Proposed HIPAA Rule Would Fine Health Provider Partners Up to $1.5M for Privacy Violations

A proposed federal rule would mean steep fines for U.S. companies that partner with hospitals if they disclose private patient information, according to a report by Reuters.

Currently, the companies that regularly handle private health records, including customer service contractors and billing companies, are not liable for information breaches. The proposed rule would fine companies up to $50,000 per violation and $1.5 million a year.

The rule would extend the reach of the Health Insurance Portability Act, which protects patient privacy and sets security standards for EHR. The Department of Health and Human Services, which issued the rule, will take feedback over the next few months.

Read the Reuters report on the proposed federal rule on private patient information.

Read more Becker's coverage on recent healthcare IT rulings.

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