As the healthcare industry continues its wave of consolidations and changes brought about by the economic implications of the COVID-19 pandemic, legal considerations around the disclosure of Protected Health Information (PHI) come to the forefront. Specifically, the circumstances and legalities surrounding the disclosure of PHI upon the sale of a medical practice raise numerous challenges.
The Health Insurance Portability and Accountability Act of 1996 (HIPAA) and the Health Information Technology for Economic and Clinical Health Act (HITECH), collectively referred to as the HIPAA/HITECH Act, have always held rigid privacy standards for PHI. The rule is that PHI cannot be disclosed to another Covered Entity without a direct or indirect treatment relationship with the patient, unless the patient has explicitly given their authorization. This, of course, presents a challenge when a medical practice is sold and the PHI must be transferred.
Fortunately, an exception exists within the HIPAA/HITECH Act which allows the disclosure of PHI without patient authorization under certain circumstances. These exceptions apply in circumstances such as the sale of a medical practice, where the PHI needs to be transferred to a new Covered Entity without the direct or indirect treatment relationship.
The principle aim of these regulations has always been to put patients in control of their own health information while also making provisions for instances in which the flow of this information is necessary for treatment, public health, or in the operation of healthcare business. The HIPAA/HITECH Act’s provisions regarding the sale of a medical practice and the resultant transfer of PHI is a prime example of this balance at work.
This issue and its potential implications are well dissected in the Bowditch & Dewey article on the understanding of the HIPAA/HITECH Act’s provisions regarding PHI upon the sale of a medical practice. It is always beneficial for corporate legal professionals, especially those in healthcare corporations and law firms, to familiarize themselves with these topics as they continue to evolve in our post-pandemic world.