Skip to main content
Best Practices

The Role of Peer-to-Peer Encryption in the HIPAA Omnibus Era

It’s every compliance officer’s worst nightmare. You’re sitting at your desk on a weekday afternoon, perhaps catching up on the latest posts on the qliqSOFT blog, when all of a sudden your CIO calls you up and frantically explains how one of your vendors suffered a major data breach. Over thirty thousand patient records are lost, and there is no way to know what has been done with the data so far.

3 min read
role of peer to peer encryption in the hipaa omnibus era|peer-to-peer encryption in healthcare

It’s every compliance officer’s worst nightmare. You’re sitting at your desk on a weekday afternoon, perhaps catching up on the latest posts on the qliqSOFT blog, when all of a sudden your CIO calls you up and frantically explains how one of your vendors suffered a major data breach. Over thirty thousand patient records are lost, and there is no way to know what has been done with the data so far. Regrettably, all of it stemmed from an unfortunate but unavoidable human error: the vendor’s firewall was turned off by accident and was left so for over six weeks. If this sounds familiar, that’s because it is.

Healthcare Data Breach Incident Response

Following your incident response plan, you analyze the security incident and correctly determine that

 peer-to-peer encryption in healthcare

a data breach has indeed occurred. You begin preparations to notify each and every patient whose data was compromised. You even try to preempt future class action lawsuits by offering free credit monitoring services to the patients. All told, this event will be a costly one: at an average of $200/patient in notification and credit monitoring services, the total cost of the breach will balloon above $6 million. Luckily, your data breach insurance policy and BAA indemnification provisions will offset a lot of the cost to other parties. However, not even the most stringent contractual protections will prevent this story from slapping on the front page of the Wall Street Journal and the OCR “Wall of Shame.”

The above incident underscores one of the most concerning aspects of information security in the healthcare world – providers relying on their vendors to provide adequate security measures for systems containing PHI. And despite the due diligence and contractual safeguards providers can take to keep their patients’ data safe, the fact of the matter is that human error continues to be the biggest problem area to account for. Quite frankly, the more vendors you work with and thus the more parties you outsource your PHI to, the higher your odds of suffering a data breach through a human error on their behalf.

Peer-to-Peer Product Infrastructure

Thankfully, there are alternatives. One of the easiest methods of decreasing vendor risk is using the correct vendor product infrastructure. Many vendors provide valuable services to customers, but these vendors include the needless step of taking custody of PHI-containing files, often storing the data in the cloud. One workaround is to provide provider organizations with a peer-to-peer product infrastructure, enabling customers to allow their providers to exchange PHI with one another from device to device without having the data flow through the vendor’s central server.

Clear Benefits of Peer-to-Peer Encryption

The benefits of peer-to-peer connectivity are clear. Providers “cut out the middleman,” dramatically decreasing the chances that their patients’ information will be intercepted by a malicious party. Moreover, because the vendor doesn’t actually take custody of PHI in this scenario, no BAA is necessary. However, most important of all, compliance officers will have one less vendor and their opaque security controls to worry about. That’s potentially one less weekday urgent phone call on your mind.

Frequently Asked Questions

Find answers to common questions about this topic.

Peer-to-peer encryption allows healthcare providers to exchange PHI directly from device to device without data flowing through a vendor's central server. This eliminates the vendor as a middleman and reduces the risk of data breaches by keeping PHI out of third-party storage systems.

No, a BAA is not necessary when using true peer-to-peer encryption because the vendor doesn't actually take custody of PHI. Since the data flows directly between healthcare providers' devices, the vendor is not handling protected health information.

Healthcare data breaches cost approximately $200 per patient on average, including notification and credit monitoring services. For large breaches involving tens of thousands of records, total costs can easily exceed $6 million.

Working with multiple vendors increases your exposure to human error-related data breaches, as each vendor represents a potential point of failure. The more parties that have access to or custody of PHI, the higher the statistical likelihood of experiencing a security incident.

Peer-to-peer encryption eliminates the need to monitor and assess vendor security controls since PHI doesn't pass through their systems. This reduces the number of third-party relationships compliance officers must oversee and potentially prevents those urgent breach notification calls.

Krishna Kurapati

Written by

Krishna Kurapati

Founder & CEO

Founder & CEO of QliqSOFT with 20+ years of healthcare technology experience.

View all posts

Related Articles

hipaa omnibus changes|hipaa omnibus changes for healthcare security
Best Practices

HIPAA Omnibus Changes – Just One Week Left

One week. That’s all that remains between now and September 23rd, the date at which the HIPAA Omnibus regulations go into effect. Covered entities under the law should have already completed most of the long-term compliance work under regulations – e.g., updating their Business Associate Agreements, revising their Notices of Privacy. Practices, completing a detailed risk assessment – but the biggest change that goes into effect in seven days is the shift in a presumption in what constitutes a breach.

Krishna KurapatiKrishna Kurapati
2 min read
hipaa hitech breaches in healthcare|
Best Practices

Breaches and the HIPAA/HITECH Omnibus Deadline

90 days. That’s all the time healthcare organizations have between now and the September 23 HIPAA Omnibus compliance date. Understandably, most healthcare compliance officers are focusing on the significant changes spelled out in the regulations: obtaining business associate agreements, updating notices of privacy practices, and training staff members on the changes to the law.

Krishna KurapatiKrishna Kurapati
2 min read
3m left