HIPAA is a key component of your practice’s day to day policies. However, if you are not following your practice’s policies and procedures, your practice may land up in serious trouble.
The HITECH Act now requires the US Department of Health and Human Services (HHS) to periodically audit covered entities and business associates subject to HIPAA privacy and Security rules.
Gear up for HIPAA – know what to expect when the auditors come calling!
All covered entities and business associates are targets of an audit. A HIPAA audit basically aims to determine whether you have all the HIPAA-required policies and procedures in place.
Here’s what you can expect in case of an audit:
- You have to show that you have been using these policies and procedures.
- You will need to provide a mountain of documentation that auditors will ask for – be it training policies, materials and rosters to your security incident policy and security incident report. So be prepared for it.
- You will get only three weeks’ notice to procure the substantial documentation and gear up for the on-site audit.
- Watch out: Auditors can randomly choose and interview any staff; be prepared or bear the consequences.
- The audits will be more specific and focus on some problem areas such as a) whether you have an updated NPP b) compliance with the new privacy rights and restrictions.
The HIPAA Omnibus final rule introduced and strengthened a new penalty structure. It also introduced new definitions pertaining to HIPAA violations. Under the new penalty structure, you need to know the definitions for three terms: Reasonable Clause, Reasonable Diligence and Willful neglect. Get the detailed definitions HERE.
Moreover, willful neglect violations must be looked into and penalties are compulsory. The HITECH provisions allow corrective actions, even if there is no penalty. Note: Now your state Attorney General can bring HIPAA actions.
How HITECH §13409 apply to individuals
Under Wrong Disclosures (HITECH §13409), such breaches can be applicable to individuals and are now being used in criminal cases. Moreover, civil lawsuits covering HIPAA violations are becoming more commonplace.
Penalty under the new tiered penalty structure
Furthermore, effective for incidents post February 17, 2009, you are now facing steeper penalties for HIPAA violations. The new penalty for all violations of a similar type in one calendar year is $1.5 million. Tier 1: $100 to $50,000 per violation, Tier 2: $1,000 to $50,000 per violation; Tier 3: $10,000 to $50,000 per violation; Tier 4: $50,000 per violation.