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Understanding the Implications of HIPAA Violations
Understanding the Implications of HIPAA Violations

Patient health information is sensitive. It can save a life. Unfortunately, in the wrong hands, it can also be used for identity theft and cause psychological damage to patients.


U.S. federal law HIPAA (Health Insurance Portability and Accountability Act) contains stringent regulations meant to prevent the improper handling of patient information. HIPAA was introduced in 1996. Its purpose was very specific—to protect patient privacy by holding healthcare facilities responsible.


Any healthcare organization that wants to keep protected health information safe must follow HIPAA rules. In contrast, HIPAA violations result in data breaches, medical license revocations, and penalties.


Read on to understand the seriousness of HIPAA violations and the consequences of non-compliance.


Why are the HIPAA Regulations Important?

HIPAA's initial aim was to ensure employees continued benefiting from health insurance coverage even when they switched jobs. It has since been expanded to include how patient data can be accessed and shared and to protect patient privacy. And it is for a serious reason:


With today's technological advancements, data breaches have plummeted in most sectors. However, the healthcare industry is among the most vulnerable sectors, with 715 data breaches in 2021.


In one of the worst reported cases of data breaches in the US, Anthem Inc. paid millions in fines for violating HIPAA regulations. This followed the exposure of sensitive PHI belonging to 79 million people.


Besides protecting against potential data theft, HIPAA regulations also offer patients control over their personal information.


Consequences of the HIPAA Violations

The consequences of a health care provider's failure to comply with HIPAA are severe enough that every provider should adopt the law's policies. The most serious results of HIPAA violations include:


Damage to Your Organization's Reputation

Your reputation is extremely important in the field of healthcare provision. If a HIPAA violation exposes or loses patient data, your reputation will suffer.


Your patients do not want to experience feelings of insecurity or embarrassment in relation to their private information, which is why they will switch to a different healthcare provider. This will also bring unwanted attention to your medical center and damage its reputation.


There is a good chance your business will not bounce back quickly from losing patients' trust. For the sake of your company's reputation, be sure to adhere to HIPAA regulations regarding the protection of patient data.


Compromised Data Security

To stay ahead of cybercriminals, your health organization must comply with HIPAA regulations. How does HIPAA help with data security measures?


The HIPAA has strict physical, administrative, and technical controls to secure patient health information.


The measures are to ensure no unauthorized access or tampering with patient information. The requirements include encrypting your data, installing software, and using passwords and pins.


Additionally, HIPAA regulations focus on regular risk assessments to detect potential risks to the security of Protected Health Information (PHI).

But with HIPAA violations, you risk compromising personal information, including patients' names and social security numbers, to hackers.


Legal Penalties

Another implication of HIPAA violations is legal penalties. The penalties include monetary and even jail time, depending on the extent of the offense.


The legal penalties for HIPAA non-compliance are either civil or criminal.


Under civil penalties, unknowingly violating HIPAA regulations has penalties ranging from USD 100 to USD 50,000. If the violation is willful, but you correct it, it will cost you from USD 10,000 to USD 50,000.


However, if violations remain uncorrected after 30 days, they have a penalty ranging from USD 50,000 to a maximum of USD 1.5 million.

Conversely, criminal cases involve imprisonment in addition to fines. For instance, willful disclosure of health data results in USD 50,000 in fines and one year of jail time.


Also, illegally obtaining patient information leads to USD 100,000 in fines and five years in jail. Using the PHI for sale or harm attracts up to a USD 250,000 fine and ten years in prison.


Loss of Confidence in Healthcare Providers

HIPAA violations also adversely affect patients. When patients disclose personal information to a healthcare provider, they expect it to remain confidential.


However, data breaches can result in losing trust and confidence in the healthcare system. For instance, Dr Frank Alurio admitted to disclosing patient information to a third party for personal gain.


Although the doctor was charged, such HIPAA violations undermine healthcare providers. As a result, patients lose confidence in healthcare providers and limit the information they provide to doctors. Consequently, that affects the quality of healthcare patients receive.


Bottom Line

The consequences of HIPAA violations are both expensive and damaging. And the implications above are a reminder of the significance of maintaining patient data privacy.


By implementing strict HIPAA guidelines, you can protect your patients' information and avoid legal penalties while maintaining patient trust.


HIPAA compliance does not have to be a hassle. Maintain your data security and reputation with iDox.ai. We streamline your HIPAA compliance so that you can focus on delivering uncompromised care to your patients.


Leverage expertise from our HIPAA compliance experts and demonstrate your commitment as a responsible health organization.

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