The Health Insurance Portability and Accountability Act (HIPAA) is a US law which affects most organizations receiving federal funding or storing medical records. In 2003, stricter patient privacy rules went into effect, with stiff penalties for any breach of confidentiality. As the penalties for even a single breach of confidentiality can be extremely damaging, strict security policies are needed by organizations subject to HIPAA. It should be noted that there are no "magic bullet" solutions to HIPAA compliance - any organization subject to HIPAA rules is well advised to become familiar with the actual regulations and review their operations regularly to insure compliance.
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