By William D. Dyer

Here is a short list of reasons why compliance is not optional for CE’s and BA’s:
1. HIPAA and HITECH requirements are laws, currently in effect, and CE’s and BA’s must be compliant with them right now.

2. The HHS has hired more auditors to actively review CE’s and BA’s for HIPAA and HITECH compliance.

3. The HHS has increased enforcement activities.

4. HITECH SIGNIFICANTLY increased possible sanctions and penalties.

5. State Attorney Generals are actively enforcing HIPAA and HITECH compliance.

6. Civil actions have already been filed.

7. Lawsuits have already been brought about for HIPAA violations because of poor safeguards and inadequate information security and privacy programs.

8. Lawsuits can result in heavy financial compensation payments that can put your business out of business.

9. ARRA funds require not only the risk assessment, but also actions to address risks; e.g., implement policies, procedures, and an effective and appropriate program.

10. Breach pain can include:
• fines, penalties and sanctions
• likely audit
• brand lessens in value
• bad press
• loss of clients, customers and patients
• lawsuits
• loss of insurance coverage and/or increased insurance premiums
• loss of ARRA funds
• loss of health plan contracts

11. Your own employees can report you under the whistleblower laws.

12. If you sign a BA agreement and you have not made a good effort to be compliant prior to signing the agreement you may be guilty of willful neglect, and be subject to criminal prosecution fines, as well as breach of contract.

The antecedent was garnered from correspondence with Rebecca Harold, the nation’s leading privacy, HIPAA, and HITECH expert.
HCP National provides risk management and training as it relates to insurance exposures. We are not in the practice of law or accounting. We are insurance brokers and risk consultants.

Many doctors do not realize that by forming a group of 5 or more MD’s, they can reduce the cost of their medical malpractice by 20% or more. Also, you can get another 5% off, and CME credits, for taking risk management classes through your malpractice insurer. Additionally, by being board certified you can get another 5% off. Lastly you can add your PA’s/NP’s to the group policy for no extra charge, so they will not be charged any premiums.

Let’s look at a case study:
5 Surgeons, who were with the same insurer, formed a corporation to contract with PPO’s, IPA’s and HMO’s. Each MD maintained his/her own practice.

Originally, the combined premiums totaled $275,000. We negotiated a group discount with a prospective risk management credit (the insurer gave them a RM credit with the promise that all doctors would complete the online course within 12 months).

After discounts the combined premium totaled $165,000. The doctors did not have to complete applications, or move insurers. They received their own bills, and each doctor saved $22,000 per year.

These are some of the creative ideas that we provide at HCP National. We are “The Health Care Industries Insurance Brokers.” We are experts in group medical malpractice insurance and solo surgeon malpractice and obstetrician malpractice in CA, AZ, CO and NV.

NOTE THE ABOVE IS A GENERAL DISCUSSION ABOUT HOW COVERAGES MAY WORK. YOUR INSURANCE POLICY AND ALL ADDENDUM ARE THE ONLY AUTHORITY OF HOW YOUR COVERAGE WORKS. DO NOT RELY ON THIS ARTICLE AS AN EXPLANATION OF YOUR COVERAGE. HAVE YOUR ATTORNEY REVIEW YOUR ENTIRE POLICY WITH YOU TO DETERMINE WHAT IS AND ISN’T COVERED.