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Guide to HIPAA Covered Entities: Who Must Follow HIPAA Rules?
Updated Jul 25th, 2025 - 5 min read
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Table of Contents
What are HIPAA Covered Entities? HIPAA Covered Entity Definition What are Covered Entities Under HIPAA All Covered Entities Designate Compliance Processes Why Covered Entities Need HIPAA Compliant Communication Solutions Secure Fax and SMS for HIPAA Covered Entities Why Covered Entities Choose Notifyre Are Police Covered Entities Under HIPAA? Compliant Communication Solution
What are HIPAA Covered Entities?
In the healthcare industry, protecting patient data isn’t just a best practice, it’s a legal requirement. The Health Insurance Portability and Accountability Act (HIPAA) outlines strict standards for how protected health information (PHI) must be handled. These requirements apply directly to a category of organizations known as HIPAA covered entities.
But what is a covered entity under HIPAA, and why does it matter when selecting a provider for communication? In this article, we’ll explain who covered entities are, what HIPAA expects of them, and why choosing HIPAA compliant fax and SMS solutions like Notifyre is essential for compliance and security.
HIPAA Covered Entity Definition
Under HIPAA, a covered entity is defined as any organization that handles Protected Health Information (PHI) as part of its core operations. Covered entities are directly responsible for complying with HIPAA Privacy, Security, and Breach Notification Rules.
What are Covered Entities Under HIPAA
1. Healthcare Providers
This includes doctors, dentists, clinics, hospitals, psychologists, chiropractors, and pharmacies. It covers any provider who sends health information electronically for standard transactions, claims, and eligibility inquiries.
2. Health Plans
Organizations such as:
Health insurance companies
Health Maintenance Organizations (HMOs)
Medicare and Medicaid
Employer-sponsored group health plans
These entities provide or pay for the cost of medical care.
3. Healthcare Clearinghouses
Entities that process nonstandard health information they receive from another entity into a standard format, or vice versa.
Example: Converting a paper-based claim into an electronic version for submission.
4. Business Associates
Business associates are not covered entities themselves but provide services to or perform functions on behalf of a covered entity that involve access to Protected Health Information (PHI).
Common examples include:
Billing companies
IT providers
Cloud storage services
Online fax and communication platforms like Notifyre, which facilitate the secure transmission of PHI on behalf of healthcare providers.
HIPAA requires business associates to sign Business Associate Agreements (BAAs) with covered entities, agreeing to safeguard PHI according to HIPAA standards.
If you fall under any of these categories, your organization is considered a HIPAA covered entity and must take all necessary precautions to secure PHI.
HIPAA Requires That All Covered Entities Designate Compliance Processes
HIPAA requires all covered entities to have a privacy officer. They must also put in place technical and administrative safeguards. Additionally, they should only work with software providers that follow HIPAA rules.
This means using communication tools that:
Use encryption
Offer secure data storage
Provide access controls and audit trails
Support Business Associate Agreements (BAAs)
Are compliant with HIPAA’s technical safeguards
Failure to do so can result in severe fines, data breaches, and reputational damage.
Why Covered Entities Need HIPAA Compliant Communication Solutions
Day-to-day operations in healthcare rely on communication. Providers must use a HIPAA compliant fax solution and a HIPAA compliant texting app. This is important when sending patient records by fax or delivering appointment reminders via SMS. These messages may contain PHI and must follow HIPAA rules.
Common Communication Use Cases:
Faxing referrals or test results
Sending care coordination updates
SMS appointment reminders or follow-ups
Communicating with patients about prescriptions or billing
What entities are covered under HIPAA should ask: Is the software I use capable of protecting PHI? If not, it's time to switch to a compliant provider.
Secure Fax and SMS for HIPAA Covered Entities
Notifyre offers HIPAA compliant fax and SMS solutions built for healthcare providers and organizations. With encryption, two-factor authentication, and secure data handling, Notifyre ensures that your messages are transmitted safely and meet all regulatory requirements.
Why Covered Entities Choose Notifyre:
Secure Online Faxing: Send and receive faxes online, no fax machine required.
HIPAA Compliant SMS Messaging: Safely text patients with appointment updates or service notifications. Before doing this, you need a HIPAA text messaging consent form.
Business Associate Agreements (BAAs): Available for all Notifyre account to for compliance.
ISO 27001 Certification: Aligns with international security standards.
Real-Time Message Tracking: Monitor every message and fax from send to delivery.
Are Police Covered Entities Under HIPAA?
Police and law enforcement agencies are generally not considered HIPAA covered entities. While they may encounter protected health information (PHI) during investigations, they are not subject to HIPAA regulations unless they operate healthcare components that provide healthcare services and electronically transmit health information.
HIPAA Covered Entities Need a Secure and Compliant Communication Solution Like Notifyre
If you are a healthcare provider, insurer, or clearinghouse, you have strict responsibilities as a HIPAA covered entity. Choosing non-compliant communication tools is a major risk to patient privacy and your organization’s legal standing.
Notifyre’s HIPAA compliant fax and SMS platform provides a secure, reliable way to protect sensitive data while improving how you communicate with patients and partners.
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