New Law Boosts Rules, Penalties Around Medical Info

A new federal law that encourages broader sharing of health information will also impose more rules around the disclosure of such information and stiffer penalties for improper disclosure.

The Health Information Technology for Economic and Clinical Health Act (“HITECH”) went into effect February 17.

It is designed to improve the quality of health care and reduce medical errors and duplicative care while strengthening the privacy and security of health information. HITECH:

• Requires the federal government to develop standards that allow for the nationwide exchange of health information.
• Requires the investment of $20 billion in health information technology infrastructure, along with and Medicare and Medicaid incentives to encourage the use of that infrastructure.
• Imposes additional regulatory requirements with regard to protected health information.
• Increases civil penalties and extends applicable civil and criminal penalties to business associates of covered entities relative to improper disclosure of information.
• Requires notification to patients of a security breach.

For more information on this new law and its impact, contact Shirley Christian at schristian@hhmlaw.com or Jess Enyeart at jenyeart@hhmlaw.com.