Healthcare organizations have increasingly adopted cloud computing solutions to maximize efficiency. Yet not every cloud service provider is HIPPA-compliant. At TenHats, we’re well-versed in the HIPAA Privacy Rule, and we work closely with our healthcare clients to ensure their data storage meets every requirement.
The HIPAA Privacy Rule applies to cloud computing in a number of ways, including:
- Covered entities and business associates
- Reproductive health care privacy
- Auditing and monitoring
- Data storage and transmission
- Individual rights and requests
How the HIPAA Privacy Rule Affects Cloud Computing
The HIPAA Privacy Rule has significant implications for cloud computing. This is especially true when handling protected health information (PHI), also referred to as individually identifiable health information or personal health information.
The Privacy Rule sets national standards to protect PHI and applies not only to the daily practice of healthcare providers but also to their administration of patient health records.
The Department of Health and Human Services (HHS) oversees the enforcement of the Privacy Rule through its Office for Civil Rights (OCR). Failure to comply with the HIPAA Privacy Rule can result in being fined for each individual violation. This can result in fines costing thousands of dollars per violation, depending on the severity of the privacy breach.
1. Covered Entities and Business Associates
Entities covered by the Privacy Rule and business associates are required to safeguard the PHI of individuals’ medical records when using cloud services. This process involves:
- Implementing appropriate security measures
- Signing business associate agreements
- Maintaining control over PHI access and storage
The Privacy Rule ensures that PHI remains confidential, secure, and HIPAA-compliant when stored or processed in the cloud. Cloud providers must offer robust data encryption, access controls, and safeguards to prevent unauthorized disclosure.
For instance, the data in a patient portal could potentially be accessed by IT teams, customer service agents, and web developers on the backend. The application structure has to think about all those use cases and create levels of access controls to safeguard PHI.
2. Reproductive Health Care Privacy
Changes to reproductive healthcare information affect who can access PHI through the cloud and how. In April 2024, the Office for Civil Rights issued a final rule on sharing reproductive healthcare information in legal cases involving out-of-state abortions.
The HHS believes that fear of disclosing reproductive health information could stop patients from sharing important details with doctors, which could harm their care. To address this, the HIPAA Privacy Rule was updated to better protect reproductive health information.
Effective June 25, 2024, the final rule includes all reproductive and related healthcare, such as:
- Contraception
- Miscarriages
- Fertility treatment
It bans using or sharing PHI to investigate or punish lawful reproductive healthcare activities. Healthcare providers, health plans, and business associates must get a signed statement confirming that requests for reproductive health-related PHI are not for prohibited purposes.
For healthcare cloud service providers, this means that they can’t read or share health data if they receive a subpoena because it’s encrypted or they can’t read it. They also can’t give the information without more proof that the care was illegal. Even with an attestation, disclosing PHI for prohibited purposes is not allowed by Title 45 of the Code of Federal Regulations.
3. Auditing and Monitoring
The Privacy Rule necessitates comprehensive security measures for auditing and monitoring in cloud computing. Cloud service providers must implement authentication mechanisms and data segmentation.
These measures ensure that sensitive health data remains confidential and is only accessed by authorized personnel. Regular audits and monitoring activities are required to detect any unauthorized access, breaches, or suspicious activities within the cloud environment.
Covered entities and their business associates must closely oversee these security measures to prevent data breaches and uphold HIPAA compliance.
4. Data Storage and Transmission
The HIPAA Privacy Rule mandates safeguards for the storage and transmission of data. Whether in electronic or paper form, covered entities must ensure that PHI is kept secure.
Any data shared or transmitted must utilize security measures to prevent unauthorized access. One example is the exchanging of electronic health information. In this case, entities must follow standard protocols to safeguard PHI. This ensures the patient’s privacy while guiding the secure cloud storage and proper transmission of health-related data.
Under the HIPAA Privacy Rule, covered entities like healthcare providers must establish business associate agreements (BAAs) with vendors or partners who handle PHI on their behalf. The rule sets a standard for data protection and format, ensuring that PHI remains confidential and secure throughout its handling.
Business associates are now directly liable for complying with the Privacy Rule and must also have BAAs with their subcontractors. These agreements ensure that the business associates follow strict privacy standards and safeguards when handling PHI.
The BAA:
- Outlines the permissible uses and disclosures of PHI
- Mandates appropriate security measures
- Establishes reporting obligations in case of breaches
Failure to adhere to these provisions can result in penalties ranging from a few hundred to tens of thousands of dollars for each violation. This reinforces the importance of safeguarding sensitive health information across all entities involved.
5. Individual Rights and Requests
The HIPAA Privacy Rule grants patients essential rights regarding cloud computing. This allows patients to:
- Obtain a copy of their individual medical records
- Request corrections to their PHI
- Control disclosures
When using cloud services, covered entities must ensure stringent safeguards and BAAs with cloud providers to protect sensitive data. Patients can still exercise their rights regardless of data storage in the cloud. The Privacy Rule maintains individual control over health information and necessitates secure practices in cloud computing to preserve privacy and patient rights.
From an IT and developer standpoint, this is often a paradox. For security, it needs to be difficult for anyone to access patient data. Yet for the patient’s own user experience, it should be relatively simple to view their information online. The challenge is to create a secure system that doesn’t frustrate users.
TenHats: Your Bridge Between HIPAA and Cloud Computing
At TenHats, we provide HIPAA and SOC II security compliance to ensure your patients’ data stays secure. However, we don’t stop there. We also provide 24×7 armed physical security to keep servers and other equipment secure. This ensures that your sensitive data is under multi-layered constant protection in our 10,000-foot purpose-built data center.
HIPAA and cloud computing have profound implications for managing PHI. Governed by national standards, HIPAA extends its reach from daily healthcare operations to patient record administration, overseen by the Department of Health and Human Services. Compliance entails stringent security measures and recent updates addressing reproductive healthcare privacy, emphasizing the need for robust safeguards and compliance solutions like TenHats.
Located in Knoxville, TN, our purpose-built colocation data center can serve any organization in East Tennessee and beyond. With our team’s IT experience, we provide a lot more than simply protected data. When you call us, you talk to a real IT expert, not just security. Connect with our team about our data center today!
