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HIPAA Privacy Rule When Selecting a Managed IT Provider


In the ever-evolving landscape of healthcare and information technology, understanding the intricacies of the HIPAA Privacy Rule is paramount. As businesses increasingly rely on Managed IT Services Providers (MSPs) to manage their sensitive healthcare data, avoiding common mistakes in selecting the right IT MSP becomes crucial. In this article, we’ll delve into the HIPAA Privacy Rule, its importance, and the pitfalls to avoid when choosing an IT MSP to ensure compliance and data security.

The Significance of HIPAA Privacy Rule

Before we delve into the common mistakes to avoid, let’s first clarify what the HIPAA Privacy Rule entails. HIPAA, which stands for the Health Insurance Portability and Accountability Act, was enacted in 1996 to safeguard patients’ sensitive medical information. The Privacy Rule, a key component of HIPAA, establishes guidelines for the protection and proper use of protected health information (PHI).

The HIPAA Privacy Rule consists of three fundamental components:

  1. The Three Rules Framework: HIPAA is often referred to as having “Three Rules” – the Privacy Rule, Security Rule, and Breach Notification Rule. Our focus here is primarily on the Privacy Rule, but it’s essential to understand how it fits into the broader context.
  2. Authorization and Consent: The Privacy Rule dictates how patient information can be disclosed and shared, emphasizing the need for patient authorization and consent for the use and disclosure of their PHI.
  3. Minimum Necessary Standard: Covered entities must limit the use or disclosure of PHI to the minimum necessary to accomplish the intended purpose. This principle ensures that only the essential information is accessed, reducing the risk of data breaches.

Now, let’s explore the common mistakes businesses make when selecting an IT MSP to manage their healthcare data while adhering to the HIPAA Privacy Rule.

HIPAA Privacy Rule in Depth

Purpose and Scope:

The HIPAA Privacy Rule, formally known as the Standards for Privacy of Individually Identifiable Health Information, was enacted to address the growing concern over the privacy and security of healthcare information. Its primary purpose is to protect the confidentiality and security of patients’ individually identifiable health information (IIHI), commonly referred to as protected health information (PHI).

The Privacy Rule applies to three main types of entities:

  1. Covered Entities: These include healthcare providers (doctors, hospitals, clinics), health plans (insurance companies, HMOs), and healthcare clearinghouses. Covered entities are directly regulated by HIPAA.
  2. Business Associates: These are individuals or organizations that perform functions or services on behalf of covered entities, involving the use or disclosure of PHI. Business Associates must also adhere to HIPAA rules through contractual agreements.
  3. Subcontractors: Subcontractors, in some cases, must also comply with HIPAA regulations. They are typically entities contracted by Business Associates to assist in PHI-related services.

Key Principles:

The HIPAA Privacy Rule is built upon several key principles, each designed to protect the privacy and security of patients’ health information:

  1. Authorization and Consent: Covered entities must obtain written authorization from patients before using or disclosing their PHI. Patients have the right to specify how and to whom their PHI is shared.
  2. Minimum Necessary Standard: This principle emphasizes that covered entities should limit the use or disclosure of PHI to the minimum necessary to accomplish the intended purpose. It reduces the risk of exposing more information than required.
  3. Patient Rights: The Privacy Rule grants patients several rights, including the right to access their PHI, request amendments to incorrect information, and receive an accounting of disclosures.
  4. Administrative Safeguards: Covered entities must implement administrative safeguards to protect PHI. These safeguards include workforce training, access controls, and security policies.
  5. Physical Safeguards: Physical safeguards ensure the protection of PHI in physical form, such as paper records. Measures may include secure storage and access controls.
  6. Technical Safeguards: Technical safeguards involve securing electronic PHI (ePHI). These measures include encryption, access controls, and regular audits.

