Industrial-Organizational Psychologists and HIPAA Laws

What Is HIPAA and How Does It Impact the Practice of I-O

Practitioners vying for successful careers in the health and human services fields have to acclimatize to the ever- changing demands of managed care systems and federal regulations. The invariability of industrial change requires practitioners to be cognizant of not only the clinical needs, but also the legal needs of their clients. When facing the constraints of operating in myriad settings regulated partially or in totality by Managed Care Organizations (MCOs), it is understandable why practitioners should make concerted efforts to remain abreast of changes. “The mental health system was one of many affected by the belief that government was an inefficient producer, and that private organizations, operating under market conditions, were better suited to deliver quality services at low prices” (Donohue & Frank, 2000). Cost containment, efficiency and efficacy, legality, and ethics are commonplace facets practitioners are encouraged to be mindful of in the managed care arena.

Changes such as those made in the way health care information is handled on a daily basis, is the tenet of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). “In conjunction with HIPAA’s new standards for the transmission of health information, the Department of Health and Human Services (HHS), anticipating concerns about the privacy of electronic communication, developed a separate privacy rule related to patient records” (American Psychological Association Practice Organization, n.d.). Privacy according to HIPAA refers to the application of effective policies and procedures and business service agreements to control the access and use of patient information. To initiate precursory and maintenance measures, practitioners should make continued strides to remain apprised of developments and changes in the transaction, privacy, and security Privacy Rules of the HIPAA law. “ Defining standards and transaction sets for transmitting or handling electronic claims, remittance, and eligibility information and standards for assuring and protecting the privacy or security of patient- identifiable information” (VantageMed, 2003) becomes the practitioner’s duty (Centers for Medicare and Medicaid Services, 2004).

A multitude of procedures are followed preceding and concomitant with the implementation of HIPAA compliance guidelines. The scope of HIPAA is vast with paperwork and administrative simplification as the goal of the multifaceted law as consequences are applicable to all professionals in the healthcare industry. HIPAA requires psychologists to change some of the ways they conduct business and handle privacy issues. “HIPAA called for the creation of national standards and requirements for the electronic transmission of health information and forms” (American Psychological Association Practice Organization, n.d.).