Editor's Letter

Getting Hip to HIPAA's Changes

Among the provisions included in the 2009 American Recovery and Revitalization Act (ARRA) designed to help stimulate the U.S. economy is the Health Information Technology for Economic and Clinical Health (HITECH) Act. Information management professionals should be aware that the HITECH Act modifies the information security provisions first established by the Health Information Portability and Accountability Act (HIPAA) and encourages the further development of electronic medical records (EMR) systems as a way to stimulate the economy.

The HITECH Act strengthens the regulatory requirements under HIPAA’s security and privacy rules, increases civil penalties for HIPAA violations, provides funding to hospitals and physicians to adopt health information technology and requires patient notification in the case of security breaches.

The HITECH Act also extends the HIPAA security and privacy provisions to include business associates of covered entities. According to a Health Law Alert from the law firm Nixon Peabody, "Before HITECH, the security and privacy requirements [of HIPAA] were imposed on business associates through contractual provisions with covered entities. HITECH requires business associates to restrict the use and disclosure of protected health information (PHI) and subjects business associates directly to civil and criminal penalties for violating HIPAA requirements in the same manner as covered entities."

HITECH also expands covered entities to include Web-based companies that collect personal health records (PHR), known as "PHR related entities." These companies fall under the jurisdiction of the Federal Trade Commission. Third parties that supply services to PHR related entities are classified as "third-party service providers" under the HITECH ACT and must have written contracts with the covered entity.

Fines for HIPAA violations have been increased from $25,000 to $1.5 million as a result of the HITECH Act, and the federal government must impose penalties if the violation is deemed willful, otherwise, state attorneys general are authorized to prosecute and seek civil penalties.

The HITECH Act also makes $19 billion in grants and loans available over four years for infrastructure and incentive payments under Medicare and Medicaid for providers who implement health information technology. According to Gail Bisbee of Confidential Records Management, New Bern, N.C., who spoke at the PRISM International 2009 Annual Conference in May, the first payment will be available to qualified physicians in October and can be used for back-file and day-forward conversion of medical records.

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Sponsored Content

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In nonferrous wire and cable processing, SWEED balances proven performance with ongoing innovation. From standard systems to tailored solutions, we focus on efficient recovery and practical design. By continually refining our equipment and introducing new technology, we quietly shape the industry—one advancement at a time.

Sponsored Content

Redefining Wire Processing Standards

In nonferrous wire and cable processing, SWEED balances proven performance with ongoing innovation. From standard systems to tailored solutions, we focus on efficient recovery and practical design. By continually refining our equipment and introducing new technology, we quietly shape the industry—one advancement at a time.

Sponsored Content

Redefining Wire Processing Standards

In nonferrous wire and cable processing, SWEED balances proven performance with ongoing innovation. From standard systems to tailored solutions, we focus on efficient recovery and practical design. By continually refining our equipment and introducing new technology, we quietly shape the industry—one advancement at a time.

Sponsored Content

Redefining Wire Processing Standards

In nonferrous wire and cable processing, SWEED balances proven performance with ongoing innovation. From standard systems to tailored solutions, we focus on efficient recovery and practical design. By continually refining our equipment and introducing new technology, we quietly shape the industry—one advancement at a time.

While the HITECH Act extends liability to third-party vendors, such as document destruction and records storage companies, it also creates additional opportunities to service clients in the medical industry.