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The Business of Health Care Report
HIPAA: One Year Later - July 2004


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Doug Hawthorne, President and CEO of Texas Health Resources I'm Doug Hawthorne, President and CEO of Texas Health Resources, with "The Business of Health Care Report" on News Radio 1080 KRLD.

My topic today is HIPAA – one year later.

For anyone who’s been to a hospital or doctor’s office over the past year, you’ve likely been introduced to the Health Insurance Portability and Accountability Act, better known as HIPAA. In April 2003, the U.S. health care industry began complying with new medical privacy regulations under the act, the first-ever comprehensive federal law to safeguard the confidentiality of Americans’ health information.

Information protected under the privacy law includes the patient’s name, address, phone number, medical and account numbers, photos, diagnoses and test results. The law also assures Americans that law enforcement officials cannot access their medical records without following the proper legal process and that health care providers and plans are prohibited from sharing information with employers.

For thousands of hospitals, health systems and physicians across the nation, this means changes in how computer systems operate, how patient information is processed, and how physicians communicate. And these changes carry a hefty price tag, especially for large hospital systems like Texas Health Resources, which will spend $10 million for HIPAA compliance, including privacy, security and transactions standards.

Despite the financial and organizational obstacles, however, a survey of hospitals and other health care organizations by the American Health Information Management Association finds that most, including Texas Health Resources, have achieved compliance with the rules.

Because HIPAA affects every department, employee and business associate of hospitals, however, it will take continual education of hospital workers and patients to implement the privacy provisions in ways that do not frustrate patient care and essential hospital operations, and do not overwhelm hospitals financially.

For Texas Health Resources and its family of hospitals - Harris Methodist Hospitals, Presbyterian Healthcare System and Arlington Memorial Hospital - I'm CEO Doug Hawthorne with "The Business of Health Care Report" on NewsRadio 1080 KRLD.

Doug Hawthorne

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