HIPAA law consists of regulations that govern healthcare organizations, but why is it essential to comply with them? Because HIPAA compliance not only ensures the privacy and security of patient information, it also protects your practice from breaches and fines and the reputational damage that results from them.

What is HIPAA Compliance?

To be HIPAA compliant, dental practices must follow the standards set forth by the HIPAA Privacy, Security, and Breach Notification Rules. The Office for Civil Rights (OCR) provides guidelines for complying with HIPAA standards, known as the Seven Elements of an Effective Compliance Program. The Seven Elements are measures that OCR has deemed essential to safeguard protected health information (PHI) effectively.

They include:

1. Implementing written policies, procedures, and standards of conduct.
2. Designating a compliance officer and compliance committee.
3. Conducting effective training and education.
4. Developing effective lines of communication.
5. Conducting internal monitoring and auditing.
6. Enforcing standards through well-publicized disciplinary guidelines.
7. Responding promptly to detected offenses and undertaking corrective action.

Failing to follow the guidelines above compromises the privacy and security of PHI and can lead to breaches and fines.

Cost of Noncompliance

The cost of noncompliance emphasizes the importance of HIPAA compliance. When determining the cost of noncompliance, there are several factors to consider. There are immediate concerns such as the security of PHI, and long-term concerns such as your practice’s reputation.

• Breaches: Being victimized by a breach is more common when an organization is not HIPAA compliant. HIPAA compliance and cybersecurity go hand in hand as HIPAA requires organizations to implement advanced security measures to protect PHI. Therefore, HIPAA compliant practices are inherently more secure, preventing breaches. The cost of breaches varies depending on the nature of the breach and how many patients were affected by it.
• Fines: When the OCR investigates practices resulting from a breach, complaint, or other incidents, the OCR looks for the presence of a documented HIPAA compliance program. Failing to have an effective HIPAA compliance program in place can result in HIPAA violations and subsequent fines. When issuing fines, OCR assesses the organization’s level of perceived negligence to determine the fine amount.
• Corrective Action Plans: The OCR also requires negligent practices to implement corrective action plans to close compliance gaps. Corrective actions can be costly to implement, and are subject to approval by the OCR. Corrective actions are meant to prevent further HIPAA violations and incidents from occurring.
• Reputational Damage: When an organization experiences a PHI breach, the breach must be reported to affected patients and the OCR. When a breach affects 500 or more patients, the breach is posted publicly on the OCR breach portal, referred to as the “Wall of Shame.” With an increase in patients researching doctors before scheduling appointments, this publicity could hurt a practice’s chances of growing its business.

Contributed by Compliancy Group

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