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Enacted into law in 1996, the Health Insurance Portability and Accountability Act (HIPAA) issued regulations relating to the management of medically sensitive documents. The Privacy Rule became effective on April 14, 2003, while the Security Rule deadline was April 21, 2005.

HIPAA affects any organization that creates, receives or maintains healthcare information, including hospitals, health maintenance organizations and healthcare insurers. HIPAA requires that Protected Health Information (PHI) must be kept secure for at least six years, or two years after a patient's death. This includes patient medical records, billing records, authorization forms from physicians and all communications between patient and physician.

Under the act, Diversified Record Management is a Business Associate. Be assured that we have taken every precaution and followed every guideline to assure strict adherence to these mandates at all levels of our organization.

HIPAA noncompliance can have devastating consequences. Organizations are exposed to severe fines and penalties, and also to litigation and negative publicity. Noncompliance can result in the following:

• Civil fines of up to $25,000 a year
• Criminal penalties reaching $250,000 and up to 10 years in prison

DRM will closely follow any new developments and regulations emerging from HIPAA and will quickly implement and update our own procedures to assure that DRM as well as our clients meet the compliance requirements of the Act.

Protecting your records, whether health-related or not, continues to be the highest priority at Diversified Record Management.