Pharmacists in CA worry new credentialing program violates HIPAA
HIPAA Weekly Advisor, March 14, 2005
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A new pharmacy credentialing program by CalOptima, a health management organization in California, has pharmacists concerned about violating their patients' privacy, reported the Associated Press (AP).
The new program, launched to cut drug costs and reduce fraud and abuse, requires 425 Orange County pharmacies to contract with the Fraud Prevention Institute (FPI). Officials from the institute will conduct 30-minute pharmacy audits to verify that the doctor whose name appears on a prescription actually authorized the prescription.
CalOptima CEO Richard Chambers assures the pharmacists that their worries about patient privacy are unfounded. "CalOptima wouldn't implement a program where private information would be compromised," he told the AP.
A contract between each pharmacy and FPI makes it legal for the pharmacies to disclose patient information, healthcare lawyer Mark Kadzielski told the AP. "If a business associate agreement is properly drafted to protect peoples' privacy, then there's no problem with FPI coming in and doing a review," he said. "If they breach confidentiality, then FPI is subject to criminal penalty and civil fines."
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