Glossary
Compliance & Governance

HIPAA Compliance

By: Alec Hollingsworth
Updated:  
July 16, 2025

Definition:

HIPAA compliance means following federal standards to protect patient health information from unauthorized access or disclosure.
HIPAA Compliance refers to adherence to the Health Insurance Portability and Accountability Act (HIPAA), a U.S. federal law that sets standards for protecting sensitive patient health information. Organizations that handle protected health information (PHI) must implement administrative, physical, and technical safeguards to ensure privacy and security. This includes proper data storage, secure communication methods, staff training, and formal policies. HIPAA applies to healthcare providers, insurance companies, and any entity that processes PHI, as well as their business associates. Noncompliance can result in substantial penalties and reputational damage. For nonprofits dealing with health data—such as those offering medical services or support—HIPAA compliance is crucial to maintaining trust and legal standing.

Key Takeaways

  • HIPAA sets rules for safeguarding health information.
  • Nonprofits handling health data must comply to avoid penalties.
  • Compliance involves secure storage, access controls, and staff training.

Why It Matters

HIPAA compliance protects private health information, avoids legal penalties, and maintains organizational trust.

Real World Example

A nonprofit that provides counseling services collects client health histories and therapy notes. To comply with HIPAA, they implement secure login protocols, encrypt client files, and limit data access to authorized staff only. They also train their team on privacy best practices and ensure all electronic communications containing health data are encrypted. By following these steps, the organization avoids legal risks and reassures clients that their sensitive information is protected. If a breach occurs, they have policies in place to promptly notify affected individuals and authorities, further demonstrating their commitment to privacy.

Frequently Asked Questions

Who needs to comply with HIPAA?

Any organization or individual handling protected health information in the U.S., including nonprofits offering health-related services, must comply with HIPAA.

What are the main requirements of HIPAA compliance?

Requirements include securing health data through technical safeguards, training staff, establishing privacy policies, and reporting breaches if they occur.

What are the penalties for noncompliance?

Penalties range from significant fines to legal action, depending on the severity of the violation and whether it was due to negligence.

How does Keela support HIPAA compliance?

Keela provides secure data storage, user access controls, and communication tools to help nonprofits handle sensitive health information responsibly.

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