HIM500M2 - 1 5-2 Moving Toward Compliance 5-2 Final Project Milestone Two Moving Toward Compliance Faizan Malik Southern New Hampshire University

HIM500M2 - 1 5-2 Moving Toward Compliance 5-2 Final...

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1 5-2: Moving Toward Compliance 5-2 Final Project Milestone Two: Moving Toward Compliance Faizan Malik Southern New Hampshire University May 3 rd , 2020
2 5-2: Moving Toward Compliance Health Regulations and Laws Ramifications Finances In addition to the negative connotation associated with a violation of health regulations and laws, Featherfall Medical Center can also experience significant financial repercussions. As such, following federal and state regulations such as HIPAA is crucial for all staff members both clinical and non-clinical. As stated by Snell, having a thorough understanding of the federal requirements for HIPAA compliance also means that healthcare organizations must understand the potential consequences of HIPAA violations, which could lead to heavy regulatory fines. Penalties for HIPAA non-compliance are based on the level of negligence and the number of patients affected. Violations are broken into two categories; reasonable cause and willful neglect. Reasonable cause, where a person did not know an act was a HIPAA violation even if reasonable diligence was exercised, carries fines ranging between $100 to $50,000 per incident. Willful neglect, or the conscious, intentional failure or reckless indifference to HIPAA compliance, carries fines ranging from $10,000 to $50,000 per incident and can also result in criminal charges with subsequent legal fees. The maximum penalty is $1.5 million per year for repeat violations of an identical provision. Furthermore, Featherfall Medical Center can be subject to civil lawsuits stemming from HIPAA violations. Although there is no private cause of action within the

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