Health Insurance Portability and Accountability Act: blessing or curse?

The health care industry has undergone dramatic changes over the past decade. Advances in technologies are being implemented, making the health care industry more complex. In response to increasing administrative costs, the inability to control the collection and distribution of an individual's health information, and the rising costs of health care, the Health Insurance Portability and Accountability Act (HIPAA) was passed as part of the Social Security Act in 1996 to address the emerging complexities of the industry. Over the past years, the health care system has focused efforts on compliance with HIPAA regulations. HIPAA compliance can improve efficiency, reduce costs, and protect the privacy of personal medical information; however, some health care providers and other health care entities have experienced various setbacks in efforts to comply with HIPAA. Health care providers may be reluctant to comply with HIPAA regulations because the rules are complex and result in short-term increases in administrative costs. Nevertheless, long-term HIPAA compliance could allow the health care system to improve its effectiveness and efficiency in health care delivery.