Woman in scrubs choosing a HIPAA-compliant database provider.

Why health care businesses require HIPAA compliant databases

Health care data is sensitive. People trust their doctor’s office, insurance providers, and other health service professionals to keep their data safe and private. 

A violation of this data not only means monetary loss but also loss of business credibility and customers’ trust. That’s why every health care business needs to be mindful of where it stores its data and use only HIPAA compliant databases. 

But what is HIPAA compliance and how do you find a reliable database provider? Let’s go into detail.

Here’s what you’ll learn:

Key points

  • The Health Insurance Portability and Accountability Act (HIPAA) is a law that dictates standards for how businesses need to handle protected health information (PHI).
  • Hospitals, clinics, labs, research institutes, insurance companies, and all other businesses that deal with sensitive health care information need to use a HIPAA-compliant database to store PHI.
  • HIPAA-compliant databases have additional security measures, like data encryption and multi-factor authentication (MFA) to protect sensitive data. Regular databases don’t have these security controls at the same granular level.
  • When choosing a HIPAA-compliant database service, consider your requirements, along with the provider’s business associate agreements (BAAs), business history, and support and scalability plans.

What is HIPAA compliance?

HIPAA compliance is the process by which businesses ensure that protected health information (PHI) is kept safe and private according to the standards set by the act.

The Health Insurance Portability and Accountability Act (HIPAA) was passed in 1996 to protect the privacy of patients when handling and transferring sensitive health care data. 

This data includes electronic health records (EHR), health insurance information, lab reports, medical test reports, and any other health information that is associated with personal identifiers.

HIPAA directs businesses on how to handle this information through a set of standards. These standards govern processes such as storing data in secure systems, assessing risks to data privacy, and implementing security measures like user authentication and access controls. 

Why health businesses should opt for HIPAA-compliant databases

More than 5,130,000 health care records were breached in February 2024 alone. While any data breach can affect business organizations, a breach of health care information can impact people on a personal level.

Sensitive health data, such as medical test results, can create embarrassing or stigmatizing situations. It can also be used for fraudulent activities. However, HIPAA-compliant databases protect this information through various physical and technical security measures. 

Here are some of the many reasons why businesses in the health care industry should only rely on HIPAA-compliant databases.

Benefits of choosing a HIPAA-compliant database.

Complete data security

Since privacy is the most important concern of HIPAA, database security is an utmost priority. HIPAA-compliant databases have multiple layers of security that regular databases may not have. 

The best HIPAA-compliant databases include:

  • Data encryption: Data is converted into an unreadable form to protect it from being breached during transfers or migration. Once it reaches its destination, it’s restored to its original, readable form.
  • Authorized access: Authorized people are only allowed access to the data and functions they require. For example, only certain roles might be allowed to copy data from a HIPAA-compliant database, while other roles can only read it.
  • User authentication: Several procedures, such as multi-factor authentication and biometric verification, are used to authenticate a user before providing access.
  • Risk monitoring: Experts continuously monitor the database to check for any technical vulnerabilities that might compromise the data’s integrity.
  • HIPAA-trained staff: The database is only handled by staff who are trained to comply with HIPAA regulations. That means there’s minimal human error and a low risk of a data leak from manual interventions.

While you can implement many of these security measures in regular databases, they might not be at the same granular level. Even if you choose to modify a regular database for high security, understanding and implementing the right measures can be a hassle.

However, for HIPAA-compliant databases, these security measures are a prerequisite, making them the best choice for storing sensitive information.

Protection during data migration and transfers

Health care data usually isn’t limited to a single business or institution. It’s often transferred between multiple businesses to get a holistic picture of a patient’s health. 

For example, a clinic may transfer records to another hospital if a patient is seeking treatment at both places. Or, a hospital might share patient information with insurance companies to validate a patient’s claims. 

Without proper security during migrations, PHI can possibly be shared with third parties in transit, violating HIPAA regulations

To prevent this, you can rely on HIPAA-compliant databases to securely transfer PHI between different parties by creating business associate agreements (BAAs). These agreements outline the responsibilities of each party when dealing with sensitive information, so the data transfer takes place only between trusted parties.

