need for compliance and offers additional insight into how healthcare organizations can remain compliant with HIPAA requirements.