VestaConnect and Data Privacy
VestaTech and Data Privacy
Given the increasing everyday reliance on digital platforms, data privacy and protection are more important than ever, especially in the healthcare industry, where personal health information (PHI) is collected, processed, and stored. Two key regulatory frameworks - HIPAA (Health Insurance Portability and Accountability Act) and GDPR (General Data Protection Regulation) - are at the forefront of safeguarding sensitive health data. For companies like VestaTech, understanding and complying with these regulations is essential for protecting customer privacy and maintaining trust in the security of our solutions.
While HIPAA and GDPR play vital roles in safeguarding consumers’ most sensitive data, most people are not necessarily familiar with these frameworks. VestaTech believes that all consumers benefit from being informed about these matters, so we will attempt to offer a very brief overview to help our customers better understand the protections afforded to them.
Let’s start with HIPAA. HIPAA is a U.S. federal law enacted in 1996 that establishes national standards for the protection of health information. Its primary purpose is to ensure the privacy and security of PHI while allowing the flow of health information necessary to provide high-quality care. HIPAA applies to "covered entities," such as healthcare providers, health plans, and clearinghouses, as well as "business associates,” which are third parties that handle PHI on behalf of covered entities, which includes many healthcare SaaS companies like VestaTech.
HIPAA is governed by two key rules: the Privacy Rule, which regulates the use and disclosure of PHI; and the Security Rule, which sets technical, administrative, and physical safeguarding standards to ensure that electronic PHI (ePHI) is protected against breaches, unauthorized access, and cyberattacks.
Healthcare organizations and any companies dealing with PHI must adhere to HIPAA regulations to avoid severe financial penalties, ranging from $100 to $50,000 per violation, depending on the degree of negligence. Beyond the risk of penalties, non-compliance can severely damage an organization’s reputation, eroding trust with customers and partners. Our customers entrust VestaTech with their most sensitive information, so we understand just how vital it is that we take all necessary steps to protect it.
Turning to GDPR, this comprehensive data protection regulation came into effect in May 2018 in the European Union (EU) and is designed to give individuals greater control over their personal data. It applies to any company that collects or processes the personal data of EU residents, regardless of where the company is located. As VestaTech is a global company with truly global ambitions, GDPR-compliance is considered a foundational requirement for all of our solutions.
When it comes to healthcare specifically, GDPR applies to all organizations that handle sensitive patient data, including healthcare providers, researchers, insurers, and SaaS companies. GDPR is notably broader than HIPAA in its scope of protecting "personal data," which not only includes health information but also any data that could be used to identify an individual person: name, email address, or even an IP address associated with one of their devices such as a smartphone or laptop.
GDPR has a number of key principles, which include, but are not limited to:
Data minimization: only collecting the data that is absolutely necessary;
Data subject rights: individuals should have control over their data, including the right to access, to correct, or even to have their data deleted if they so choose;
Consent: the idea that consent of the use of data must be freely given, specific to the use in question, informed, and completely unambiguous; and
Security and breach notification: similar to HIPAA, GDPR not only requires the implementation of strong security controls to proactively protect data, but also compels organizations to report any breaches within 72 hours of discovery.
GDPR's strict requirements mean that healthcare organizations, including SaaS companies like VestaTech that provide services in the healthcare sector, need to take significant steps to ensure compliance. Fines for non-compliance can be severe, up to €20 million or 4% of a company’s global annual revenue, whichever is higher.
While there are some differences when it comes to the specifics of HIPAA and GDPR, the two frameworks share the common goals of protecting individuals’ privacy, ensuring data security, and solidifying trust. These goals are core to VestaTech and, as such, we maintain compliance with both frameworks, and have layered on additional controls that are not yet required by either to ensure that the sensitive data entrusted to us by our customers remains safe and secure.
