I shared yesterday that healthcare analytic companies, classified as business associates, can expect to be entering into an “audit lottery” as the government expands HIPAA audit activities.
Health care companies, be it Providers or Payors, must ensure that their vendors comply with regulations as both they, and the vendor, can face significant legal repercussions.
The requirement to meet ever growing security regulations for healthcare data will unintentionally shrink the number of healthcare analytic companies. Only larger companies will be able to sustain the cost of compliance that is required to provide the service. Many health care Providers and Payors may look to larger companies for healthcare analytic services to reduce their overall risk. The reduction of companies in the space reduces competition and new ideas and approaches to create better quality care for less cost.
Most people agree that securing health related data is important. Most would also agree that finding new ways to deliver better quality care is as important. The balance between the two is at stake.