9/30/2013. What is Cloud Computing? Benefits of Cloud Computing

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1 The Continued Evolution of Mobile, Wireless and Cloud Technologies in the Healthcare Industry Health Care Compliance Association Regional Conference October 11, 2013 Pittsburgh, PA Michael A. Cassidy Copyright Tucker Arensberg, P.C. All Rights Reserved. Tucker Arensberg, P.C One PPG Place Pittsburgh, PA What is Cloud Computing? The dynamic provisioning of IT capabilities (hardware, software and services) from third parties over a network Accenture Provider interface Transmission (ISP) Storage (supersize data centers) End user 2 Benefits of Cloud Computing Enhanced access Necessity of sharing to improve quality Faster access Lower scalable costs Significantly reduced capital investments Mobility Security and privacy 3 1

2 Industry Facts 55% using cloud computing (2011) 73% intend to be using by 2013 $5.4 billion industry by 2017 No ISP with greater than 5% market share 4 Cloud Legal & Compliance Issues 1. Privacy 2. Security 3. Jurisdiction/Offshore Risks Recovery Enforcement Access 4. Data Ownership 5. Compliance Training Testing Auditing Essential Compliance Plan Elements 1. Standards and Procedures 2. Oversight 3. Education and Training 4. Monitoring and Auditing 5. Reporting 6. Enforcement and Discipline 7. Response and Prevention 6 2

3 Cloud Use: Offshore Contracting CMS s requirements help identify some of the regulatory and other legal concerns that Offshore Activities can raise. CMS requires that its regulated plans identify and report the following: All contractors and subcontractors that engage in Offshore Activities involving PHI; The type(s) of PHI provided to the offshore contractor; The functions that the contractor performs offshore that involve PHI; Whether Offshore Activities involving PHI are necessary, and whether alternatives to those Offshore Activities were considered; and The contracting arrangement s safeguards to protect PHI, and provisions for audits of the offshore contractors compliance with those safeguards. 7 Privacy Sources 1. 4 th Amendment 2. Hospital licensing regulation 3. Physician licensing regulations 4. HIPAA 8 HIPAA Refresher 1. Covered entities a) Providers b) Health Plans c) Clearinghouses d) Business Associates/Contractors 2. Basic Rule: Covered entities may not disclose Protected Health Information (PHI) individually identifiable data, except: a) Required disclosures b) Permitted uses and disclosures 3. Required: a) Individuals b) HHS 9 3

4 Permitted HIPAA Disclosures 1. Individual 2. Treatment, Payment and Operations (TPO) 3. Opportunity to Object 4. Incident to other permitted disclosures 5. Public Interest Activities 6. Limited Data Set 10 HIPAA Public Interest and Benefit Activities 1. Required by law 2. Public Health Activities 3. Abuse Victims 4. Health Oversight 5. Judicial and Administrative Proceedings 6. Law Enforcement 7. Decedents 8. Organ Donation 9. Research 10. Heath and Safety Threats 11. Essential Government Functions 12. Workers Compensation Compliance 11 Pennsylvania Hospital Privacy Regulation All records shall be treated as confidential. Only authorized personnel shall have access to the records. The written authorization of the patient shall be presented and then maintained in the original record as authority for release of medical information outside the hospital. 28 Pa Code (Copy Attached)

5 Pennsylvania Physician Privacy Regulation Pennsylvania Medical Board regulations define misconduct to include: (1) Revealing personally identifiable facts, obtained as a result of a practitioner-patient relationship, without the prior consent of the patient, except as authorized or required by statute. 49 Pa Code (Copy Attached) 13 Fourth Amendment The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated, and no warrants shall issue, but upon probable cause, supported by oath or affirmation, and particularly describing the place to be searched, and the persons or things to be seized Fourth Amendment Development Principles: Free from unreasonable searches and seizures Persons, houses, papers and effects Probable cause for warrants Exclusionary rule Smith v. Maryland (U.S. Supreme Ct. 1979) 2 prong test: Person has actual expectation of privacy Society has recognized that the expectation was reasonable

6 Fourth Amendment Exceptions Consent Plain view Motor vehicle Plain view Weapons (reasonably hidden) Foreign Surveillance Border Searches Exigent circumstances/great need Sobriety checkpoints Self Disclosure/3 rd Party Rule 16 Third Party Doctrine Self Disclosure to 3 rd Party Waiver/No Reasonable Expectation of Privacy Self Disclosure Trash Informants and in undercover officers Any voluntary witness Spouse Disclosure to machines (Smith v. Maryland) Telephone numbers Telephone operators 17 Third Party: Cloud: Social Network The basic problem stems from the fact that almost all communications over the Internet including messages over such sites as Facebook, Gmail, and Hotmail are stored for various lengths of time on third party servers or Internet service providers ( ISPs ). These are proprietary systems owned by the respective provider (e.g., Facebook, Gmail) that house the information so that it can be delivered to its destination. The question for scholars has been whether these communications continue to merit privacy protection, despite this disclosure to a third party

7 Facebook Privacy Policy The most pertinent part of Facebook s privacy policies relates to sharing information with government authorities. Facebook s policies state that it may: Access, preserve and share your information in response to a legal request (like a search warrant, court order or subpoena) if we have a good faith belief that the law requires us to do so. This may include responding to legal requests from jurisdictions outside of the United States where we have a good faith belief that the response is required by law in that jurisdiction, affects users in that jurisdiction, and is consistent with internationally recognized standards Apple License Agreement Apple s icloud requires its users to acknowledge and agree that Apple may [disclose] Account information and Content to law enforcement authorities, government officials, and/or a third party, as Apple believes is reasonably necessary or appropriate, if legally required to do so if [it has] a good faith belief that such access, use, disclosure, or preservation is reasonably necessary to comply with legal process or request ( Consent Without Boilerplate Issues ISP Transmission v. Storage First Class Mail Encrypted Mail to 3 rd Party to post Custodial Consent Facebook Apple Landlord

8 Privacy v. HIPAA Patients do not have 4 th Amendment style privacy rights in PHI. Third Party Doctrine HIPAA prohibits you from releasing voluntarily disclosed PHI Release to law enforcement without a search warrant Use of Mobile Devices Data access vs. diagnostic tool Enhanced privacy and security risks Loss or Theft HIPAA preamble to recent regulation updates (HIPAA Omnibus Rule) suggests patient explanation of risks 23 Government Initiatives Managing Mobile Devices in your Healthcare Organization 5 Steps: 1. Decide 2. Assess 3. Identify 4. Develop, Document and Implement 5. Train (See Attached)

9 Additional Resources FDA Safety Communication: Cyber Security for Medical Devices and Hospital Networks (June 13, 2013) htm Mobile Medical Applications: Guidance for Industry and Food and Drug Administration Staff (September 25, 2013) dguidance/guidancedocuments/ucm pdf

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