The Xceptional Blog

What Are the Basics of HIPAA Compliance?

Written by Natalie | Dec 29, 2022 11:00:00 AM

Failing to adhere to HIPAA regulations can be costly. And while the financial penalties are hefty, money isn't the only loss your business could face if you violate HIPAA regulations. 

In this blog, we’ll discuss the basics of HIPAA and what your IT provider has to do with data compliance – so you can get your business on track to meeting HIPAA requirements today. 

What Is HIPAA Compliance?

Short for the Health Insurance Portability and Accountability Act of 1996, HIPAA is a set of standards that aim to protect patient privacy. However, healthcare providers aren't the only organizations that handle patient information. According to HIPAA guidelines, any company that collects, receives, or shares protected health information (PHI) must maintain compliance.

Apart from covered entities such as hospitals and other medical organizations, these regulations can apply to the following businesses:

  • Companies that process insurance claims for a health plan
  • Law firms whose legal services grant access to PHI
  • Providers that offer managed IT services to covered entities

Why Is HIPAA Compliance Important?

HIPAA gives patients greater control over how corporations use their private information. Not only do HIPAA guidelines establish the steps healthcare providers and others must take to protect the privacy of health information, they also hold those that violate patients' privacy rights accountable.

Since sensitive data is a top target for cyber criminals, more organizations have been subjected to greater regulatory oversight over the past few years. Unfortunately, the same technology that helps businesses collect and manage data can become a HIPAA compliance risk if you haven't taken the proper measures to secure PHI.  

Violating HIPAA requirements can lead to both financial and non-financial consequences for your business, including:

  • Fines and Penalties - Fines for failing to maintain HIPAA compliance range from $100 to $50,000 per violation, depending on the severity of the offense.
  • Data Breaches - The most popular target for hackers is the healthcare industry, with the average total breach cost reaching over $10 million in 2022.1
  • Reputational Damage - 65% of data breach victims lose trust in a company after a breach,2 so your clients may turn to a competitor if you compromise their data.

If your company handles PHI, you need to be confident that your IT systems are HIPAA compliant. Otherwise, you risk facing the repercussions of a data breach or HIPAA violation fine.

 

Stay Ahead of HIPAA Compliance Risks With Xceptional

The experts at Xceptional can help you gain peace of mind with best-fit security and compliance solutions designed to protect your network – and your customers’ sensitive data – at all times.

We carry the HIPAA Seal of Compliance – the healthcare industry’s standard for verification. Our compliance as a service (CaaS) platform is your end-to-end compliance solution. We'll customize our Compliance Manager to address your company’s unique cyber security and compliance needs, from quarterly scanning and assessments to remediation tracking and more. Contact Xceptional today if you’re ready to embrace the Xceptional experience and get started with the tools and expert support you need to keep your business compliant.

Sources:

  1. https://www.ibm.com/reports/data-breach
  2. https://www.centrify.com/media/4772757/ponemon_data_breach_impact_study_uk.pdf