Find out whether your data processing agreements (DPAs) are compliant with the Health Insurance Portability and Accountability Act (HIPAA).

What is HIPAA and who needs to comply?

HIPAA establishes standards to securely handle protected health information (PHI), such as medical records and billing information.

HIPAA applies to covered entities, mainly healthcare providers, and business associates that handle PHI on behalf of covered entities, such as billing companies or IT service providers. Though it operates in the United States, it also binds any foreign entities that handle PHI of U.S. citizens or residents.

HIPAA requirements are based on three principles:

  • Security and privacy rules in HIPAA outline specific safeguards to protect PHI in all forms.
  • Individual rights, such as the right to access their medical records and the right to request corrections to their PHI.
  • Breach notification to affected individuals, the Department of Health and Human Services (HHS), and possibly the media, in the event of a data breach.

Compliance with HIPAA offers benefits organisations by ensuring prevents legal penalties, and demonstrates commitment to patient data privacy and security.

DPAs in a HIPAA context

DPAs are crucial for organisations handling patient information. Think of a DPA as a legally binding handshake between you (the controller) and the third-party vendor handling the personal information on your behalf (processor). It should clearly spell out how your organisation will handle PHI to protect their privacy and ensure HIPAA compliance.

Why are DPAs essential in the healthcare world?

Data controller vs. processor

The DPA sets out two crucial roles in the data processing relationship: the controller (who decides how the data is used) and the processor (who handles the data). Clearly establishing these roles prevents confusion and liability concerns.

International partnerships

If you collaborate with foreign partners who access PHI, a DPA clarifies the respective roles, responsibilities, and data security measures for lawfully processing personal information.

Safeguards and compliance

It outlines specific data protection measures, including encryption, access controls, and breach notification procedures.

Quality assurance

The DPA ensures consistent data handling practices and maintains high quality standards.

Staying on the right side of the law

Failure to comply with HIPAA can lead to hefty fines and legal trouble. A HIPPA-compliant DPA helps mitigate risks and demonstrate your commitment to data security and safeguarding protected health information.

Actions to take next

  • Identify potential risks in your organisation by conducting a data protection impact assessment.
  • Ensure all employees handling PHI understand their responsibilities by training your team through awareness and compliance workshops.
  • Get governance right by developing and implementing clear policies and procedures.
  • Secure all forms of PHI by implementing technical, administrative and physical safeguards.
  • Review and update your DPA by conducting periodic audits and updating policies and procedures based on changes in regulations or your practices.
  • Or you could ensure your DPA is HIPAA-compliant by asking Michalsons to do it for you.