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Health Providers Facing Stiff HIPAA Regulations

‘Business Associates’ Provision

HIPAA will directly cover “business associates” of covered entities beginning in February 2010. Examples of entities that might fall under this newly-regulated category are vendors to the health care industry, such as IT providers, billing and phone services, third party administrators of health plans, and document or data storage companies. “We’re getting a lot of calls from business associates,” said Fehn. “It’s the first time they’ve had to take [HIPAA] seriously. Before, it was just a contractual obligation [with the covered entity]. Now they will be subject to penalties.”

Next: The Physicians Corner

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