New HIPPA rule extends penalties to hospital, physician partners

The federal Department of Health and Human Services released yesterday a new rule that updatesthe Health Insurance Portability and Accountability Act, or HIPAA, with the more stringent privacy and security measures (Source: "New rule: Hospital, physician partners face penalties for privacy leaks," Modern Healthcare, Jan. 17, 2013).

“Much has changed in healthcare since HIPAA was enacted over fifteen years ago,” said HHS Secretary Kathleen Sebelius said in a news release coordinated with the posting of the 563-page rule in the Federal Register. “The new rule will help protect patient privacy and safeguard patients' health information in an ever-expanding digital age.”

Among the components of the guidelines are new rules on the use of patient-identifiable information for marketing and fundraising, and an expansion of direct liability under the law to the so-called “business associates” of hospitals and physicians and other “HIPAA-covered entities.” Those associates might include a provider's healthcare data-miners and health information technology service providers.