HIPAA, the Health Insurance Portability and Accountability Act, requires healthcare facilities (hospitals, clinics, and private practices…) that have access to Protected Health Information (PHI) to take steps to protect their patients’ data.
Whenever a healthcare facility outsources a service, that service must also be HIPAA-compliant. Altogether, both partners being HIPAA compliant leads to exceptional data security. That’s why at Ditto Transcripts, we understand the severity of data breaches and are 100% HIPAA compliant with our legal transcription services and medical transcription services.
In this article, you’ll learn:
- What HIPAA is, what counts as Protected Health Information (PHI), and why compliance is critical for healthcare and legal organizations.
- The administrative, physical, and technical safeguards are required to maintain HIPAA compliance.
- Common HIPAA violations, potential penalties, and how to prevent breaches through best practices and audits.
What Does HIPAA Really Do?
HIPAA, the Health Insurance Portability and Accountability Act, establishes standards for the protection of patient data. There’s a series of regulatory standards that companies must follow if they handle sensitive protected health information (PHI). All healthcare facilities, including hospitals, doctors’ offices, and clinics, must choose to outsource their confidential files to HIPAA-compliant companies. Otherwise, they face violating the law and possible lawsuits.
The history of HIPAA and how it came to be
HIPAA was founded in 1996 when the Health Insurance Portability and Accountability Act (HIPAA) was signed into law. It was created to improve the portability and accountability of health insurance coverage for employees handling Protected Health Information (PHI). Other goals were to eliminate waste, fraud, and abuse in health insurance and in health care delivery. Over time, HIPAA became a vehicle for encouraging the healthcare industry to digitize patient documents.
Because HIPAA is a complex topic that covers many aspects, we’ll break it down to make it easier to understand.
First, though: what counts as Protected Health Information (PHI)?
Under HIPAA, PHI is defined as health information, including diagnostic, treatment, prescription, and medical test results. Identification numbers and demographic information, such as birth dates, ethnicity, gender, and contact information, fall under the HIPAA protection.
Who Needs to be HIPAA Compliant?
Anyone who works in healthcare or does business with healthcare clients that require access to health data must be HIPAA compliant. Organizations include:
- Hospitals
- Nursing homes
- Health clinics
- Dentists
- Doctors
- Pharmacies
- Psychologists
- Chiropractors
If any of these enterprises need outsourcing (translation, transcription, medical billing and coding, etc.), the company they choose to outsource to must also be HIPAA-compliant.
This means the medical provider or facility will be responsible for ensuring they have chosen to do business with a legitimate company—whether providing medical transcription services, medico-legal transcription services, or other outsourced solutions—and not a fraudulent, foreign-based operation.
What Is HIPAA Compliance?
HIPAA compliance requires physicians and others in the healthcare industry to protect electronically stored PHI using appropriate administrative, physical, and technical safeguards. This ensures the confidentiality and security of the information.
Violators of provisions in the HIPAA Privacy and Security Rules can be financially penalized. Sometimes, even something as drastic as criminal penalties can be imposed for severe HIPAA privacy violations.
HIPAA Security Requirements
- The Administrative Safeguards require ongoing risk assessments to identify potential vulnerabilities and risks to PHI.
- Physical Safeguards are measures integrated to prevent unauthorized access to PHI and to protect data from disasters such as fire, flooding, and other environmental hazards.
- The Technical Safeguards are the controls needed to ensure data security when PHI is being shared through an electronic network.
Many more HIPAA security requirements fall under the three safeguards to protect data.
