While medical providers are looking for ways to accommodate healthcare consumerization, the market of digital solutions for this sector keeps growing incessantly. In fact, it’s anticipated to cost $ 766.06 billion by 2033.

Since many companies invest in technologies to address patient needs and stay ahead of competitors, they should be aware of the rules and regulations their software has to follow. No doubt that HIPAA is one of the most important requirements to meet when developing a health app.

So what does mobile app HIPAA compliance mean? What does it take to achieve it, and how much do its violations cost? Let’s find out the basics and explore the considerations to take into account while initiating HIPAA-compliant app development.

What Is HIPAA?

What is HIPAA?

Health Insurance Portability and Accountability Act, or HIPAA, is a US statute introduced in 1996 that regulates the flow of healthcare data. Part of this act specifies how personal information processed by healthcare and insurance companies should be protected from fraud and theft.

Among all the rules incorporated in HIPAA, you should pay close attention to five of them. They are:

  • Privacy Rule: Protects patients’ personal medical records by identifying who can access them and how they can be shared.
  • Security Rule: Defines clear security measures needed to protect sensitive data.
  • Enforcement Rule: Provides guidelines for compliance, investigations, and penalties for violations.
  • Omnibus Rule: Ensures that individuals can seamlessly access their health records and makes it transparent how providers will use their personal information.
  • Breach Notification Rule: Requires providers to notify patients about data breaches.

The need for your healthcare software to be HIPAA-compliant is defined by the type of entity that uses the app and the type of data covered by it. To give you more details, we’ll take a look at each of these criteria.

Data

While thinking about health application development, you need to distinguish two types of data in order for your solution to be HIPAA-compliant. They are Consumer Health Information, or CHI, and Protected Health Information, or PHI. Let’s take a look at their core differences.

Attributes

Protected Health Information

Consumer Health Information

Information Personal information, medical records, and payment details General health-related data for public use
Accessibility Shared with a covered entity and secured by a service provider Can be accessed by government and NGOs
Purpose Employed for personalized treatment plans, billing, and other healthcare operations Applied in awareness programs, healthcare planning, and statistics creation
Regulation HIPAA applicable Doesn’t have to be HIPAA-compliant

As you can see, when an app handles personal and medical data, it falls under HIPAA regulation. Let’s take a look at an example to better understand when your product should follow HIPAA and when it shouldn’t.

If you have an application that monitors images containing sensitive data like names, addresses, phone numbers, etc. — HIPAA comes into force. However, if the same app helps study skin diseases by analyzing anonymous images, it doesn’t have to be HIPAA compliant.

Entities

HIPAA regulations apply to all entities that access, produce, process, and store PHI. According to the Privacy Rule, there are two types of entities subjected to it: covered entities and business associates.

Covered entities refer to all healthcare organizations, providers, clearinghouses, and private practices. This type of entity also incorporates pharmacies, nursing homes, and insurers.

Business associates are organizations that collect, store, and handle PHI on behalf of the covered entities. They can include software and cloud service providers, lawyers, or accountants.

Why Is HIPAA Important?

HIPAA plays a vital role for both patients and healthcare organizations. It was enacted to help protect sensitive data and ensure that its processing and sharing are strictly regulated. The act provides important rules related to confidentiality and privacy, defines what parties can share information, to whom and how it can be disclosed.

Therefore, any company considering design and development of an app that deals with health data, whether it is a web application or mobile solution, should clearly comprehend if it has to be HIPAA compliant.

Why is HIPAA Important?

Source: Someecards

HIPAA Benefits for Patients and Healthcare Providers

When it comes to developing a HIPAA-compliant and secure app, you may put in a lot of effort. Yes, it’s truly not an easy walk in the park. However, only by following HIPAA-compliant software requirements can you craft a product that offers plenty of benefits for both patients and healthcare providers. Let’s skim through the core advantages to consider.

Benefits

For Patients

Consumer Health Information

Privacy protection Patient’s data can’t be shared without their approval Ensuring the confidentiality of patients’ health records reduces the risk of legal liability
Data security HIPAA provides peace of mind on individual healthcare information safety HIPAA sets clear rules and standards on how to protect client’s data
Transparency People may request records to see how their PHI is being handled and used By being transparent about patient data management, providers become more trustworthy
Accessibility Individuals may seamlessly obtain their medical records and request adjustments to ensure accuracy Up-to-date patient well-being information empowers providers to deliver more personalized treatment plans
Breach notification Patients receive notifications about breaches By notifying users about data breaches, providers may avoid hefty fines for non-compliance

Risks and Penalties

Where there is a rule, there can be a violation; and where there is a violation, there can be a penalty. It’s hard to underestimate HIPAA compliance software requirements and the importance of an app to follow them, so it’s better to be prepared and know what to expect in case of non-compliance.

Examples of major violations of HIPAA rules include the loss of data, accessing confidential information, or sharing PHI without authorization. The size of fines levied on entities varies from $100 to $50,000 per violation and can reach an annual maximum of $1.5 million.

With that in mind, let’s go further and explore the key tips to build a healthcare mobile app compliant with HIPAA regulations.

Key Features of HIPAA-Compliant Applications

Every healthcare software development project is definitely unique and requires a tailored approach. Here are the core features to incorporate for the robust HIPAA-compliant application development.