HPIAA vs GDPR: What Every Medical Practice Must Know

In 2024, the healthcare sector recorded the highest number of security breaches. 79 per cent of all the data breaches in different industries were recorded in the healthcare sector. 90 per cent of healthcare organizations have recorded data breaches with stolen information of the patient at least once, with 30 per cent of these incidents happening in hospitals. Healthcare providers gain access to a person’s most private matters, from current illnesses to past tragedies; everything is recorded for better medical care. But confiding in anyone with your personal life is not an easy decision.

Even today, many people keep certain aspects of their lives hidden from their healthcare professionals due to the fear of being judged or exposed. If the trust between the patients and healthcare providers is not developed, “proper treatment” will become a myth. Therefore, healthcare providers must align and respect the emotional vulnerability of the patients and keep their data private. This is not just the duty of the healthcare providers but also the right of the patients. To ensure this transparency, there are two important laws presiding over the security of Personal Health Information (PHI)- HIPAA and GDPR. This article is a comparative reading between HIPAA vs GDPR medical practices to provide the readers and healthcare providers a comprehensive understanding of the two.

What is HIPAA?

The HIPAA, or Health Insurance Portability and Accountability Act, came into existence in the year 1996. It is a law governed by the US that presides over the security of the Private Health Information (PHI) recorded in the healthcare sector. The law works under the U.S. Department of Health and Human Services (HHS) Office, which ensures the HIPAA compliance of the healthcare sector and investigates and takes stringent actions over violations.

The sectors that have to comply with HIPAA are called “covered entities,” which include hospitals, doctors (of all specialities), pharmacies, health insurance and other plans providers, and even the business associates that handle the PHI as a service to the healthcare organisations. The covered entities must adopt technical, physical, and administrative measures to control the data flow and ensure the rights of patients regarding their details.

HIPAA rules and regulations apply to all kinds of data, including electronic, oral, or paper, governing how they are recorded, disclosed, and placed under the ownership of the patient. It allows the patient to request access and make corrections rather than a second or third party. In case of breaches, HIPAA has strictly ordered immediate notification of the affected patient and walked them through the steps they must take to protect themselves. In case a certain covered entity violates HIPAA, they will be penalised with fines and jail, causing monetary damage and reputation dissolution. To ensure the seamless compliance and security of data, the complaints are expected to designate a HIPAA Security Officer and a HIPAA Privacy Officer to navigate their security measures and conduct risk assessments.

What is GDPR?

Another law that governs patient data protection is the GDPR (General Data Protection Regulation). As the name itself suggests, GDPR is a general law for all types of private information and is not restricted to healthcare. Established on May 25, 2018, GDPR is a modern version of data protection governed by the European Union and applies to all countries under it.

Under GDPR compliance, companies of any sector and size that retain the private information of individuals must adhere to the GDPR law and appoint a Data Protection Officer who governs the security of the data and acts as the mediator between the public officers (GDPR) and the company. GDPR maintains the rights of the individual over the industries by ensuring that the data is retrieved from the individual only for specific and legal purposes.

Moreover, GDPR ensures that the industries record only the data that is required for the purpose. Every company or industry handling personal information must be legally authorised to do so. Similar to HIPAA, GDPR also grants the individual the right to control the processing of the data, have complete rights and ownership over it, and the right to rectify the data.

Additionally, GDPR allows individuals the right to erase their data from the industry’s records. In case of breaches, the companies must inform the affected individuals within 72 hours, irrespective of how small or big the breach is and what its nature is. The punishment for violation is paying 4 per cent of the total world annual turnover of the company as a fine. Moreover, the affected individuals have the right to demand compensation for the leak of their information.

HIPAA vs GDPR Medical Practices

The difference between GDPR and HIPAA is based on the area and scope of action. HIPAA is strictly restricted to the healthcare sector, while GDPR is a general law for the protection of individual data in every sector. The GDPR compliance in healthcare sector is a special category of GDPR and is the most strictly governed area. GDPR is stringent on taking consent from the individual before processing or transacting an individual’s information. In no condition can the company transfer or share the individual data without clear consent from the individual.

However, under HIPAA, healthcare sectors can share PHI with other hospitals and healthcare providers without the consent of the patient. Lastly, the information for the breach can be shared by HIPAA-covered entities to the HHS and the individuals within 60 days if more than 500 individuals have been affected. Otherwise, the entities can record the breach and report to the HHS yearly. However, GDPR demands that companies report any kind of breach, irrespective of the size, within 72 hours.

Therefore, HIPAA vs GDPR medical practices show a difference in the mechanism, but the bottom line is that both laws are designed to protect the privacy of patients and make them the rightful owners of their PHI. This can positively impact the healthcare providers and the patient relationship, and make it mutually thriving.

HIPAA and GDPR Compliance Through Digital Solutions

HIPAA vs GDPR medical practices can be eased and streamlined through digital solutions software. The software allows encryption of data, default options of permission and privacy, cloud storage, digital/visual mapping of the flow of data, automated notification of the breach, and designated patient portals allowing them the right to rectify or erase the data. Digital solutions can make HIPAA or GDPR compliance hassle-free by making most of the important actions automated and secured. Physical labour is reduced, and so is the risk of mistakes due to minor inconveniences.

If you are in the healthcare sector looking for digital solutions that not only make your work seamless but also maintain your privacy and security compliance, connect with GDPR service providers in the UK