The Health Insurance Portability and Accountability Act (HIPAA) will pose a considerable financial burden on healthcare providers, warns an international ratings agency.
An estimate by the U.S. government that HIPAA compliance will cost providers $5.8 billion is too conservative, according to a report compiled by Fitch Ratings of New York City. Instead, the Fitch report suggests that the expenditures will top $25 billion.
Providers who fail to budget properly for HIPAA implementation will place themselves at risk for financial peril, said Fitch analyst Rebecca Lageman.
Fitch released the report, "HIPAA: Wake-up Call for Health Care Providers," this week. The report states that in order to comply with the regulations, healthcare systems will most likely require a total overhaul, including retraining and hiring staff and purchasing new information technology equipment.
By AuntMinnie.com staff writers
September 20, 2000
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New HIPAA rules portend sweeping changes in medical data security, June 27, 2000
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