Gartner Says Delay of HIPAA Privacy Regulation Would Be a Grave Mistake

Business Wire, March 14, 2001

Business/Health Editors, Political Writers

STAMFORD, Conn.--(BUSINESS WIRE)--March 14, 2001

According to Gartner, Inc. (NYSE: IT and ITB), the recently finalized Health Insurance Portability and Accountability Act (HIPAA) patient privacy regulation provides the foundation and security insurance necessary to transform the healthcare industry into an e-healthcare industry. Without the HIPAA patient privacy regulation, the e-business transformation of healthcare in the United States is in jeopardy. According to Gartner, the Bush administration and Congress have a prime opportunity to advance healthcare by ensuring that this regulation moves forward unimpeded. In Gartner's opinion, delay or nonapproval of the HIPAA patient privacy regulation would be a grave mistake.

The privacy regulation would allow for patient information to be easily accessed by healthcare practitioners via the Internet while ensuring stringent privacy measures. According to Gartner, the use of the Internet and its potential to improve the quality of healthcare, lower the cost of services, broaden consumer choices, promote wellness and help manage chronic diseases are at stake.

"This regulation is not only essential for the transformation of the healthcare industry, but also to HIPAA itself," said Jim Klein, vice president and research director for Gartner. "HIPAA privacy is the foundation of HIPAA and delaying or removing the privacy component will likely have a domino effect -- potentially taking all of HIPAA down with it."

For e-healthcare to be successful, patients must feel secure in allowing their personal health information to be posted to the Internet strictly for legitimate medical purposes. That can be achieved only if strong federal protections exist that ensure confidentiality of their medical records. "Otherwise, patients simply will not cooperate or participate in e-health relationships," said Gartner's Klein.

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