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HIPAA THE IMPACT ON HEALTHCARE

Many different things have impacted the medical community in recentyears including technological changes that have facilitated greatercommunications and medical discoveries. From a legislative perspective,the enactment of HIPPA rules and regulations by far is one of the mostimpactful. According to the American Medical Association (AMA), HIPPA"brings the most sweeping changes to healthcare since the creation of Before discussing the changes it is first critical to analyze whatexactly HIPPA is. HIPPA stands for the Health Insurance Portability andAccountability Act of 1996, also known as Public Law 104-191 (HIPPA Group,2002). HIPPA has accomplished the following related to healthcare: * Ensures access to health insurance, and also guarantees portability * Provides continuity of healthcare insurance coverage and prevents and strictly prohibits discrimination * Works to protect confidential health information and medical records * Enables patients to have more control over their records * Self employed persons are allowed health insurance tax deductions * Provides for better healthcare efficiencies


Healthcare organizations have to comply and work toward success orface tremendous fines. ce: HIPPA Group, 2002 HIPPA has affected the healthcare industry in a variety of ways. Onemanner in which it has impacted health providers is in the way they conductbusiness electronically. In addition, to ensuresuccessful compliance, healthcare organizations are starting to realizethat creation of a confidentiality based culture will be necessary toultimately ensure success. Electronic health transactions standards forexample, are now required for all healthcare organizations, as a result ofHIPPA. Healthcare organizations that are currently trying to complywith HIPAA do state that they are facing many challenges. Many healthcare providers are complaining that HIPAA's new standardsand regulations are making their jobs much more difficult. A confidentiality culture is must more likely to supportthe new requirements than one that resists change and privacy. Another change enacted by HIPPA related to E-Business is theestablishment of new requirements that electronic signature standards beutilized in an effort to improve security related to provider, employer andpatient identification. As anyoneknows however, due to security issues and ease of hacker access on theinternet, it has become increasingly important that healthcare transactionsbe monitored from a safety and privacy perspective. Most importantly, one may conclude that HIPPA hasrequired healthcare providers to adopt new privacy and confidentialitystandards particularly related to electronic communications that havecaused many healthcare organizations to change the way the operate. Healthcare organizations must learn to change themindset of not on physicians and practitioners, but also administrators andclerical workers. Organizations that electronically transmit healthcare data will bethe most hard hit by HIPAA standards (Xactimed, n.

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