The importance of HIPAA-compliant forms - a guide for startups

Healthcare startups are as committed to protecting their patients' privacy as they are to providing them with quality care. But many are unsure about how HIPAA applies to their web forms. This can lead to costly breaches, hefty fines, and loss of patient trust. That’s why it’s important to understand what HIPAA compliance means in the context of digital forms and ensure that both the forms and the systems they integrate with meet the necessary security and privacy standards.

HIPAA made simple

If your healthcare business handles patient information, you’re likely aware that HIPAA (Health Insurance Portability and Accountability Act) requires secure management of protected health information (PHI). PHI includes patients’ medical records, diagnosis and treatment plans, billing and insurance details, and personal identifiers. 

Business entities working with PHI that must comply with HIPAA laws include: 

• Healthcare providers: Includes doctors, hospitals, clinics, and any other medical professionals who provide care to patients.
• Health plans: Insurance companies and health maintenance organizations (HMOs). 
• Business associates: Third-party vendors, like medical billing services or IT companies, that handle PHI on behalf of healthcare providers and health plans. Form builders are also business associates. 

HIPAA requires them to:

• Securely manage PHI: Protect patient information and obtain their consent before sharing it.
• Provide patient access: Grant patients access to their personal health records when requested.
• Safeguard electronic PHI: Implement security measures for electronic PHI and conduct regular risk assessments.
• Notify patients of breaches: Inform patients immediately if there’s a security breach involving their information.

Data breaches and patient access issues have cost health organizations millions in fines and legal fees, so it’s vital to take steps to HIPAA compliance. 

How HIPAA affects healthcare web forms

HIPAA governs how protected health information (PHI) is collected, transferred, stored, and accessed online. This means that healthcare organizations including startups must ensure that any web forms used to gather patient data comply with strict security and privacy standards. 

Let’s break down the critical considerations: 

Data collection and transmission

HIPAA requires enhanced security measures during the collection and transmission of PHI, ensuring that sensitive information is not exposed to unauthorized access. Key elements include:

Encryption protocols: Encryption converts data into an unreadable format that can only be decrypted by authorized recipients. Web forms must use encryption protocols such as SSL/TLS (Secure Sockets Layer/Transport Layer Security) to secure PHI as it moves between systems.  

SOC 2 Type II Certification: This certification evaluates an organization’s security practices, including controls around data integrity, availability, and confidentiality. A form builder with SOC 2 Type II certification, such as Formsort, ensures that the highest security standards are met for transmitting PHI.

Tracking and third parties: Healthcare websites often use third-party tracking codes, such as Google Analytics or Facebook marketing pixels, to collect data about user behavior. These trackers can inadvertently collect PHI by linking users’ IP addresses to health-related pages they visit. This data is subject to HIPAA but it’s often overlooked. It’s important for healthcare organizations to be aware that using tracking codes could expose PHI to third parties, which requires careful management of compliance. 

Data storage, access, and disposal

Once collected, PHI must be stored, accessed, and disposed of in a secure manner. This is where tools differ significantly, especially in terms of long-term data retention and accessibility policies:

Access controls: Specific measures like user authentication mechanisms and role-based access permissions must be implemented to ensure that only authorized personnel can handle PHI that comes through your forms.

Audit trails: HIPAA mandates the use of audit trails to track who accessed PHI. These logs have to provide a detailed record of all interactions with sensitive data, including the identity of the user, the time and date of access, and the specific actions taken. 

Data retention and disposal: Organizations need to securely store PHI for a required period and ensure that outdated data is disposed of irretrievably. Understanding your form builder’s retention and disposal policies is crucial.

Unlike many form builders, Formsort does not store data long-term. Instead, it allows you to securely send PHI directly to your existing HIPAA-compliant systems, such as an electronic health record (EHR) system. 

Transparency and oversight

Patient consent and access: HIPAA requires forms to include clear mechanisms for obtaining patient consent and explaining how their data will be used. This fosters transparency and trust with patients.

Regular compliance audits: To maintain compliance, regular audits of your form workflows are necessary. These audits help identify any potential vulnerabilities and ensure continuous improvement in security practices.

Are all form builders HIPAA-compliant?

Not all form builders are HIPAA-compliant. Many platforms offer general data collection features but do not meet the specific security and privacy standards required by HIPAA for handling PHI.

Some form builders have a paid tier that provides HIPAA compliance. You’ll need to verify that the platform you’re considering offers the HIPAA-compliant feature and that it adheres to all HIPAA regulations. 

