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What is a HIPAA corrective action plan?

Written by Farah Amod | Sep 5, 2024 1:29:37 PM

A HIPAA corrective action plan is the enforcement process when a covered entity or business associate violates HIPAA regulations. It rectifies underlying compliance issues and implements safeguards to protect patient information. 

 

Understanding the purpose of a HIPAA corrective action plan

A HIPAA corrective action plan is designed to address the underlying privacy and security compliance issues that led to the violation. OCR may determine that further corrective action is necessary after conducting an investigation, entering into a resolution agreement, and imposing fines. 

A corrective action plan ensures that the covered entity or business associate takes significant steps to rectify the compliance issues. A corrective action plan typically imposes strict requirements, such as performing a closely monitored security risk analysis and developing a risk management plan. These measures are mandatory for organizations to have in place under the security rule, and the absence or improper execution of them often results in fines.

Read more: What is a HIPAA resolution agreement? 

 

Components of a HIPAA corrective action plan

A HIPAA corrective action plan outlines specific measures that must be undertaken to address the compliance issues. The plan may span a year or several years, depending on the severity of the violation. During this period, the entity must regularly report to OCR and submit to audits to demonstrate their progress. Some of the key components that a corrective action plan may include:

Adjustments to policies and procedures

A common requirement under a corrective action plan is developing, maintaining, and revising policies and procedures. The entity must provide a copy of these policies and procedures to HHS by a specified date and implement them upon HHS approval. This measure ensures that the organization has proper guidelines for compliance with various aspects of the privacy rule.

Regular reporting

A covered entity may be required to provide a written report to HHS summarizing the status of the corrective action plan within a specified deadline. Additionally, the entity may need to submit annual written reports until HHS determines the plan's completion. These reports allow HHS to monitor the entity's progress and ensure they are actively working to rectify the compliance issues.

Compliance training and education

A corrective action plan may mandate the implementation of compliance training and education programs to strengthen compliance efforts. This measure ensures that all employees and relevant individuals within the organization are well-informed about HIPAA regulations and their responsibilities in safeguarding patient information. 

Security risk analysis and risk management

One of the critical elements of a corrective action plan is the requirement to perform a security risk analysis and develop a risk management plan. The security risk analysis helps identify vulnerabilities and assess the potential risks to PHI's confidentiality, integrity, and availability

Third-party monitoring

In some cases, OCR may require the entity to hire a third party at its own expense to monitor compliance. This additional measure ensures independent oversight and provides assurance that the corrective actions are being implemented effectively. Third-party monitoring adds an extra layer of accountability and helps maintain the integrity of the corrective action plan.

Read more: How to avoid a HIPAA corrective action plan

 

Consequences of non-compliance 

Failure to comply with the terms of a corrective action plan can have serious consequences. It is considered a breach of the underlying resolution agreement and may lead to additional penalties. Therefore, covered entities and business associates must diligently adhere to the requirements outlined in the plan, submit the necessary reports, and implement the specified security measures within the set timeline.

 

In the news

The U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) announced a settlement with LA Care, the largest publicly operated health plan in the nation, addressing potential violations of the Health Insurance Portability and Accountability Act (HIPAA). LA Care, which provides health coverage through various state, federal, and commercial programs, has agreed to pay $1,300,000 and implement a detailed corrective action plan to address identified deficiencies in protecting electronic protected health information (ePHI). 

The corrective action plan mandates LA Care conduct a risk analysis, develop a risk management plan, and implement and enforce policies and procedures to ensure ongoing compliance with HIPAA Security Rules. OCR will monitor this plan for three years to ensure the health plan adequately safeguards patient information and adheres to HIPAA requirements. 

 

FAQs

What is a corrective action plan and how does it relate to healthcare security? 

A corrective action plan (CAP) is a detailed, formalized approach that outlines specific steps an organization must take to address and rectify issues of non-compliance with regulatory standards. In healthcare, a CAP is necessary for identifying and addressing vulnerabilities in the protection of protected health information (PHI), ensuring adherence to HIPAA regulations, and preventing future breaches or violations.

 

Why is a corrective action plan beneficial for HIPAA compliance? 

A corrective action plan is beneficial for HIPAA compliance because it systematically addresses the causes of non-compliance, implementing measures to rectify deficiencies and prevent recurrence. By adhering to a CAP, healthcare organizations demonstrate their commitment to protecting PHI, maintaining patient trust, and avoiding potential fines and legal consequences associated with HIPAA violations.

 

What are the potential risks associated with not having a corrective action plan under HIPAA?

  • Ongoing non-compliance: Continued violations of HIPAA regulations, increase the likelihood of penalties and legal actions.
  • Data breaches: Persistent vulnerabilities that could lead to unauthorized access to PHI and data breaches.
  • Financial losses: Costs associated with fines, legal fees, and remediation efforts due to unresolved compliance issues.
  • Reputational damage: Loss of patient and partner trust due to ongoing compliance failures and data breaches.
  • Operational disruptions: Inefficiencies and disruptions in healthcare operations caused by unresolved security and privacy issues.

See also: HIPAA Compliant Email: The Definitive Guide