Healthcare Compliance is HIPAA Compliance

There was a time, not so many years ago, whenregard to how changes affect security and
the Compliance department of a hospital was anprivacy. Yet, as more and more health
adjunct of the Office of the Medical Director, or,information was created, stored and transferred
perhaps, the General Counsel. Perhaps the Riskelectronically, the hospitals and medical practices
Manager had a Compliance hat she wore whenestablished many offices like the office for a
the occasion demanded. Sure, Medical Recordsposition of Chief Information Security.
had compliance responsibilities, but they mostlyThis trend was given a significant boost in 2004,
comprised making sure the appropriate formswhen President George W. Bush issued an
were completed (such as Operative Reports, orExecutive Order setting in motion a national
Discharge Summaries).transition to an interoperable electronic health
In the late 1990's, the trend toward digitization ofrecord system by 2004. Funding for this initiative
electronic health records raised new health carewas established on a regional basis with grants in
compliance concerns: privacy and security. HIPAA,legislation established by Congress (Hillary Rodham
which is an acronym for the Health InsuranceClinton was a sponsor of one of the first bills).
Portability and Accountability Act of 1996, did notThe Office of National Coordinator of Health
originate in health care compliance, at least notInformation Technology was established in 2004,
directly. The focus was portability. The goal ofbut there was little coordination because regions
HIPAA was to allow a company's employees toof the country were slow to adopt the new
move from job to job without their healthtechnology, in light of the challenges of hospital
insurance being affected as a result of denials ofeconomics (thin margins, slow reimbursements,
enrollment because of preexisting conditions. Yet,etc.). Medicare stopped taking paper claims
HIPAA lawyers (yes, the term was coined duringsubmissions, but there was still significant
this time) realized that health insurance companiesresistance among care givers to give up the pen
had to perform certain actuarial calculations inand paper.
order to assess risk and set premiums, and, toIn February, 2009 legislation was passed which
that end, they had to review the claimswould almost require every Risk Manager and
experience. The only practical way to do that wasCompliance Officer to have at least a rudimentary
to review the codes used for those claims.knowledge of HIPAA law, as it pertained to
The problem is that these codes are notelectronic health records. As part of the American
standardized. Every state has their own set ofRecovery and Reinvestment Act Congress
codes. This incited aides to the Congress andpassed Health Information Technology for
Dept. of social services to create a single, unifiedEconomic and Clinical Health (HITECH). In a reprise
set of claims codes. Yet, as with most thingsof the concerns which led to the implementation
legislative, this begat another concern: thisof the HIPAA Privacy and Security standards,
constant transfer of data meant that there wasHITECH did three things that will change the daily
the possibility of huge security holes whereinactivities of Risk Managers, hospital counsel,
unscrupulous individuals or businesses could grabPrivacy Officers and IT and Security Officers. The
data and use it for nefarious purposes. As afirst thing it does, is provide $30 billion to
result, DHHS allowed for comments about medicalincentivize the transition of health record systems
privacy issues. They received nearly 40,000that are interoperative. The law, enacted on Jan.
comments about health information that had been13,2010, establishes criteria for access to those
mishandled with regard to its privacy. Thesefunds, allowing only those who can exchange data
stories led to the HIPAA Privacy Rule, in whichin an accurate and secure manner. In addition to all
criteria for use and disclosures of medicalthat, the third way in which it affects the
information were established. Soon after, therehealthcare industry is that it requires that all
were a number of rules instituted that dealt withinformation is accessible in a way that is
the manufacturing of, the storage of, and theconsistent and buttressing old HIPAA privacy and
ultimate disclosure of protected health information.security standards. Such a mandate is made even
The combined Rules exceeded 600 pages, andharder, however, by the fact that HIPAA rules
thus a category of healthcare counsel known aswere expanded and strengthened as a result of
"HIPAA Law" was born.the act.
Since then those who know HIPAA law hasAs hospital staff are made aware of these new
become almost a cottage industry within the arearegulations, despite being in the middle of a
of healthcare law. As Healthcare law has becomerecession, there is no doubt that lawyers will we
more robust, and areas like healthcare compliancebe called upon by hospitals. Healthcare compliance
have been added, lawyers have had to learnwill truly become HIPAA compliance.
more and more about the industry especially with