The HITECH Act, short for Health Information Technology for Economic and Clinical Health Act, is a comprehensive healthcare legislation passed by the U.S. government in 2009. Its primary goal is to promote the adoption and meaningful use of electronic health records (EHRs) by healthcare providers in the country and improve the privacy and security of personal health information. It is an extension of HIPAA or Health Insurance Portability and Accountability Act, which was enacted in 1996. HITECH has a significant impact on the healthcare industry, especially when it comes to the privacy and security of electronic health information. In this article, we will discuss everything you need to know about HITECH and its implications for healthcare providers.

HITECH Act Compliance: A Step-by-Step Guide for Healthcare Providers

What Is HITECH and Why Was It Enacted?

The HITECH Act is a part of the American Recovery and Reinvestment Act (ARRA) of 2009, which was signed into law by President Obama to stimulate economic growth and create jobs in the aftermath of the Great Recession. HITECH was enacted to address the need for better security and privacy of electronic health records, as well as to address the lack of standards for interoperability of electronic health records.

The HITECH Act aims to achieve the following objectives:

  • Promote the adoption and use of EHRs by healthcare providers to improve the quality and efficiency of patient care
  • Enhance the privacy and security of electronic health information through the establishment of new regulations and standards
  • Encourage research and development in the field of health information technology (HIT)

The HITECH Act provides financial incentives to healthcare providers that demonstrate “meaningful use” of EHRs, which is defined as the use of EHRs to achieve specific objectives related to quality, safety, and efficiency of healthcare. It also imposes penalties on providers who fail to adopt and use EHRs by a certain deadline.

What Are the Key Provisions of HITECH?

HITECH has several key provisions that impact healthcare providers and organizations. These provisions include:

Meaningful Use of EHRs

One of the key features of the HITECH Act was the Meaningful Use program, which provided financial incentives for eligible providers who demonstrated meaningful use of certified EHR technology. The program had three stages, each with increasingly stringent requirements for meaningful use. Providers failing to meet the requirements face penalties in the form of reduced Medicare reimbursements.

Privacy and Security Requirements

HITECH is an important law that seeks to improve healthcare quality and efficiency while also protecting patient privacy and information. Its security requirements provide an important framework for healthcare organizations to protect Protected Health Information) (PHI) from unauthorized access.

HITECH requires healthcare organizations to implement safeguards to secure PHI to protect patients’ privacy. This requires healthcare organizations to: implement technical and non-technical security measures, such as encryption and access control; train employees on privacy and security protocols; and limit access to PHI to only those individuals who need it.

The law also requires healthcare organizations to ensure that they have measures in place to detect, respond to, and report on any potential privacy and security breaches. This means that healthcare organizations must have policies and procedures in place to respond to and investigate any potential breaches and to notify affected individuals.

HITECH also requires healthcare organizations to have processes in place for regularly assessing the effectiveness of their security measures and for making any necessary updates. This includes both technical and non-technical measures, such as regularly updating passwords, training staff, and reviewing access logs.

Finally, HITECH requires healthcare organizations to have a process in place for securely disposing of PHI when it is no longer needed. This requires organizations to have measures in place to ensure that PHI is securely destroyed, such as shredding documents or using secure data deletion software.

Breach Notification Requirements

One of the most important provisions of the HITECH Act is the Breach Notification Rule, which requires covered entities to provide notification to affected individuals, the Department of Health and Human Services (HHS), and in certain cases, the media when there has been a breach of unsecured PHI.

The Breach Notification Rule applies to any individual or organization that creates, receives, maintains, or transmits PHI. Covered entities must provide notification to any individuals whose unsecured PHI has been or is reasonably believed to have been accessed or acquired. Notification must be provided without reasonable delay, but no later than 60 days following the breach.

Organizations must also provide U.S. Health and Human Services (HHS) with an immediate notification of any breach involving more than 500 individuals, and provide a detailed description of the breach within 60 days of the incident. Additionally, organizations must provide notification to the media when there is a breach involving more than 500 individuals located in the same state or jurisdiction.

If a breach involves 500 or fewer individuals, notification to the media may be required if the HHS determines it is necessary and appropriate. The HHS is also responsible for determining if a breach requires notification to a credit reporting agency. The Breach Notification Rule also outlines certain requirements for the content of notifications, including a brief description of the incident, what PHI was involved, the steps individuals should take in response to the breach, and the organization’s contact information.

The HITECH Act includes significant penalties for failure to comply with the Breach Notification Rule. Organizations in violation are subject to civil money penalties of up to $50,000 per violation.

Health Information Exchange

The HITECH Act also included provisions for health information exchange (HIE), which allows for the secure sharing of patient health information between providers and healthcare organizations. It enables healthcare providers to securely exchange patient health information with other approved providers.

This exchange of information is encrypted and is done to improve healthcare quality, reduce costs, and improve the patient experience when seeing multiple providers. HIE is also used to provide real-time access to patient records, so that providers can better coordinate care and reduce errors.

HIE also creates a platform for healthcare providers to share best practices and evidence-based guidelines. Providers can also access aggregate data to improve population health initiatives. HIE is used to provide patient portals, which give patients the ability to access their health records.

Penalties for Noncompliance With HITECH

The penalties for noncompliance with the Health Information Technology for Economic and Clinical Health (HITECH) Act can be quite severe. The U.S. Department of Health and Human Services (HHS) Office for Civil Rights (OCR) can impose civil money penalties up to $1.5 million per violation, as well as criminal penalties for violations that involve the wrongful disclosure of individually identifiable health information (IIHI).