Designated Security Official
Each organization has one designated security official responsible for its HIPAA Security Rule development and implementation. These are almost always managerial positions of some kind that report to the board or practice management positions, because they are extremely important.
| Category | Key Points |
| Security Management System | Establish policies and procedures to prevent, detect, contain, and correct security breaches. Non-compliance can result in fines and penalties (up to 20 years by the FTC). |
| Identity Workforce Access Needs | Identify which employees require access to PHI. Apply the “least privilege” principle to limit unnecessary access. |
| Restricted Information Access | Implement permissions to ensure only authorized employees have access to PHI. |
| Security Awareness Training | Train all staff thoroughly on HIPAA rules and security policies. Provide resources for reference. |
| Security Incident Procedures | Have policies in place for staff to follow in the event of a security breach. |
| Contingency Plan | Include data backup, disaster recovery, and emergency operations in case of PHI breaches. Test, revise, and manage applications that store or transmit PHI. |
| Evaluations and Improvements | Regularly review and update policies as the HIPAA Security Rule evolves. |
| Third-Party Contracts | Ensure that outsourced healthcare-related businesses are HIPAA-compliant. Align policies between organizations to prevent breaches. |
| Physical Facility Access Controls | Restrict physical access to PHI storage areas (e.g., locked rooms, secure cabinets). |
| Strict Workstation Use | Secure all devices accessing PHI (desktops, laptops, tablets) on-site or off-site, online or offline. |
| Technical Workstation Security | Implement safeguards such as remote wipe and encryption on all computers that access PHI. |
| Auxiliary Device and Media Controls | Protect all devices that interact with computers (USB drives, tape backups, removable storage). Wipe or dispose of them after use. |
| Audit Access Control Lists | Require user authentication (one-time passwords, two-factor authentication, device recognition). Regularly review audit logs for suspicious access. |
| Breach Audit Trail and Reporting | Establish procedures to identify, report, and respond to breaches using audit trails. |
| Ability to Recover and Restore | Ensure systems can recover and restore PHI after breaches, accidental deletion, or natural disasters. |
| Person or Entity Authentication | Verify the identity of anyone accessing PHI (personal questions, two-factor authentication, etc.). |
| Transmission Security | Protect PHI during transmission to business partners. Use SFTP, HTTPS, encrypted email, or VPN. Ensure only authorized individuals have access to the data. |
In addition to safeguarding medical records, Ditto Transcripts also extends its expertise to court transcription services, ensuring that both healthcare and legal documentation are handled with the same rigorous attention to accuracy, security, and compliance.
What Is a HIPAA Violation?
A HIPAA violation happens when a breach in an organization’s compliance program compromises the integrity of PHI.
Does a breach always mean a violation?
No. A data breach becomes a violation when it results from an ineffective, outdated, or incomplete HIPAA compliance program. It could also be a direct violation of an organization’s HIPAA policies.
Here’s an example of the difference:
- An employee’s laptop containing PHI gets stolen. This is a data breach.
- After the employee’s laptop gets stolen, the organization doesn’t have a policy in place barring laptops from being taken off-site or requiring encryption. This is a HIPAA violation.
In 2018, OCR found 10 companies guilty of noncompliance with HIPAA. This resulted in $28.7 million in fines altogether.
In 2009, Blue Cross Blue Shield of Tennessee experienced a data breach that exposed over 1 million records. It cost them an estimated $18.5 million.
In 2015, Anthem Inc. suffered a breach that exposed 80 million records, costing the company $1 billion.
Some of the most common HIPAA violations are:
- Stolen devices (laptop, phone, USB)
- Malware incidents
- Hacking
- Office break-in
- Sending PHI to the wrong person
- Social media posts
- Ransomware attack
- Discussion of PHI outside of work
These violations fall into several common categories:
- Use and disclosure
- Access controls
- The Minimum Necessary Rule
- Improper security safeguards
- Notice of Privacy Practices
If an organization gets a HIPAA violation and claims they didn’t know about the incident, they will still get fined. Here is a chart of the fine amounts depending on the severity of the violation.
Elements of an Effective HIPAA Compliance Program
To ensure organizations have all the boxes ticked for HIPAA compliance, the Office of the Inspector General (OIG) for the Department of Health and Human Services (HHS) created a compliance training guide. The guide is titled “The Seven Fundamental Elements of an Effective Compliance Program.”
