Health Informatics Law: What You Need to Know

III. Impacts 

Analyze the laws that are in place specifically for trying to prevent such data breaches, and assess the extent to which these laws were violated during this data breach 

Data breaches are a common phenomenon in not only the healthcare sector but also other sectors that must deal with confidential and sensitive information. These data breaches cost healthcare institutions their reputation, credibility, as well as financial losses in the event of lawsuits, sanctions and penalties. The (HIPAA) Privacy Rule establishes the use and disclosure of protected health information (Yaraghi and Gopal, 2018). This law is crucial as it dictates who can use personal health information to ensure that it is not misused. The other law that helps to prevent data breaches in healthcare is The HIPAA Security Rule, located in 45 CFR Part 160. This law establishes standards that are to be maintained in creating, receiving, using and maintaining personal health information of covered entities (Brodnick, Rinehart-Thompson and Reynold, 2017). These laws were violated during the data breach as there were no clear guidelines as to who was supposed to use personal health information in the organizations' database. While there was a flow of health information for healthcare purposes, the identity of the clients was not protected.

Determine the communication plan for notifying the key stakeholders. What expectations are set to ensure these people are notified in a timely and appropriate manner? Be sure to use specific examples from your research. 

In case of a data breach, which exposes health information, a healthcare institution must adhere to HIPAA provisions on reporting breaches. The authority to declare a data breach should be vested on a few individuals with competence and jurisdiction to evaluate evidence. This team is required to notify affected individuals, the Secretary and at times to the media in written form (U.S. Department of Health & Human Services). In doing this, the team must adhere to the HIPAA Breach Notification Rule, 45 CFR §§ 164.400-414. The rule requires a covered entity to notify the Secretary with the exact number of the people affected by the breach (Brodnick, Rinehart-Thompson, and Reynold, 2017). If the entity is uncertain about the precise number, the provision requires the covered entity to make an estimation. The rule establishes that if the breach of unsecured protected information affects 500 or more individuals, the entity the Secretary must be notified within 60 days. If the breach affects less than 500 individuals, the entity should report the breach within 60 days to the end of the calendar year on discovering the breach (U.S. Department of Health & Human Services, nd). The covered entity expects that by notifying the relevant authorities of the breach, its adverse effects may be minimized. Informing the relevant stakeholders on the security breach provides a chance for collaboration in dealing with the aftermath of the breach. The covered entity ensures that it reports the data breach within the stipulated timeline with the hope that the breach will be managed well. There is usually an established response team that establishes the cause of the breach, who is responsible, punitive, and legal measures to be taken as well as future preventive strategies.

Identify the potential non-financial and financial impacts a data breach may have on the organization. How could a data breach impact decision-making, such as financial decisions? 

Data breaches have potential non-financial and financial impacts depending on their nature and scope. The main financial implications associated with a data breach is the fact that a covered entity may have to spend a considerable chunk of its finances in dealing with lawsuits, fines, and penalties. HIPAA offers clear guidelines on the role of these covered entities in ensuing that private health information is secured. These guidelines outline what kind of patient information is secured under the Privacy Rule. This information includes patients’ demographic data relating to the past present and future health plans, health conditions and transactions. The Privacy Rule also outlines the general principles for using and disclosing patients’ information. According to Choi Johnson and Lehmann (2019), this information is sensitive and confidential and if it leaks, it may expose patients to unwarranted scrutiny. Patients who feel that the covered entities have not done enough to protect their information have a right to press charges. Apart from financial impacts, data breaches are associated with non-financial effects such as identity theft. The main non-financial implications are the possibility of losing credibility, as patients will be skeptical that they too would be affected by the breach ((Brodnick, Rinehart-Thompson and Reynold, 2017)). Patients need to be assured that their health information is safe if they are to seek healthcare services in a particular institution. The situation is made worse as Health and Human Services is capable of posting the names of hospitals with major security beaches. In such a case, patients would base their healthcare institution's choice based on the website, which would affect such a hospital's patient population.

Evaluate your organization’s use of the appropriate federally sponsored initiatives in ensuring the provision of the highest level of healthcare quality and safety, and efficiency in keeping data secure. 

The organization is aware of the fact that it must operate within federally sponsored initiatives aimed at ensuring the provision of quality, safe and effective healthcare. These objectives are centered on the need to ensure that the patients are confident of the hospitals' processes and procedures. The hospital focuses on patient-centered care and it is for this reason that it ensures that patients’ data and information are secured. Some of the federally sponsored initiatives that are embraced by the hospital include the Affordable Care Act, Health Data Initiative and the HITECH Act. The Affordable Care Act helps the organization to provide quality and efficient healthcare services as it regulates the health insurance industry. As a result, more individuals from lower economic backgrounds can access healthcare, which has become more affordable. On the other hand, the Health Data Initiative launched by HHS and IOM improves the quality of care as it encourages innovators to raise health awareness by creating applications (U.S. Department of Health & Human Services, 2019). The hospital uses this initiative to reach out to a large number of outpatients who need healthcare services. Finally, the hospital utilizes the HITECH Act to guide its adoption and use of electronic health records. The initiative helps the hospital to secure patient information in line with HIPAA requirements. In this way, the hospital assures its patients that their data is safe which in turn leads to customer loyalty

References

Brodnik, M. S., Rinehart-Thompson, L. A., Reynolds, R. B. (2017). Fundamentals of Law for Health Informatics and Information Management (3 rd ed.) Chicago, IL: Ahima Press.

Choi, S. J., Johnson, E., & Lehmann, C. U. (2019). Data breach remediation efforts and their implications for hospital quality. Health Services Research, 54(5), 971-980.

U.S. Department of Health & Human Services (nd). Breach Notification Rule . Retrieved on 1 February 2020 from https://www.hhs.gov/hipaa/for-professionals/breach-notification/index.html

U.S. Department of Health & Human Services (2019, December 17). The Data Initiative. Retrieved on 1 February 2020 from https://www.hhs.gov/cto/initiatives/data-initiative/index.html

Yaraghi, N., & Gopal, R. D. (2018). The Role of HIPAA Omnibus rules in reducing the frequency of medical data breaches: Insights from an empirical study. The Milbank Quarterly , 96(1), 144–166.