Dedicated infrastructure

HIPAA-compliant databases have their own infrastructure requirements. They require dedicated, isolated servers that ensure the privacy and security of all databases hosted in the infrastructure.

Usually, HIPAA-compliant databases are hosted together in an infrastructure that doesn’t contain regular databases. This protects HIPAA-compliant databases from malicious neighbors who might try to access data from within the infrastructure. 

Upholding customer trust

Customers trust health care institutes to keep their information secure. According to Statista, health care is the second-most trusted sector when it comes to digital services.

By hosting patient data in HIPAA-compliant databases, you uphold its security and integrity, making your business more trustworthy. 

Factors to consider when choosing a HIPAA-compliant database

All HIPAA-compliant databases are extra cautious about data security. But not all of them are built equal. When choosing a database provider for your business, consider these factors to make the right choice.

Data requirements

If you’re a new health care organization looking to host your data on a server, your requirements will differ from an established business that wants to switch databases. 

Before looking for a HIPAA-compliant storage solution, assess your data requirements to zero in on what you want to prioritize in the database.

Does your database require robust migration support? Or should it be easy to set up for your initial data hosting needs? Are there other agreements such as the HITECH Act that you need to comply with?

Assessing these factors will help you determine the features, functions, and support you require in a HIPAA-compliant database.

Type of solution

You also need to determine whether you need an on-premise or cloud-based solution. 

On-premises solutions are hosted at your own business location. This means you’re responsible for implementing physical and technical safeguards.

While this appears safe, hosting an on-premise server is cost-intensive. You’ll need a dedicated team of HIPAA-trained staff who work on the servers round the clock. You’ll also require other experts to resolve issues in case of vulnerabilities and data breaches. 

Moreover, scaling an on-premise solution is harder as you’ll need to add physical servers and also increase the number of staff members. 

If you have growing or large data requirements, it’s better to consider cloud storage over an on-premise solution. HIPAA-compliant cloud services are hosted at third-party data centers with secure infrastructure. 

Third-party service providers also have HIPAA-trained staff and other experts to secure electronic protected health information (ePHI). Opting for cloud-based databases is not only cost-effective but also easier for scaling.

Existing software systems

If you’re already using a health care tech stack, such as electronic health record (EHR) systems, make sure to choose a database that’s compatible with your existing technology.

Most HIPAA-compliant databases seamlessly integrate with major EHR and EMR software. For in-house or niche tech solutions, check with HIPAA-compliant database providers for third-party APIs to ensure hassle-free integrations.

Risk assessments

For established health care businesses that want to switch databases, it’s essential to check for historical data breach records. These records give you insights into any vulnerabilities that you need to address when migrating data.

If you’ve faced a data breach before, determine the cause and risk level in your present systems. Research any additional security features you might require to prevent those incidents when shifting to a new data system.

Data access controls

Manual access to HIPAA-compliant databases needs to be monitored and controlled to prevent any breaches. If you have a large number of people or multiple roles accessing the health care database, make sure it can provide controlled access.

Look for security features like multi-factor authentication (MFA) and role-based access that empower you to moderate access to sensitive medical records. Also, limit access to the database to trusted service providers that also protect data privacy.

Budget

Determine a rough budget before looking for a service provider. Your budget depends on the extent of your data hosting requirements, the type of storage solution, and the number of features you need.

For example, opting for a fully managed HIPAA-compliant database can be more expensive than choosing a self-managed option. Consider all these factors to create a budget and then zero in on a list of service providers in your budget range.

How to choose a HIPAA-compliant database provider

Maintaining a HIPAA-compliant database can be tedious. Since there are many factors involved in maintaining a HIPAA-compliant solution, businesses usually prefer to outsource it to a third-party service provider.

However, you need to ensure that the service provider is also well-versed with HIPAA and maintains the integrity of the data. Here’s how you can choose the right HIPAA-compliant database provider.

Security measures

Regardless of your data requirements, every HIPAA-compliant database provider needs to have some basic security measures in place. This includes data encryption, access controls, firewalls, and malware protection. 

