HealthCare Data Security

HealthCare Data Security: What Is It and Why Is It Important?

There are many rules relevant for merchants operating within the healthcare industry that they need to ensure they are complying with. Healthcare data security refers to the measures put in place to protect sensitive information related to healthcare, such as medical records, personal information, and payment details. In the digital age, securing healthcare data is crucial to ensure the privacy and security of patients and to prevent data breaches that can lead to significant financial and reputational damage. In this article, we will explore what is healthcare data security, why securing healthcare data is important, what is HIPAA data security, why that is important, and what should businesses be doing.

What is Healthcare Data Security?

The number of healthcare data security breaches hit an all-time high in 2021, reaching 712 incidences, up by 11% from the year prior and an increase of nearly forty-fold since 2009, according to the research firm, Statista[MF1] .

Healthcare data security encompasses a range of measures designed to protect sensitive information from unauthorized access, use, or disclosure. These measures may include physical security, such as locked cabinets and restricted access to data centers, as well as technical measures, such as encryption, authentication, and secure data transmission protocols.

Healthcare data security also involves processes and procedures to ensure the confidentiality, integrity, and availability of healthcare data. This includes access controls to prevent unauthorized access, regular audits and reviews to detect potential vulnerabilities, and disaster recovery plans to ensure the availability of data in case of a disaster or cyber-attack.

Why is securing healthcare data Important?

There are several reasons why securing healthcare data is critical. The primary reason is that it is the law of the land. However, there is a financial element to this. According to an IBM report[MF2] , healthcare data security breaches end up costing $10 million for each attack. Some specific reasons why securing healthcare data is important include:

  • Patient privacy: Healthcare data includes sensitive information about patient’s medical history, treatment plans, and personal information. Protecting this data is crucial to ensure the privacy of patients and to maintain their trust in the healthcare system.
  • Legal and regulatory requirements: In many countries, some laws and regulations govern the handling and protection of healthcare data. For example, the Health Insurance Portability and Accountability Act (HIPAA) in the United States sets standards for the protection of healthcare data and imposes significant fines for non-compliance.
  • Financial implications: Data breaches can have significant financial consequences for healthcare organizations. In addition to fines and legal costs, data breaches can also lead to a loss of customer trust, which can lead to a decrease in revenue and an increase in operating costs.
  • Reputational damage: Breaches resulting from the failure to secure healthcare data can also damage the reputation of healthcare organizations, leading to a loss of trust and credibility. This can be especially damaging for small or specialty practices that rely on their reputation to attract patients.

The United States has several laws related to the digitization of healthcare records. One of the most significant laws in this area is the Health Insurance Portability and Accountability Act (HIPAA), which sets standards for the protection of electronic health information. HIPAA requires that covered entities, such as hospitals, clinics, and healthcare providers, implement safeguards to ensure the confidentiality, integrity, and availability of electronic health information.

In addition to HIPAA, there are several other laws and regulations related to the digitization of healthcare records in the United States, including the 21st Century Cures Act, the Health Information Technology for Economic and Clinical Health (HITECH) Act, and the Office of the National Coordinator for Health Information Technology (ONC) Health IT Certification Program. These laws and regulations establish standards and guidelines for the use of electronic health records and other health information technology, as well as programs to support the adoption and use of these technologies by healthcare providers.

Then there is also The American Recovery and Reinvestment Act (ARRA) of 2009. The legislation included provisions to support the development and adoption of health information technology, including electronic health records (EHRs). The goal of these provisions was to improve the efficiency and effectiveness of the healthcare system by promoting the use of EHRs and other health IT tools.

Similarly, many countries are trying to implement the digitization of healthcare records. However, there have been reports of some countries experiencing headwinds in their effort to digitize their medical records after a slew of cyber attacks targeting hospitals, slowing down progress in that area[MF3] .

What Standards Should Merchants be Mindful of When Securing Healthcare Data?

There are several standards that merchants should be mindful of when securing healthcare data. For the purposes of this article, we will highlight two and focus on the first one. They include:

  • HIPAA: As mentioned above, HIPAA is a key regulation that sets standards for the protection of healthcare data in the United States. It applies to covered entities, such as healthcare providers, health plans, and healthcare clearinghouses, as well as their business associates, such as merchants that handle healthcare data. HIPAA requires merchants to implement measures to protect the confidentiality, integrity, and availability of healthcare data, including technical safeguards and physical security measures.
  • PCI DSS: The Payment Card Industry Data Security Standard (PCI DSS) is a set of security standards that apply to merchants that accept payment cards, including credit and debit cards. PCI DSS includes requirements for the protection of sensitive data, including healthcare data, and applies to merchants of all sizes.

What is HIPAA Data Security?

The Health Insurance Portability and Accountability Act (HIPAA) was created in 1996 to protect the privacy and security of individuals’ personal health information. HIPAA established national standards for the protection of electronic health information and required that covered entities, such as healthcare providers and insurance companies, implement safeguards to ensure the confidentiality and security of personal health information.

HIPAA also established rules for the use and disclosure of personal health information and provided individuals with certain rights with respect to their personal health information, such as the right to access and correct their health records. The goal of HIPAA is to ensure that personal health information is kept private and secure and to give individuals control over their own health information.

HIPAA requires covered entities and their business associates to implement technical safeguards and physical security measures to protect the confidentiality, integrity, and availability of healthcare data. Technical safeguards may include encryption, authentication, and secure data transmission protocols. Physical security measures may include locked cabinets, restricted access to data centers, and secure storage of data backup tapes.

