Top 4 HIPAA Violations and How to Avoid Them

Imagine this: A small telehealth startup is thriving, offering convenient online consultations. Then, one day, they face a security breach exposing sensitive patient data. Not only do they face hefty fines, but they also lose customer trust overnight. Stories like this aren’t just headlines—they’re cautionary tales about why HIPAA compliance matters. 

The truth is, non-compliance can lead to hefty fines, reputational damage, and even the loss of your business.  

But why is healthcare data such a big deal? Simply put, patient information, or protected health information (PHI), is highly sensitive and a prime target for cybercriminals. Why? PHI contains a wealth of personal details, from medical history to financial information, which can be exploited for identity theft, insurance fraud, and more, making it one of the most valuable types of data on the black market. 

For businesses, this makes HIPAA compliance a top priority. 

 Table of Contents:

• What is HIPAA Compliance

• Top HIPAA Violations  

• HIPAA Automation and Managed Compliance Services   

• Last Thoughts on HIPAA Compliance

• Frequently Asked Questions about HIPAA Compliance

What Is HIPAA Compliance? 

The Health Insurance Portability and Accountability Act (HIPAA) is a federal law enacted in 1996 to safeguard the privacy and security of PHI. HIPAA applies to "covered entities" like healthcare providers, insurance companies, and healthcare clearinghouses, as well as their "business associates" — third-party vendors that handle PHI on behalf of covered entities. 

The law is built on key rules, including the Privacy Rule, which limits who can access patient information, and the Security Rule, which establishes standards for electronic PHI (ePHI). HIPAA also includes the Breach Notification Rule, requiring organizations to report data breaches involving PHI. 

Top HIPAA Violations 

When it comes to HIPAA compliance, some mistakes are more common — and more costly — than others. Let’s explore the top four violations and how your small business can steer clear of them. 

1. Lack of Employee Training 

One of the most frequent HIPAA violations stems from untrained staff mishandling PHI. Employees might inadvertently share sensitive information or fail to recognize phishing attempts. 

How to Avoid It: 

• Conduct regular training sessions on HIPAA policies and the handling of PHI. 

• Use HIPAA automation tools to track and schedule employee training. 

2. Failure to Conduct Risk Assessments 

A risk assessment identifies vulnerabilities in your organization’s data protection measures. Skipping this step leaves you exposed to potential breaches. 

How to Avoid It: 

• Perform annual risk assessments as required by HIPAA. 

• Leverage managed compliance services to streamline the assessment process. 

3. Improper Disposal of PHI 

Disposing of PHI incorrectly, such as tossing paper records in the trash without shredding them, is a major violation. 

How to Avoid It: 

• Implement strict policies for disposing of physical and electronic records. 

• Use certified shredding and data destruction services. 

4. Unauthorized Access to PHI 

Whether it’s a cyberattack or an insider threat, unauthorized access to PHI is a severe breach of HIPAA regulations. 

How to Avoid It: 

• Install robust access controls, such as multi-factor authentication. 

• Monitor systems continuously to detect and respond to unauthorized access attempts. 

HIPAA Automation and Managed Compliance Services 

Achieving and maintaining HIPAA compliance doesn’t have to be an uphill battle. HIPAA automation tools and Compliance as a Service (CaaS) providers can streamline the process, offering the fastest way to get compliant. These services often include: 

• Automated Risk Assessments: Identifying vulnerabilities in your data management processes. 

• Policy Creation and Management: Pre-built templates and guidance to ensure all necessary policies are in place. 

• Training and Awareness Programs: Ensuring employees understand how to handle PHI properly. 

• Continuous Monitoring: Real-time alerts and audits to maintain compliance over time. 

Managed compliance providers can also help small businesses integrate all our frameworks (SOC 2, ISO 27001, NIST 800, HIPAA, and CMMC), offering a comprehensive approach to regulatory requirements. These solutions reduce the burden on internal teams and mitigate the risk of compliance mistakes. 

Last Thoughts on HIPAA Compliance

Navigating HIPAA compliance can be overwhelming, but the consequences of neglecting it are far more damaging. From heavy fines to the loss of patient trust, the risks of non-compliance are significant.

By understanding the common violations and taking proactive steps to avoid them—such as employee training, conducting risk assessments, properly disposing of PHI, and securing access controls—businesses can protect both patient data and their reputation.

Leveraging HIPAA automation tools and managed compliance services can simplify the compliance journey, ensuring that your business remains secure, compliant, and ready to face future challenges.

How BEMO Can Help You Comply with HIPAA

At BEMO, we understand the complexities of HIPAA compliance and offer tailored solutions to help small businesses stay on track. With our Compliance as a Service (CaaS) and HIPAA automation tools, we can guide you through every step of the compliance process.

From automated risk assessments to employee training and continuous monitoring, we ensure that your business meets all HIPAA requirements without the added stress. Our managed compliance services integrate seamlessly with your existing operations, reducing the risk of violations and helping you maintain patient trust while focusing on growing your business.

Frequently Asked Questions about HIPAA Compliance

Who needs to comply with HIPAA?

HIPAA applies to healthcare providers, insurance companies, healthcare clearinghouses, and business associates—third-party vendors who handle protected health information (PHI) on behalf of covered entities.

What is HIPAA automation, and how can it help?

HIPAA automation tools streamline compliance processes such as risk assessments, policy creation, employee training, and continuous monitoring, helping businesses maintain compliance more easily and efficiently.

Can I outsource HIPAA compliance?

Yes, Managed Compliance Services (CaaS) can handle HIPAA compliance for you, helping with everything from assessments and policy creation to employee training and continuous monitoring, reducing the burden on your internal team.

How long does it take to become HIPAA compliant?

The time it takes to become HIPAA compliant depends on the size and complexity of your organization. For smaller businesses with straightforward processes, compliance can often be achieved within 2-6 months. This time frame allows for implementing policies, conducting risk assessments, training employees, and setting up necessary security controls. Using HIPAA automation tools and managed compliance services can speed up this process.

How much does HIPAA compliance cost?

On average, initial compliance costs can range from $5,000 to $15,000, depending on the size of your organization and the level of support needed. This estimate includes risk assessments, employee training, policy creation, and implementing security measures. Ongoing maintenance, including continuous monitoring and annual risk assessments, may cost between $2,000 to $7,000 annually. BEMO offers customizable pricing options for businesses of all sizes, helping you find a cost-effective solution that fits your needs.