An auditor will use these criteria during investigations, so as long as the organization follows the seven rules, it’ll meet compliance requirements.
Detailed Reporting and Tracking Features
Our data reporting and tracking features include:
- Monitoring all modifications to PHI across file services to detect breaches.
- Track and monitor all changes to access rights and file server permissions to identify anomalies.
- Audit and report all data access to PHI to ensure no unauthorized changes occur.
- Utilize customizable, built-in capabilities for alerts to audit file/folder-related activities regularly.
- Detect and respond to mass access with customizable, automated responses.
HIPAA Training Information
| Category | Key Points |
| Individually Defined User Access Levels | User-based access secures software and features, allowing granular control. Files are accessible only to authorized employees involved with the transcription. |
| Individual Usernames, Passwords, and PINs | Each transcriptionist works with their own account, ensuring no account sharing or screen peeking. Access can be immediately deactivated upon request or automatically after project completion. |
| Scaled Network Redundancy | Highly redundant networks with alternative paths using standby routers and switches ensure uninterrupted service. |
| Virtual Private Network (VPN) Integration | VPN encrypts data during transmission, protecting files from unauthorized access over the public internet. |
| Dedicated HIPAA Compliant Data Centers | Data is stored in HIPAA-compliant Amazon Web Services (AWS) cloud servers, supporting data locality, confidentiality, and protection. |
| SSL 256-bit Secure Encryption | Uses industry-standard SSL 256-bit encryption, making it virtually impossible for hackers to break even with the fastest computers. |
| Secure FTP (SFTP) Servers | SFTP ensures confidential file transfers, supports directory management, and provides authentication, encryption, password management, and access control. |
| Additional Information | For questions about HIPAA or security measures, clients can contact Ditto Transcripts via phone, email, or the contact page. |
Why Choose Ditto Transcripts
Choosing the right transcription partner is critical for healthcare providers, private practices, and legal professionals. At Ditto Transcripts, we combine accuracy, security, and reliability to provide a comprehensive transcription solution that meets all your needs. Here’s why healthcare and legal organizations trust us:
Accuracy and Reliability
We guarantee 99% accuracy on all medical transcription projects, including deposition and legal transcription services. Our 100% human-powered transcription ensures precise, high-quality records, eliminating errors that could negatively impact patient care or legal documentation.
HIPAA-Compliant and Secure
We are fully HIPAA-compliant, safeguarding Protected Health Information (PHI) with robust administrative, physical, and technical controls. From 256-bit SSL encryption to dedicated HIPAA-compliant cloud servers and VPN integration, we ensure sensitive information remains private, secure, and protected from unauthorized access.
Time and Cost Efficiency
Outsourcing transcription to Ditto Transcripts saves healthcare providers and legal professionals significant time and reduces costs. Our fast turnaround times and flexible service options allow your staff to focus on patient care or legal priorities instead of manual documentation. Check our legal transcription prices to know more.
Consistency and Customization
We provide standardized, consistent transcripts across all documentation types, including EMR/EHR records, medical reports, and deposition transcripts. We also offer customized formatting and templates to match your workflow and recordkeeping systems.
Scalability and Flexibility
Ditto Transcripts can handle fluctuating transcription volumes effortlessly. Whether you have a sudden surge of medical dictations or deposition transcripts, our team scales to meet your needs without compromising quality or turnaround time.
Excellent Customer Support
Our 100% U.S.-based team provides responsive support via phone, email, and fax. Whether you need assistance with formatting, urgent projects, or troubleshooting, our customer service representatives are ready to help promptly and professionally. Don’t believe us? Here’s our client testimonial:
Ditto Transcripts is a Denver, Colorado-based FINRA, HIPAA, and CJIS-compliant transcription services company that provides fast, accurate, and affordable transcripts for individuals and companies of all sizes. Call (720) 287-3710 today for a free quote.