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The Importance of Data Privacy in Healthcare

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Introduction to Data Privacy in Healthcare

Data privacy has become a much greater problem for all businesses in recent years. Data privacy has become increasingly important, particularly for firms serving the health industry.

Healthcare providers must ensure that patient data is correctly managed in order to foster a culture of trust and openness with patients while adhering to rigorous data privacy and regulatory requirements. Data privacy in healthcare is continually developing, with rules and regulations being revised on a regular basis. Patients receive the data privacy they need and demand in this manner. We have detailed the most essential data privacy policies adopted in the healthcare business, why these practises are vital, and how data privacy may be pushed to the next level in this post.

What is Data Privacy in Healthcare

Trust is a vital component of the healthcare system. Patients must have faith that the persons and organisations delivering medical treatment are looking out for their best interests. When patients visit a doctor, they frequently tell information about themselves that they would not discuss with anybody else. They must be satisfied that their healthcare professional will not reveal such information to anyone else — inquiring family members, pharmaceutical firms, or other medical providers — without the patient’s express agreement.

On a wide scale, trust between patients and healthcare professionals is important. Patients are more likely to seek treatment or follow their doctor’s advice if they believe their information will be kept private. Following the advice of a healthcare expert can help decrease the spread of certain diseases and lower the pressure on the healthcare system as a whole.

Why is Data Privacy Important in Healthcare

For various reasons, data privacy in healthcare is crucial. Keeping patients’ information private and secret promotes trust, which benefits the entire healthcare system. Along with assuring patients’ continuous access to treatment, there are other reasons why your healthcare organisation should do all possible to ensure the privacy of your patients’ health information.

1. Avoid Non-Compliance Penalties

Rules and regulations governing patient privacy are in place for a purpose, and violation is taken severely by the government. A company that commits a violation will not be able to shrug its shoulders and claim ignorance of the regulations. Penalties for noncompliance vary depending on the severity of the problem. If a healthcare organization’s individual employee is accountable for the breach or other privacy problems, the employer may deal with them directly. This might imply that the individual is fired or suspended from their employment for an indefinite amount of time.

If the violation occurs throughout the organisation, the sanctions might be more severe. Fines, civil penalties, or, in severe situations, criminal charges may be imposed.

Implications of non compliance of data privacy laws and regulations in healthcare industry

The nature of the offence has a considerable impact on how an individual or organisation is punished. When assessing the sort of punishment that may apply, four tiers must be considered.

Tier 1 Violations

Tier 1 violations are typically the result of an unintentional error on the part of the covered entity. Often, even if the entity had followed the regulations, it would not have been able to prevent the violation. Typically, the organisation is unaware that a tier 1 infraction has occurred.

A tier 1 offence normally has a minimum punishment of $100 and a maximum fine of $50,000. If this sort of infraction happens and the entity is unaware of it or could not have prevented it, the fee may be waived.

Tier 2 Violations

Unlike Tier 1, Tier 2 infractions are ones that a company should have known about but couldn’t prevent, even with particular steps. Tier 2 violations are punishable by fines ranging from $1,000 to $50,000.

Tier 3 Violations

Coming to Tier 3, here infractions arise as a result of intentional disregard for the regulations. Willful neglect occurs when an entity deliberately and actively fails to follow the rules and regulations. Willful neglect happens when a healthcare organisation does not deliver a copy of its privacy practices to a patient when they come in for an appointment, instead of expecting the patient to get that information on their own. Another example of intentional negligence is when a covered entity employee leaves patient information open on their laptop when they are not at their workplace.

Organizations that have committed Tier 3 infractions have sought to rectify the situation. As a result, penalties are greater than for tier 1 or 2 offenses but lower than for tier 4 offenses. The lowest fine is $10,000, while the maximum fine is $50,000.

Tier 4 Violations

Tier 4 violations arise as a result of purposeful carelessness, and the organisation makes no attempt to fix it. For example, an institution may continue to refuse to provide patients with a copy of its privacy practices, or an employee may continue to leave patient information exposed. Tier 4 infractions are punishable by a fine of at least $50,000.

2. Criminal Violations

A violation may be treated as a criminal offense rather than a civil infraction in some instances. The penalty for criminal infractions is harsher than the penalties for civil violations. The Justice Department prosecutes criminal breaches of the Health Insurance Portability and Accountability Act (HIPAA).

There are criminal implications if the violations of data privacy in healthcare is severe.

Criminal infractions, like civil breaches, are classified into three categories. Violations such as knowing disclosure of personal health information are included in the first rung. The punishment is a $50,000 fine and up to a year in jail. The second criminal layer deals with crimes committed under false pretenses. A fine of up to $100,000 and up to five years in jail are possible penalties. Violations with the intent to use, transfer, or profit from personal health information are classified as the third and most serious criminal category. The fine is up to $250,000 and ten years in jail.

3. Build trust with customers and patients

A patient is likely to provide very intimate details to a doctor that they would not reveal to others. It is vital for a patient’s trust in their physician that any health-related information be kept secret.

The issue of trust manifests itself both on an individual and institutional level. Patients must be satisfied that medical information, such as test results or diagnoses, will not be misused. On a broader level, consumers want to know that the healthcare business is looking out for their best interests in general.

Trust would be eroded if healthcare institutions become renowned for divulging facts about their patients, such as sharing test findings with people’s employers or providing pharmaceutical firms data about individuals for marketing purposes. People may be less inclined to seek medical attention when they have a health problem. Delaying diagnosis and treatment might make it more difficult to cure or treat an illness. It can also raise the likelihood of an infection spreading throughout a community.

Ensuring patient privacy also serves to remind individuals of their human rights. According to the Universal Declaration of Human Rights, everyone has the right to privacy, and laws should defend against any intrusion into a person’s privacy. Keeping people’s health data private reminds them of their basic human rights, which improves trust between patient and provider.

Conclusion

As digitalization increases, data breaches and cyber-attacks have grown much more regular, and patient information is now more vulnerable than ever. As a result, the greatest level of data privacy is crucial in healthcare services. Without HIPAA compliance, not only are your patients at danger of breaking the law, but your firm might face serious criminal charges and fines.