Software Vendors Now Have Steeper Fines For HIPAA Breaches
Your software vendor will face steeper penalties for HIPAA breaches, as recent changes to the regulations will increase the maximum penalty for negligence-related incidents from $250,000 to $1.5 million per violation. The U.S. Department of Health and Human Services released the rule to toughen up on noncompliance of companies that provide electronic health record, billing and transcription services, including contractors and subcontractors, which are "business associates" of providers.
The final rule, which takes effect on March 26, will also strengthen the Health Information Technology for Economic and Clinical Health Act’s breach notification requirements by specifying when entities and their BAs must report to HHS any breaches of unsecured protected health information, according to NAHC. HHS may also change the threshold that a BA uses to determine whether a breach could harm patients and if the company must report that breach. (For more on the new HIPAA breach rules, see story on page 28.)
