The Health Insurance Portability and Accountability Act (HIPAA) is a U.S. federal law that protects patients’ medical information. According to the Centers for Disease Control, HIPAA is a national standard that defines how healthcare providers, insurers and other healthcare organizations should handle protected health information (PHI).
PHI identifiers can include, but are not limited to, an individual’s demographics, physical or mental health diagnoses, and healthcare providers. Cardinal Digital Marketing further explains that health information can be implied or explicit. Implied health information is assumed, while explicit health information is clearly disclosed.
In programs like the East Tennessee State University (ETSU) online Master of Business Administration (MBA) with a Concentration in Health Care Marketing, students learn about managing and protecting patient information and developing ethical healthcare marketing practices.
How HIPAA Protects Confidentiality
HIPAA mandates protect and ensure the confidentiality and integrity of PHI with strict guidelines aimed at preventing unauthorized uses and disclosures. HIPAA violations occur when PHI is used or disclosed in a manner that violates HIPAA. Violating HIPAA, either intentionally or unintentionally, comes with steep consequences. Depending on the level of negligence, penalties can range from fines to criminal charges. The HIPAA Journal outlines the four categories of violations and the monetary penalties:
- Tier 1: Lack of knowledge or unavoidable violation carries a minimum fine of $137 per violation with a maximum of $68,928 fined
- Tier 2: A violation that the organization should have been aware of but was unavoidable with a reasonable amount of care carries a minimum fine of $1,379 per violation with a maximum of $68,928 fined
- Tier 3: Willful neglect of HIPAA rules but an attempt was made to correct the violation carries a minimum fine of $13,785 per violation with a maximum of $68,928 fined
- Tier 4: Willful neglect of HIPAA rules but no attempt was made to correct the violation carries a minimum fine of $68,928 per violation with a maximum of $2,067,813 fined
For all tiers, there is a maximum yearly penalty of $2,067,813. Criminal penalties include the following:
- Tier 1: Lack of knowledge or reasonable cause (up to one year in jail)
- Tier 2: Acquiring PHI under false pretenses (up to five years in jail)
- Tier 3: Obtaining PHI with malicious intent or personal gain (up to ten years in jail)
Understanding HIPAA and the importance of HIPAA compliance in safeguarding PHI ensures the fulfillment of legal and ethical responsibilities within healthcare settings.
Healthcare Marketing and HIPAA
Healthcare marketing promotes healthcare services for providers and organizations to gain and retain patients. This type of marketing works to improve the health outcomes of the community through outreach programs, advertising, social media and content creation. HIPAA compliance is the heart of healthcare marketing, and there must be a balance between promoting healthcare services and being compliant with HIPAA. These considerations ensure the enforcement of privacy rights and the security of health information.
In marketing, the HIPAA Privacy Rule allows individuals to control how their PHI is used for marketing purposes. The HIPAA Privacy Rule defines what marketing is and outlines when authorizations are unnecessary.
In addition, healthcare marketing must also consider the HIPAA Security Rule, which protects electronic PHI. Knowledge of HIPAA regulations allows healthcare managers to effectively navigate legal complexities, avoiding HIPAA non-compliance, severe penalties, legal repercussions and damage to an organization’s reputation.
Through courses such as Health Care Marketing and Healthcare Marketing Communication, East Tennessee State University’s online MBA Health Care Marketing program prepares graduates to have an in-depth understanding of HIPAA regulations, allowing them to develop strong and effective healthcare marketing strategies.
Learn more about East Tennessee State University’s online Master of Business Administration with a Concentration in Health Care Marketing program.
