In 2009 and 2010, HIPAA underwent, and is continuing to undergo, significant changes that have a direct impact on the operations of health care providers, insurers, and clearinghouses (collectively “Covered Entities”) and, even perhaps more dramatically, on vendors (e.g., accountants, lawyers, consultants) who receive patient information. We summarize below the requirements and some of the practical impact these HIPAA changes have on Covered Entities and Business Associates.

The Health Information Technology for Economic and Clinical Health Act (the “HITECH Act”), signed into law on February 17, 2009, was enacted to promote the implementation of electronic medical records by certain health care providers through the use of $19 billion of incentive payments and various penalties. The HITECH Act also imposed substantial revisions to the privacy and security requirements of HIPAA.

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