However, health care cybersecurity attacks are different compared to other industries. For instance, more than 90 percent of health care cyberattacks are in the form of phishing. Protection from those attacks requires advanced security features such as website blacklists and email filters.

Despite the security measures, data breaches might still take place and need immediate attention to minimize damage. Service providers that constantly monitor the HIPAA database for vulnerabilities and quickly resolve any potential breaches can better protect sensitive data.

For example, Liquid Web provides round-the-clock onsite support to physically and technically protect HIPAA-compliant databases.

Business associate agreements

A business associate is any partner that provides services to a HIPAA-covered entity. If you’re outsourcing your database hosting, your hosting provider becomes the business associate.

All HIPAA-compliant service providers sign a business associate agreement (BAA). However, you need to make sure their BAA covers:

  • The scope of their responsibilities and functions as a business associate.
  • How they store and destroy PHI.
  • The security measures they implement to protect PHI.
  • Maintenance of access and audit logs.
  • Your responsibilities as a covered entity.
  • Additional BAA requirements if any other third-party services are involved.

BAAs aren’t just terms and conditions to sign away without a second thought. Make sure to read over them thoroughly and look for any warning signs beforehand. 

For example, your vendor needs to have their own customized BAA tailored to the services they provide. If they use a generic template or have a vague BAA, it might not cover all the required terms, leaving you legally exposed. 

Another factor to look for is how they handle breaches. Legally, business associates are required to issue personal, media, and covered entity notices in case of a breach. If a BAA tries to shift the responsibility of notification back to you, this is a warning sign to steer clear of them.

Backup and recovery

Safeguarding health data also includes backup and recovery in case disaster strikes. However, since data recovery involves creating additional copies of PHI and storage of data in different locations, you need to make sure the backups are in compliance with HIPAA. 

Your service provider must encrypt all data backups, host them in secure locations, and give retrieval access only to authorized personnel. All safety procedures that are implemented for the original database also apply to data backups.

These backups should only be accessed for disaster recovery plans or emergency control situations. HIPAA requirements ask all entities to retain data for a period of six years, after which it should be securely destroyed. Ensure that your vendor follows this rule for backups, too.

Business history

A service provider’s business history can give you insights into their data management practices. Inquire with the provider if any of their clients have previously gone through a data breach. 

Check how they handle vulnerabilities and data breaches. Do they provide timely support? Do they promptly inform the clients and other concerned parties? Look through their case studies to see if they have experience with clients similar to your business.

Also, check through news portals to see if the service provider was involved in any malpractice, such as the sale of PHI. Make sure that the vendor has a clean record and is handling all data storage requirements legally.

Scalability

As the health care market continuously grows, it’s best to opt for a scalable data storage solution that accommodates your data requirements for the long term. Check for various HIPAA-compliant storage plans offered by a service provider.

For example, if your data requirements fluctuate, you might want to choose a flexible or tiered pricing plan as opposed to a fixed one. 

For fixed monthly or yearly plans, check how much they charge for additional data requirements and how quickly they can fulfill them.

Support

Check if the vendor provides quick and timely support in case of any issues. Your service provider should have a dedicated contact line and a team of experts who understand HIPAA compliance to address any questions you have.

Ideally, a single point of contact or a dedicated team should handle each database to prevent unauthorized access. In case you need multiple support personnel to solve queries, ensure that the service provider limits access and revokes it when not needed.

Final thoughts: Choosing a HIPAA compliant database provider

HIPAA compliance is crucial for all businesses dealing with PHI. If you’re a health care provider not using a HIPAA-compliant database, you can attract fines and also lose the trust of your customers.

Due to the highly sensitive nature of health care data, you need a trusted service provider like Liquid Web to handle your HIPAA compliance requirements safely.

Liquid Web’s high availability database hosting has security features such as Acronis backups to keep your data protected. You also get 24/7 expert support and failover services to ensure your server is always up and secure.

Ready to switch to a HIPAA-compliant database? Check out high availability database hosting plans by Liquid Web.

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