Purchasing goods and services online is ubiquitous today, with the majority of customers having few if any reservations about transmitting their sensitive financial information electronically.
However, the same has not been true of the healthcare landscape, which is governed by the Health Insurance Portability and Accountability Act (HIPAA), a set of federal measures designed to protect the confidentiality and integrity of patient health information.
As the healthcare industry finally begins to jump on the bandwagon and starts to accept online payments, understanding the role that HIPAA plays in medical payment processing is a must.
HIPAA defined.
This federal law mandates that healthcare providers take steps to protect patient privacy. Protected health information includes name, address, health insurance and Social Security number, photographs, and medical images.
In 1996, HIPAA was passed by the U.S. federal government. This law is designed to safeguard the privacy of patients, ensuring that no one gains unauthorized access to vital details such as patient name, address, health insurance and Social Security number, photographs, medical images, medical results, lab records, and more.
If a third party needs access to patient health information, they must get permission first, unless having access to the information is necessary to perform care.
The foundations of HIPAA-compliant payment processing.
HIPAA is an overarching law protecting patients’ medical records while safeguarding their sensitive payment data.
HIPAA forms the legal backbone for safeguarding patient health and financial information. While the law is primarily designed to protect the privacy of health records, it also extends to patients’ financial details during the processing of medical payments.
Therefore, any system that is used to take patient payments must contain mechanisms that prevent unauthorized access, misuse, or data breaches.
The law applies to the ways in which patient financial data is stored, transmitted, and managed. Consequently, payment processing providers must adhere to specific standards of encryption, transmission protocols, and regular security audits.
How to maintain HIPAA compliance for online payments.
As a healthcare provider, you are well aware of the importance of protecting patient privacy. When it comes to accepting online payments, this is best accomplished by finding a company that can provide payment processing for healthcare businesses.
Although data security and privacy are high priorities in the conventional retail space, the need to remain in compliance with HIPAA makes payment processing in the healthcare sphere even more complex.
Fortunately, medical practice owners do not need to navigate this complicated space without help.
Telemedicine payment providers are uniquely qualified to furnish you with a complete set of features that will accentuate the patient experience, boost compliance, and remain in full compliance with HIPAA.
Features to look for in a HIPAA-compliant payment processor.
Not all payment processing for healthcare businesses is created equal. Look for features including data encryption, secure authentication, tokenization, regular audits, and integration with EHR systems.
Excellent healthcare is built upon a foundation of trust that you build with your patients. One of its hallmarks is the provision of ironclad payment methods that are in complete compliance with the federal law that protects sensitive medical and payment data.
When you set out to find the telemedicine payment processing provider that is right for your practice, you will quickly discover that you have a variety of choices, each offering its own selection of options. As you navigate this confusing array, start by focusing on your business’s goals. Then be sure that you choose a company that, at minimum, offers a set of capabilities that will ensure that it remains firmly in compliance with HIPAA.
First, focus on data protection. Your provider should shield patient payment details with robust data encryption. These masking procedures transform sensitive data points into an unreadable series of random characters that hackers cannot exploit.
Next, all systems must be safeguarded with secure authentication. This helps to prevent unauthorized parties from gaining access to the data you are storing or transmitting. Multi-factor authentication gives you an added layer of protection, helping to ensure that access is only granted to those entitled to it.
Next, be sure that your processor uses tokenization. This method replaces sensitive data with unique identifiers or tokens that cannot be used outside the system.
In spite of their best efforts, even the finest telemedicine payment processors still might be vulnerable to security threats.
After all, bad actors never sleep and are constantly on the prowl in search of ways to usurp even the most robust digital safety fortresses. For that reason, it is crucial that the provider you choose conducts regular security audits to identify vulnerabilities and ensure ongoing compliance with HIPAA regulations.
Finally, the provider you select should enable you to seamlessly integrate with other electronic health record (EHR) systems. This enables your billing company to provide streamlined services that boost payment rates and increase patient trust and satisfaction.
The consequences of noncompliance.
Failing to meet HIPAA standards has negative ramifications. These include financial penalties, reputational damage, and legal consequences.
Adhering to HIPAA is mandatory. Failing to do so can result in a number of serious consequences that you want to avoid.
Depending on the level of negligence, violating HIPAA provisions can cost you. Financial penalties range from $100 to $50,000 per incident.
The price goes beyond what you will feel in your pocketbook. Your practice can suffer serious reputational damage. Eroding patient trust can cause them to seek care elsewhere, and could lead to publicity that deters new clients from seeking care from you.
The compromising of patient data also quickly grabs the attention of litigators. Should your online payment processing company be involved in a data breach stemming from a lack of HIPAA compliance, you might be the subject of a hefty lawsuit.
Complying with HIPAA benefits both you and the patients you serve. When you ensure that the data that you store and transmit during their online payments is protected and kept private from endpoint to endpoint, you will gain client trust while successfully adhering to the strictures of this important federal mandate.
Partnering with a reliable payment processor with a solid reputation in the medical field is one of the most effective steps you can take to protect both your healthcare business and the patients you serve.
