Formed in 1996, the Health Insurance Portability and Accountability Act (HIPAA) was formed to protect patient health information due to the increase of cybersecurity threats and digital storage mediums that practices were gradually switching over to. HIPAA provides federal protections for personal health information and it also gives patients rights to their protected health information. HIPAA also requires companies to become HIPAA compliant by implementing a variety of different safeguards to protect patient information.
HIPAA violations are punished with terminations, sanctions from professional boards and even criminal charges. It depends on the nature of the violation, the harm caused by the violation and also if there was action taken to prevent or report it in a timely fashion. Criminal penalties for HIPAA violations can be severe and the minimum fine for willful violations of HIPAA is $50,000. This could seriously hinder your healthcare business, and also destroy any faith that your customers had in your healthcare or medical practice.
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