SOC 2 and HIPAA Compliance: What to Consider When Evaluating RCM Technology

As financial challenges continue to put pressure on healthcare companies, many practices are turning to RCM technology to help drive collections and streamline revenue cycle workflows. When evaluating a new vendor or technology to bring into your healthcare practice, its extremely important to ensure that the vendor prioritizes data privacy and values security in the same way your practice does. With the influx of new technology on the market, SOC 2 certifications and HIPAA compliance have become non-negotiables for any vendor building tech for healthcare. In this blog, we’ll dive into SOC 2 Type 2 certification and HIPAA compliance, what they mean, and why it’s so important for RCM technology to value these standards.

Understanding SOC 2 and HIPAA Certifications

SOC 2 Type 2 Certification: 

SOC 2, which stands for System and Organization Controls 2, is a “compliance framework used to evaluate and validate an organization’s information security practices,” according to Vanta.

This framework was established by the American Institute of Certified Public Accountants (AICPA) and standardizes the management of customer data across five “trust service criteria,” which include security, availability, processing integrity, confidentiality, and privacy. SOC 2 Type 2 is an audit framework which enables third party auditors to review a vendor's environment to ensure they are compliant.

For revenue cycle technology that processes patient claims data, this framework is particularly relevant.

HIPAA Compliance:

HIPAA, which stands for the Health Insurance Portability and Accountability Act (HIPAA), is a law designed to protect the privacy and security of medical records and protected health information (PHI). 

To be considered HIPAA compliant, your organization must adhere to specific regulations and standards that ensure confidentiality, integrity, and availability of protected health information (PHI).

As HIPAA centers around the safety of patient information, it’s no wonder that RCM tech vendors need to be particularly cognizant of their compliance.

Ensuring Data Security and Privacy

For healthtech companies, protecting patient data is extremely important. SOC 2 certifications and HIPAA compliance ensure that these companies are adhering to strict security measures and protecting patient information from unauthorized access. Failing to safeguard patient medical records can result in large-scale data breaches — like the 2019 American Medical Collection Agency breach, which affected 25 million patients. Data breaches are a serious reminder of the need for robust security to protect health information, financials, and the healthcare company’s reputation. 

Building Trust with Clients and Partners

If you’re a healthcare provider evaluating a potential tech vendor, there are most likely a few criteria you’re considering in your evaluation. Price, functionality, and integrations are important, but none of that matters if the technology does not meet privacy and security standards.

Checking if the vendor is SOC 2 Type 2 certified and HIPAA compliant is a great starting point to understand how the company values privacy and security requirements. These metrics for compliance are a strong indicator of a vendor’s credibility and trustworthiness — and how well they’ll protect the data of your practice and patients. 

Summary

As healthcare providers increasingly rely on RCM tech to automate and streamline their financial processes, the importance of a SOC 2 certification and HIPAA compliance cannot be overstated. These compliance frameworks provide a standardization for data security and privacy so that you can be confident in the safety of your patient data and PHI. 

By prioritizing vendors that adhere to SOC 2 and HIPAA standards, healthcare organizations can build trust with their clients and partners, protect against potential data breaches, and establish a reputation as a vendor who values compliance. 

Adonis is proud to be both HIPAA complaint and SOC 2 Type 2 compliant and certified.. We take great pride in our data privacy and security so that our clients can feel confident partnering with us.

To learn more about Adonis and our commitment to privacy and security, chat with a member of our team, here.