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Why HIPAA Compliance Is Important for Your Business

Why HIPAA Compliance Is Important for Your Business

Businesses across all industries are expanding their products and services while modernizing their offices. Who would have thought that you’d need a legal ruling from 1996 to keep your business at the forefront of innovation? If you’ve been wondering why HIPAA compliance is important for your business, you’ll want to think about the type of company you run and its future.

Know About HIPAA

The Health Insurance Portability and Accountability Act (HIPAA) protects your medical records and personal identification. The law’s main components are the privacy rule, the security rule, and the breach notification rule. HIPAA sets rules for how an entity can store medical information, limits how certain entities can use it, and mandates that companies inform people if a breach occurs.

Know the Omnibus Rule

Before 2013, only medical personnel and insurance companies had to be HIPAA compliant. Then, the Department of Health and Human Resources instated the Omnibus Rule. This ruling requires HIPAA compliance for business associates of the healthcare industry. Professions and roles that would require HIPAA compliance include:

  • Analytics companies that process medical data
  • Human resources employees of companies that directly provide health insurance
  • IT professionals providing tech support for medical providers
  • Web developers for hospitals and medical centers

Many products that improve collaboration in healthcare like two-way radios, online care services, and lifestyle tracking apps are also becoming HIPPA compliant.

Avoid HIPPA Penalties

Businesses that fail to meet HIPAA compliance or who experience a breach are subject to fines as determined by the act. The maximum penalty is $1,500,000 per year. If someone reports your company to the Office of Civil Rights, you may be subject to an investigation. Ensure that you and your employees are always following the latest HIPAA guidelines so you can avoid conflicts and fines.

Bring in New Customers

Becoming HIPAA compliant means you can start doing business with companies in the $3 trillion healthcare industry. Most hospitals and doctors’ offices use electronic services and need a company that provides the best product for them and their patients. Prepare your business for these types of clients by ensuring your products and employees are HIPPA compliant.

Depending on the nature of your vocation, you may find many reasons why HIPAA compliance is important for your business. Expanding your offerings and avoiding fines is critical to your bottom line while keeping up with industry standards is essential to your brand’s ethics and values.