Penalties for Non-Compliance:

Failure to comply with the HIPAA Privacy Rule can result in severe penalties, both in terms of monetary fines and reputational damage. Penalties vary depending on the severity of the violation:

  1. Civil Penalties: These can range from $100 to $50,000 per violation, with a maximum annual penalty of $1.5 million.
  2. Criminal Penalties: In cases of willful neglect, criminal penalties can result in fines ranging from $50,000 to $250,000 and imprisonment ranging from one year to ten years, depending on the nature of the violation.
  3. Reputational Damage: Beyond financial penalties, non-compliance can lead to loss of trust among patients and partners, which can be difficult to recover.

Evolving Landscape:

It’s crucial to note that the healthcare landscape is constantly evolving, and with it, the regulatory environment. HIPAA has been updated to address emerging concerns, such as the HITECH Act and the Omnibus Rule, which expanded the scope of the Privacy Rule and increased enforcement efforts.

Mistakes to Avoid When Selecting an IT MSP for Your HIPAA Practice

  1. Neglecting HIPAA Expertise: One of the gravest errors is overlooking the IT MSP’s expertise in HIPAA compliance. The MSP should have a deep understanding of the HIPAA Privacy Rule and how it pertains to healthcare data. Failure to do so can lead to costly violations and penalties.
  2. Choosing a Non-Specialized MSP: Not all MSPs are created equal. Opting for a generic IT provider rather than one specializing in healthcare IT can be a costly mistake. Healthcare IT MSPs are well-versed in the unique challenges and regulations of the healthcare industry.
  3. Ignoring Security Protocols: HIPAA’s Privacy Rule goes hand in hand with its Security Rule. Neglecting the importance of robust cybersecurity measures can leave your organization vulnerable to data breaches and non-compliance.
  4. Failing to Assess Business Associate Agreements: When engaging an IT MSP, it’s essential to establish a clear Business Associate Agreement (BAA). This legal contract ensures that the MSP complies with HIPAA regulations. Failing to assess and establish a strong BAA can lead to legal troubles down the line.
  5. Underestimating Employee Training: HIPAA compliance isn’t just about technology; it’s also about personnel. Failing to provide adequate HIPAA training for employees can result in unintentional breaches due to ignorance.
  6. Forgetting About Disaster Recovery: Disaster recovery and data backup are essential components of HIPAA compliance. An MSP should have robust plans in place to safeguard data and ensure its availability in case of unforeseen events.
  7. Neglecting Regular Audits and Assessments: Compliance is an ongoing process. Choosing an MSP that doesn’t conduct regular audits and assessments can leave your organization unaware of potential vulnerabilities.
  8. Overlooking Scalability: As your healthcare organization grows, so do your IT needs. Failing to choose an MSP that can scale with your business can lead to inefficiencies and disruptions.


Q1. What is the purpose of the HIPAA Privacy Rule? The HIPAA Privacy Rule is designed to protect patients’ sensitive health information by establishing guidelines for its use and disclosure while ensuring patient privacy.

Q2. Can a non-specialized MSP handle healthcare data under HIPAA? While it’s possible, it’s not recommended. Healthcare-specific MSPs have a deeper understanding of the unique challenges and compliance requirements in the healthcare industry.

Q3. How often should audits and assessments be conducted for HIPAA compliance? Regular audits and assessments should be conducted at least annually to ensure ongoing compliance and identify potential vulnerabilities.


Selecting the right IT MSP for managing healthcare data under the HIPAA Privacy Rule is a critical decision. Avoiding the common mistakes outlined in this article is vital to maintain compliance and safeguard patient information. At QIT Solutions, we specialize in Managed IT Services, cybersecurity, and cloud solutions tailored to the healthcare industry. Don’t jeopardize your organization’s HIPAA compliance. Contact us today to learn how we can assist you in navigating the complex world of healthcare IT while adhering to the HIPAA Privacy Rule.

Contact QIT Solutions for help today, and let us be your trusted partner in ensuring HIPAA compliance and data security. Your patients’ privacy is our priority.

QIT Solutions

QIT Solutions set out to solve what was then a major problem for small businesses: having difficulty keeping up with their IT needs. We noticed that large corporations often had multiple employees specializing in different aspects of the industry and realized this approach would work well also among smaller organizations who might not be able to sustain such teams, but still require help managing an oversized workload. We provide a single resource for all your IT issues.