BACKGROUND

Why was legislation needed?

Rapid growth of health care Internet and intranet applications to transmit and share patient information, such as diagnoses, radiological images, lab tests, and prescriptions
Advancements in the computerization of patient medical records
Increasing use of electronic prior authorizations for provider services, as well as claims submission and payments
Use of e-mail as a communication tool between caregivers and their patients
Public concerns about privacy bring demands for greater security
- 20% of consumers believe their health information has been used disclosed inappropriately
- 17% of Americans report that they have taken action to avoid the inappripriate use of their information, including providing inaccurate information to health care providers, changing physicians, or avoiding care altogether
- The Association of American Physicians and Surgeons reports that 78% of its members have withheld information from a patient's record due to privacy concerns and 87% of its members have had a patient request that information be withheld
Lack of standardization for the collection, storage, and transmission of health data → increased administrative costs AND decreased utility of data
Increasing health care costs → demand for uniform health care data to evaluate alternative coverage and treatment approaches

We have laws in this country to protect the personal information contained in bank, credit card, and other financial records. Our citizens must not wait any longer for protection of the most personal of all information — their health records.

This rule makes sure that private health information doesn't fall victim to the progress of the information and technology age, where an array of data is readily available in computer sustems and too often is just a keystroke away from being accessed.

Statement by Tommy G. Thompson
Secretary, U.S. Department of Health and Human Services
Approving the Patient Privacy Rule April 12, 2001