HIPAA also requires covered entities and their business associates to implement processes and procedures to ensure the security of healthcare data, including access controls, regular audits and reviews, and disaster recovery plans. In addition, HIPAA requires covered entities and their business associates to report data breaches and implement corrective action plans to prevent future breaches. Non-compliance with HIPAA can result in significant fines and legal consequences.

Why is HIPPA data security important for merchants?

HIPAA data security is important for merchants for several reasons. This is especially the case if, beyond medical records, your business is processing payments made by patients and now have their financial data as well. Or if you are managing the overall financial and accounting data of medical offices.

  • Legal and regulatory requirements: HIPAA is a federal law that applies to merchants that handle healthcare data as business associates of covered entities. As such, merchants are required to comply with HIPAA regulations and may face significant fines and legal consequences for non-compliance.
  • Financial implications: Data breaches can have significant financial consequences for merchants, including fines, legal costs, and a loss of customer trust, which can lead to a decrease in revenue and an increase in operating costs.
  • Reputational damage: Data breaches can also damage the reputation of merchants, leading to a loss of trust and credibility. This can be especially damaging for small or specialty businesses that rely on their reputation to attract customers.
  • Customer trust: Protecting healthcare data is crucial to maintaining the trust of customers, especially in the healthcare industry where sensitive information is involved. Customers expect their healthcare data to be protected, and a data breach can lead to a loss of trust and a decline in business.

In summary, HIPAA data security is important for merchants because it helps protect the confidentiality, integrity, and availability of healthcare data and ensures compliance with legal and regulatory requirements. It also helps merchants avoid financial and reputational damage and maintain the trust of customers.

What can Merchants do to strengthen HealthCare Data Security?

There are several steps that merchants can take to strengthen healthcare data security. Firstly, merchants can start with understanding and complying with relevant laws and regulations: Merchants should familiarize themselves with laws and regulations that apply to the handling of healthcare data, such as HIPAA in the United States and the General Data Protection Regulation (GDPR) in the European Union. They should also ensure that they have the necessary policies and procedures in place to comply with these regulations.

Next, implement technical safeguards. Merchants should implement technical safeguards to protect the confidentiality, integrity, and availability of securing healthcare data. This may include encryption, authentication, and secure data transmission protocols by emphasizing HIPPA data and cloud security. As a result, adopting secure data storage practices will be crucial. Merchants should ensure that healthcare data is stored in a secure manner, such as in encrypted databases or on secure servers. They should also implement regular backups and disaster recovery plans to ensure the availability of data in case of a disaster or cyber-attack.

Furthermore, merchants should use secure payment methods, such as PCI DSS-compliant payment processing systems, to protect sensitive data, including healthcare data. By using secure payment methods, top payment providers can easily implement access controls. That will help merchants prevent unauthorized access to healthcare data. This may include user authentication, role-based access controls, and regularly updating passwords.

Also, reporting data breaches as soon as they happen is vital. In the event of a data breach, merchants should report the incident to relevant authorities and implement corrective action plans to prevent future breaches.

Finally, encryption and tokenization are two common methods that merchants use to improve healthcare data security. Encryption is the process of converting data into a coded format that can only be accessed by those with the appropriate decryption key. When data is encrypted, it is transformed into a scrambled format that is unreadable to anyone without the key. Encryption can be used to protect healthcare data, such as medical records and personal information, as it is transmitted over the internet or stored on servers or devices.

Tokenization is a process that replaces sensitive data, such as credit card numbers or healthcare data, with a unique, random string of characters called a token. The token has no value on its own and is only used to represent the original data. Tokenization can be used to protect healthcare data, as the original data is not stored and is therefore less vulnerable to a data breach.

Both encryption and tokenization can be effective methods for improving healthcare data security. Encryption can protect data in transit and at rest, while tokenization can provide an additional layer of security by replacing sensitive data with a random token. Merchants can use these methods to protect healthcare data and comply with relevant laws and regulations, such as HIPAA.

Conclusion

In summary, merchants can strengthen healthcare data security by understanding and complying with relevant laws and regulations, implementing technical safeguards, adopting secure data storage practices, using secure payment methods, implementing access controls, regularly reviewing and updating security measures, and reporting data breaches.

Healthcare data security is a critical issue for merchants operating within the healthcare industry. Protecting sensitive information, such as medical records and personal information, is crucial to ensure the privacy and in securing healthcare data of patients and prevent data breaches that can lead to significant financial and reputational damage. HIPAA data security is an important aspect of healthcare data security as it helps to protect the confidentiality, integrity, and availability of healthcare data and ensures compliance with legal and regulatory requirements.

Merchants can strengthen HIPPA data security by understanding and complying with relevant laws and regulations, implementing technical safeguards, adopting secure data storage practices, using secure payment methods, implementing access controls, regularly reviewing and updating security measures, and reporting data breaches. This is especially important given the increasing number of cyber attacks targeting hospitals and the medical industry. Overall, it is important for merchants to prioritize healthcare data security to protect the confidentiality, integrity, and availability of healthcare data and maintain the trust of customers.


 [MF1]https://www.statista.com/statistics/1274594/us-healthcare-data-breaches/

 [MF2]https://www.fiercehealthcare.com/health-tech/healthcare-data-breach-costs-reach-record-high-10m-attack-ibm-report

 [MF3]https://www.npr.org/sections/goatsandsoda/2022/12/17/1143396605/cyberattacks-on-hospitals-thwart-indias-push-to-digitize-health-care

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