Health Information Management

Pharmacists in CA worry new credentialing program violates HIPAA

HIPAA Weekly Advisor, March 14, 2005

Want to receive articles like this one in your inbox? Subscribe to HIPAA Weekly Advisor!

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."



Want to receive articles like this one in your inbox? Subscribe to HIPAA Weekly Advisor!

  • Briefings on APCs

    Worried about the complexities of the new rules under OPPS and APCs? Briefings on APCs helps you understand the new rules...

  • Medical Records Briefing

    Guiding Health Information Management professionals through the continuously changing field of medical records and toward a...

  • Briefings on Coding Compliance Strategies

    Submitting improper Medicare documentaion can lead to denial of fees, payback, fines, and increased diligence from payers...

  • Briefings on HIPAA

    How can you minimize the impact of HIPAA? Subscribe to Briefings on HIPAA, your health information management resource for...

  • APCs Weekly Monitor

    This HTML-based e-mail newsletter provides weekly tips and advice on the new ambulatory payment classifications regulations...

Most Popular

Related Articles