Furthermore, noncompliance with HIPAA and HITECH can lead to public disclosure of the provider’s violation, administrative reprimands, and termination of Medicare and Medicaid billing privileges. Organizations and individuals who fail to comply with the rules can also face civil and criminal lawsuits, heavy fines, and imprisonment. HITECH compliance is a necessity for any organization that seeks to protect its patients’ health information and comply with all relevant regulations.

How Does HITECH Impact Healthcare Providers and Organizations?

The HITECH Act has had a profound impact on the healthcare industry since its enactment. It has led to a significant increase in the adoption and use of EHRs by healthcare providers, with more than 80% of hospitals and 50% of physician practices in the U.S. now using EHRs. This results in several benefits, including:

  • Improved patient safety and quality of care through better access to patient information and decision support tools
  • Increased efficiency and productivity of healthcare providers through the automation of routine tasks and workflows
  • Cost savings through reduced administrative expenses and medical errors

The HITECH Act also paved the way for the development of new HIT products and services, such as telehealth and mobile health applications, that enable patients to access healthcare services remotely and more conveniently.

How Does HITECH Impact Patients?

HITECH has a significant impact on patients as well. Patients have the right to access and control their electronic health information under HITECH. Patients can also request an accounting of disclosures of their electronic health information and file a complaint if they believe their rights have been violated.

How Does HITECH Impact Healthcare Technology Vendors?

HITECH also impacts healthcare technology vendors. Healthcare technology vendors must comply with the certification requirements of HITECH to ensure that their technology meets certain standards for interoperability and security.

Challenges in the Implementation of HITECH

Even though there have been numerous benefits of this Act, there have also been challenges and criticisms, such as the high costs and complexity of implementing and using EHRs and concerns about the potential for data breaches and privacy violations.

Another challenge of the HITECH Act has been the digital divide, where healthcare providers in underserved and rural areas have struggled to adopt and implement EHRs due to limited resources and access to technology. To address this, the HITECH Act established grant programs to support the adoption of EHRs by these providers.

What Are the Differences Between HIPAA and HITECH?

HIPAA (Health Insurance Portability and Accountability Act) and HITECH are both U.S. federal laws that govern the privacy and security of patient health information. However, there are some key differences between the two:


HIPAA covers all protected health information (PHI), while HITECH extends the HIPAA privacy and security provisions to electronic health records (EHRs).


HIPAA is enforced by the Department of Health and Human Services’ (HHS) Office for Civil Rights (OCR), while HITECH expands OCR’s authority to impose penalties for HIPAA violations.


HIPAA violations can result in civil and criminal penalties, but HITECH increased the penalties for HIPAA violations. The maximum penalty for a single violation is now $1.5 million.

Breach Notifications

HIPAA requires covered entities to notify patients and HHS in the event of a breach of unsecured PHI affecting more than 500 individuals. HITECH expands the notification requirements to include notifying the media if the breach affects more than 500 individuals.

Business Associates

HIPAA requires covered entities to enter into business associate agreements (BAAs) with their vendors that handle PHI. HITECH extends the same HIPAA privacy and security requirements to business associates themselves, and imposes penalties for violations. HITECH builds upon HIPAA by strengthening the privacy and security protections for electronic health records, increasing penalties for violations, and expanding the scope of enforcement to include business associates.

Future of the HITECH Act

The HITECH Act continues to evolve and adapt to the changing needs of the healthcare industry. In 2020, the U.S. government introduced the 21st Century Cures Act, which builds upon the HITECH Act and aims to promote innovation in HIT and improve patient access to healthcare services. The 21st Century Cures Act provides additional funding for HIT research and development and includes provisions for interoperability and patient access to health information.

Looking to the future, the HITECH Act has set the stage for further advancements in health IT, such as the use of artificial intelligence (AI), telemedicine, and other innovative technologies. These new technologies have the potential to further improve patient care, increase efficiency, and reduce costs.

However, as with any new technology, there are also concerns about the potential risks and challenges of adopting and using these tools. It will be important for healthcare providers, policymakers, and patients to work together to address these challenges and ensure that the benefits of health IT are realized while also minimizing the potential risks.

Navigating HITECH Compliance in 2023 With KIteworks

In order to remain compliant with HITECH and HIPAA regulations, entities must ensure that all protected health information (PHI) is securely stored and handled. Additionally, any PHI must be encrypted both in transit and at rest, as well as being regularly monitored for any unauthorized access. Entities must also make sure that all PHI is accessed only by authorized personnel, that access logs are kept, and that any access rights are revoked upon employee termination.

Further, entities must have a risk assessment process in place that is regularly updated, and must also provide ongoing employee training and education on HITECH and HIPAA compliance. Finally, entities must be prepared to respond in the event of a data breach and have a well-thought-out incident response plan in place. By taking these steps, entities can effectively navigate HITECH compliance in 2023.

Organizations that rely on the Kiteworks Private Content Network (PCN) are able to demonstrate compliance with data privacy regulations like HITECH. Kiteworks unifies, tracks, controls, and secures sensitive content communications—including email, file sharing, managed file transfer, web forms, and application programming interfaces (APIs)—in one platform that makes it easy to generate reports with comprehensive audit trails showing who accessed content, edited it, shared and sent it, to whom it was sent, where it was sent, and to what devices it was shared. Further, Kiteworks is the only sensitive content communications platform with 100% on-premises deployment for single-tenancy cloud and complies with nearly 90% of Cybersecurity Maturity Model Certification (CMMC) 2.0 Level 2 practice controls.

Schedule a custom demo of Kiteworks to learn more about how it can help you demonstrate compliance with HITECH and other data privacy regulations.

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