Can you guess how many breaches were reported in the medical provider industry and health care industry in 2015? Believe it or not, there were 18 reports. Over 10 million people had their data compromised IN JUST 1 BREACH. It’s easy to see how big of a deal this is.
Startups such as Synapse (co-founded by Tony Loeser) have started using the cloud to form new tech that requires greater security for the patients involved. Flatiron Health is another startup on this list. And loads of regulations are involved in patient data.
These startups have to follow the extremely-regulated HIPAA. This is in place to help protect the private information of the clients. Data security is of the utmost importance in this day and age, and startups must meet these strong demands on a constant basis.
Medical Records: Behind The Electronic Curve?
Here’s some interesting information: in 2008, there were less than 5% of physicians using electronic medical records. So, where did issues arise? Well, how easy is it to remember all of your past appointments? When were your last shots? What year did you have surgery? These questions can be difficult to answer based off of memory alone. The only way to get this information would be to submit requests to the ridiculous paper jungle of healthcare. What happens when patients rely on memory? Well… many issues arise.
Human treatment isn’t similar to automated business solutions. This could be why medical records have fallen behind in the electronic records industry. Here’s something interesting: paper-based records are still considered the “gold standard.” There are still some issues to be solved where medical records meet digitalization.
Regulation In The Medical Industry
The HIPAA (Health Insurance Portability and Accountability Act) helped enable the industry of healthcare to begin digitizing records and billing. The HIPAA requires a privacy rule which gives guidance on the rights of patients, disclosure, and protections in general. It also requires a security rule which handles technical safeguards along with physical and administrative protections.
As technology grew, developers had plenty of ideas for healthcare. But the new regulations also struck fear in the eyes of these developers, as unintended consequences arose.
It’s tough to consider a startup when there is so much negative news, such as the massive hack of Premera along with the data breach of UCLA. Electronic data requires extra security, which has been a main source of fear in the eyes of developers. Check this out: hackers would rather have your medical data than your credit card info. That’s horrifying, right?
Your Startup Can Be Eligible
HIPAA compliance is going to be of the utmost importance. If you have any common questions, you should be able to easily find the answers. The health care and medical industry is huge. And there’s plenty of opportunity for growth if you’re willing to comply and protect the private information of the patients involved. Be sure to look into the Continuity of Care Document as you consider your startup. This is serious business.