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October 2013

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HIPAA Omnibus Rule Is in Effect: Are You Ready?

On September 23, 2013, the HIPAA Omnibus Rule went into full effect, marking the most comprehensive changes to the HIPAA Privacy and Security Rules since they were first implemented in the US in 1996.

“These changes not only greatly enhance a patient’s privacy rights and protections, but also strengthen the ability of my office to vigorously enforce the HIPAA privacy and security protections, regardless of whether the information is being held by a health plan, a healthcare provider, or one of their business associates," says Leon Rodriguez, director of the Office for Civil Rights at the US Department of Health and Human Services.

To help Oracle’s healthcare customers ready their organizations for the new requirements, law firm Ballard Spahr LLP and the Oracle security team hosted a webcast—now available on demand—titled “Addressing The Final HIPAA Omnibus Rule and Securing Protected Health Information.”

Three Key Changes Affecting Oracle Customers
Oracle security experts have carefully examined the Omnibus rule and have identified what they believe are the three most significant changes for Oracle customers, which include

  • Stricter breach notification requirements. Institutions can no longer determine for themselves if a breach has caused harm. The only way to invoke safe harbor and avoid penalties is via data encryption of electronic protected health information (ePHI).
  • Liability for breaches by business associates. The originator of ePHI now remains responsible for the protection of the data even after it has been handed off to a business associate, including cloud providers. Both criminal and civil penalties could apply. "This has become a chain of custody issue and represents an enormous change," says Ted Sherrill, Oracle senior director of Healthcare Security and Regulatory Solutions.
  • Increased risk of willful negligence. No institution larger than a certain size can claim it is unaware of requirements to protect ePHI. As a result, institutions that do not make attempts to comply with the HIPAA Omnibus rule can be found willfully negligent and suffer increased penalties.
From Data Encryption to Security Inside-Out
As US Health and Human Services leaders have made clear, the encryption of sensitive information within the database is a vital step toward HIPAA compliance, but alone it is not enough—especially as mobile devices continue to proliferate.

"With the increasing pressure to accommodate nontrusted devices and nontrusted network communications, perimeter security is no longer sufficient," explains Sherrill. "To remain compliant, you must pursue a three-pronged approach, which Oracle is uniquely able to deliver, thanks to its inside-out approach to security."
To learn more about the new rule, view the on-demand webcast “Addressing The Final HIPAA Omnibus Rule and Securing Protected Health Information.”
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