You can read more about top HIPAA-compliant form builders in our article 7 best HIPAA-compliant form builders for patient intake.

Your HIPAA-compliant form builder must agree to sign a Business Associate Agreement (BAA) with you. This legal document outlines the responsibilities of both parties regarding the protection of PHI and is crucial for compliance.

In addition to HIPAA compliance, you might also need to consider the other features a form builder offers, such as branching logic, design customization, and ease-of-use.

How non-compliant forms can hurt your business 

As a startup, you might have a lot on your plate, and it’s understandable if ensuring that your form builder is HIPAA-compliant isn’t at the top of your priority list. You may think, “I can worry about compliance later.” However, this misstep can lead to significant pitfalls down the road. If PHI is compromised, the potential risks include: 

Fines and legal costs: Failing to comply with HIPAA regulations can result in hefty fines imposed by the Department of Health and Human Services (HHS). Legal costs can also escalate quickly if patients or entities take legal action due to data breaches or privacy violations.

Fines and legal costs

Failing to comply with HIPAA regulations can result in significant financial consequences, including hefty fines imposed by the Department of Health and Human Services (HHS). Data breaches, lawsuits filed by patients, anonymous complaints, and audits can all trigger legal actions and result in penalties.

According to the HHS Office for Civil Rights, as of 2023, the average fine for a HIPAA violation can range from $100 to $50,000 per violation, depending on the severity and nature of the breach. The total fines imposed by HHS for HIPAA violations reached over $121 million between 2018 and 2023. A study by the Ponemon Institute revealed that the average cost of a data breach in the healthcare sector was $4.35 million in 2022, which includes legal costs, notification expenses, and lost business. 

For instance, Anthem Inc., a major health insurance company, experienced a massive data breach in 2015 that compromised the personal information of approximately 78.8 million patients, including Social Security numbers and other sensitive data. The company agreed to a $39 million settlement in 2017 to resolve claims arising from the breach (source). 

Gums Dental Care was fined $70,000 for not making patient records available to the patient upon request. Providence Medical Institute was fined $240,000 for not adequately securing electronically stored PHI that was exposed in a hacking incident (source).

Operational challenges and expensive cleanup processes 

Organizations may need to invest significant time and resources in addressing security breaches, implementing corrective measures, and training staff to prevent future issues. This cleanup process can be both time-consuming and expensive.

The Ponemon Institute found that over 60% of companies struggling to recover from data breaches reported significant disruptions to patient care, including delayed tests and poor patient outcomes. 

Loss of patient trust and confidence

Most importantly, compromised data can severely damage a healthcare company’s reputation. Patients who learn their information is not secure lose trust, leading to decreased patient retention and a negative impact on new patient acquisition. Businesses often cannot recover from such reputational harm, resulting in long-term financial consequences and diminished service quality. 

How Formsort can help you create HIPAA-compliant forms with advanced logic and design customization 

Formsort is a perfect solution for healthcare businesses, offering a powerful yet user-friendly platform designed to help you streamline patient data collection while ensuring HIPAA compliance. You can qualify and prioritize leads for optimal care by tailoring patient journeys through dynamic forms that adapt to individual responses using conditional logic. Real-time calculations allow you to display essential information like pharmacy locations and drug prices instantly, making patient assessments more efficient and informative. Read more about how you can use repeating questions in medical history forms to streamline data collection.

Formsort also prioritizes your brand’s identity with fully customizable designs, enabling you to create professional, on-brand forms that can be seamlessly embedded on your website. Plus, with data save functionality, responders can easily return and complete their forms without losing progress, improving user convenience and completion rates. HIPAA-compliant healthcare templates are a great way to quickly create forms that you can build on or customize to fit your specific needs.

Security is at the heart of Formsort, which is both HIPAA-compliant and SOC II Type 2 certified. Data is secure throughout the collection and transmission process, and unlike many other platforms, it doesn’t store data long-term—minimizing the risk of data breaches. With seamless integrations for secure transmission of sensitive information, Formsort allows you to maintain complete control over your responders' data, putting privacy and compliance first.

Build secure forms with Formsort

As a digital healthcare startup, you need to find a HIPAA-compliant form builder so you can securely collect and manage patient data. Other important features you need are conditional logic, real-time calculations, customizable designs, and seamless integrations. 

Going above and beyond to ensure security and give you full design control, Formsort is an ideal solution for creating your dynamic, secure healthcare forms. Get started here.