Tag Archives: Health Insurance Portability Accountability Act (HIPAA)

Non-Compliance is Very Expensive

For enterprises and businesses, compliance is a term that shows the company is following laws and regulations concerning business, personnel and clients. For businesses, compliance is not optional. In fact, it is obligatory for organizations and divergence to this act results in form of penalties.


Accounting scandals of a number of corporations made it necessary to establish an act therefore the Act Sarbanes Oxley was passed against such companies. As a result, non compliant enterprises have to face penalties such as loss of D & O insurance, imprisonment, heavy fines and lose exchange listing. It is given that investors do not have an interest to invest in non-compliant organizations. In case, CFOs or CEOs give fake certifications, they will face charges of one million dollars fine for their un-willful wrong doing. On the other hand, charges for willful doings are up to five million dollars. In addition to penalties, CEOs and CFOs can be imprisoned for up to ten to twenty years based on the evidence presented.


HIPAA is an act concerning health insurance portability & accountability. HIPAA is applied to service providers dealing with health care departments. The act also equally applies to health care associates. If service providers are unable to meet the demands of HIPAA Act, they will be fined severe penalties. Health care providers are castigated when they ignore standard of HIPAA. In such cases, the Secretary has the right to charge $100-$50,000 for each violation, up to a maximum of $1.5 million for identical provisions during a calendar year.


Another important part of HIPAA is its relation to personal health information (PHI). When sensitive information such as PHI of patients is disclosed, health care providers are penalized for their carelessness. In case this infringement is willful, up to $50,000 penalty, with a year imprisonment or both is imposed on the wrong doer. Conversely, if the violation is done with false pretences, an amount of $100,000 is imposed, with five years imprisonment or both. However, if such violation is for to get commercial benefits, a fine up to $250,000, with 10 years of imprisonment or both is imposed.


Punishments related to PCI-DSS and data protection act impose charges of up to $500,000 for data breaches. Non-compliant companies not only get charged fines, but also have to face long lasting penalties, such as credit card activity shut down, loss of business, staff cost during recovery process, detailed and increased audit requirements, charges of printing clients’ notification, printing costs, emailing costs, as well as loss of clients’ trust.


Controllers of non-compliant data are also punished by Data Protection Act. They are required to get registration and follow data protection act to become qualified for processing sensitive information of customers. If data controllers do not get registration, they can face litigation and penalties. On the other hand, data controllers and agents who misuse personal client information in other ways that are not mentioned in the act, they could be charged under the civil or criminal act sanctions.


In short, non compliance can be terrible and costly for companies.

Managed Service Providers and HIPAA Misconceptions

HIPAA is health insurance portability accountability act that checks how covered entities or healthcare providers maintain health sensitive information that is saved in their systems. Regulations are terrifying for service providers, as they are unaware of key factors. What are the responsibilities of service provider while giving service to healthcare department? When audit team finds compliance issues, who is liable to pay the fines? In this article, some of the misconceptions against HIPAA and MSPs are dispelled to bring to light the reality.

Complicated HIPAA Requirements
It is often assumed that requirements are tricky and cannot be understood easily. In fact, requirements are clear-cut and anybody can access them at government website, www.healthit.gov. It is good to learn more about HIPAA by using online services; however, it is better to work under guidance of HIPAA specialized third party. Basically, they support you and discuss various HIPAA aspects to make you HIPAA compliant. Web portal with tools, checklist, and online repository is provided with many other applicable documents. There are many third parties that offer their services to resell and in the process allow you to increase your profit.

Advanced Healthcare Needs
Healthcare practices have requirements which are similar to other businesses. In reality, healthcare department differs from other kinds of businesses in two ways only. First, there is no any tolerance for downtime, as lives can be lost. Secondly, they demand latest security system for getting information, as they keep record of highly sensitive information of patients. If these two factors are put aside, healthcare department works like any other business. When mandate of HIPAA is properly understood, MSPs will get to know that the requirements are not complicated at all.

No Rewards
It is one of the misconceptions that IT providers do not get reward for their services in healthcare industry. In fact, HIPAA compliant service providers get many benefits. It is a profitable system and gives more opportunities to IT providers, who are able to manage HIPAA compliance.

When managed service providers have close contact with their clients, they understand what the clients’ technology demands and develop more confidence to work efficiently. MSPs get benefits as clients have confidence in their service and provide them more opportunities to get new services.

As an MSP, have you ever considered listing the benefits you will be offered in the healthcare industry if you provide HIPAA compliant solution? In your area, how many service providers are specializing in HIPAA compliance?

In healthcare industry, there are a lot of misapprehensions against HIPAA. Reality is far from misconceptions, as it is profitable path where more opportunities and more references are waiting for you. In-depth understanding of HIPAA requirements will make service provider as HIPAA compliance champions. If you become an expert and manage HIPAA, you will have dominating position and more opportunities coming your way than other MSPs.

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