HIPAA:Impact on Infgormation Technology

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Running head : HIPAA : Impact on Information Technology

HIPAA : IMPACT ON INFORMATION TECHNOLOGY

HIPAA : Impact on Information Technology

Introduction

The Health Insurance Portability and Accountability Act (HIPAA ) were signed into law in 1996 with the original intent of protecting health insurance information when workers changed or lost their jobs . As the internet evolved in the mid 1990 's HIPAA requirements coincided with the internet revolution and offered an easy , available vehicle to enable the digital exchange of healthcare information . But the idea of passing

br individual health records across the public Internet prompted concerns about the privacy and security of patient-identifiable information Protected Health Information (PHI ) and HIPAA rules were further refined to include a security standard for sharing PHI over the Internet (Authora Inc , 2003

In enacting HIPAA , Congress mandated the establishment of Federal standards for the privacy of patient 's identifiable health information When it comes to personal information that

moves across hospitals , doctors ' offices , insurance companies , and state lines , our country has relied on a patchwork of Federal and State laws Under this patchwork of laws , personal

health information could be distributed , without either notice or authorization , for reasons that had nothing to do with a patient 's medical treatment or reimbursement . Health care providers have a strong tradition of safeguarding private health information . However , in today 's world , the old system of storing records in locked filing cabinets is not enough . With information broadly held and transmitted electronically , the HIPAA Privacy Rule provides clear standards for the protection of personal health information (Medcenter One Health System 2003

The HIPAA regulations apply to all communication that is stored or transmitted electronically , or that has been stored or transmitted electronically in the past . Media includes , but is not limited to computer databases , tapes , disks , telecommunications , fax , Internet and networks

Impact on Healthcare Cost

One of the major factors driving up the cost of healthcare is the growth of healthcare providers . Expansive healthcare systems that offer acute care hospitals , specialty facilities , clinics , labs , physician practice groups , and other services are becoming prevalent . While these systems provide many benefits to the communities they serve , they also require a great deal of money to fuel their growth - and ultimately place upward pressure on the costs of many medical services

The health IT market in the United States is expected to stagnate this year with a slight decline in spending , according to recently released figures from market research analyst firm Frost Sullivan . Oddly enough , the drain of institutional resources away from commercial IT solutions toward training and staff to ensure compliance with HIPAA (the Health Insurance HYPERLINK "http /www .eweek .com /article2 /0 ,1895 ,1639185 ,00 .asp " \l " \t "_blank Portability and Accountability Act ) is largely to blame , according to Amith Viswanathan , a health care industry analyst at Frost

He said he expects U .S . health IT spending to shrink from 36 .7 billion to 36 .2 billion this year . Payer and health care institution spending are each expected...