During 2011, informal indications were given by the HHS Office of Civil Rights (OCR) and various industry experts that the final HITECH Act regulations amending the HIPAA privacy and security regulations would be published by the end of 2011. However, as of January 6, 2012, the regulations continue to be delayed, due to the numerous comments and policy questions being reviewed and addressed by OCR and other Health Information Privacy officials within HHS. Reasons for the lengthy time period for the HITECH Act regulations include the numerous policy reviews conducted by HHS, and the need to formulate responses to many of the over 300 comments received in connection with the Proposed Rule published in the Federal Register on July 14, 2010 (75 Fed. Reg. 40868). Although no specific month or day has been announced for publication of the final HITECH Act regulations in 2012, healthcare providers, health plans and clearinghouses should be prepared for publication of the final regulations sometime this year, and expect a few weeks or months of delayed enforcement to enable subject entities to transition to any new requirements.

Additionally, policy reviews are still being conducted by HHS OCR with respect to the Interim Final Rule for breach notification under the HITECH Act, which is found at 45 C.F.R. part 164, subpart D. It is not clear whether the breach notification regulations will remain unchanged, or whether revisions will be announced along with the HITECH Act final regulations.

Despite the continued delay in the final HITECH Act regulations, covered entities and business associates that are reviewing, implementing and updating their HIPAA privacy and security policies and procedures should continue to do so with diligence. The HIPAA regulations require periodic evaluation and updating of policies and safeguards, to address a changing healthcare environment and evolving privacy and security threats. Further, OCR is currently in the process of conducting HIPAA privacy and security audits of covered entities, as required under HITECH Act, notification of which began in November 2011. Covered entities should keep in mind that the HIPAA Security Standards took effect for most covered entities in April of 2005. For business associates, under the HITECH Act, the HIPAA Security Standards became directly applicable to them in February 2010. Similarly, the HITECH breach notification interim final rule, referred to above, became actively enforced in February 2010. Covered entities and business associates should consider finalizing any updates to their privacy and security policies, procedures, safeguards and documentation, and revisit these later in the year for any adjustments needed when the final HITECH Act regulations are published.

Photo of John Mulhollan John Mulhollan

John Mulhollan has actively served a variety of business and healthcare clients in Ohio and California, with a particular emphasis on the healthcare industry, for nearly ten years.

Mr. Mulhollan has experience counseling clients in a variety of substantive areas, including healthcare transactions…

John Mulhollan has actively served a variety of business and healthcare clients in Ohio and California, with a particular emphasis on the healthcare industry, for nearly ten years.

Mr. Mulhollan has experience counseling clients in a variety of substantive areas, including healthcare transactions and contractual negotiations involving Medicare and Medicaid fraud and abuse compliance, physician referral compliance under the Stark law and professional and facility licensing. He has assisted both nonprofit and for-profit clients with legal analysis and documentation of healthcare private offerings, joint venture agreements, leases and corporate governance matters in connection with complex transactions. Focused on providing sound, yet practical, advice, Mr. Mulhollan strives to understand and promote each client’s healthcare mission by providing legally compliant solutions to the challenges of today’s complex healthcare environment.

Mr. Mulhollan has represented large and small healthcare providers such as healthcare systems, individual hospitals and clinics, as well as physicians and ancillary healthcare businesses. The complex transactions he has handled range from single contractual services arrangements to large healthcare mergers and acquisitions. Examples include the acquisition of a county-owned community hospital by a nonprofit health system, shareholder relations and combinations with respect to private physician practices, and compliance and documentation support for a variety of healthcare ventures involving ambulatory surgery, diagnostic imaging and laboratory services. In addition to providing thorough legal analysis of business issues, Mr. Mulhollan is able to guide clients through complex issues ranging from Medicare/Medicaid certification, change of ownership and reimbursement implications of such transactions to detailed analysis and preparation of professional and vendor services agreements. He also provides guidance and support in the areas of operational restructuring of provider, supplier and medical group operations, including the expansion or contraction of services, outsourcing, marketing and development compliance and complex facility and vendor relationships.

Mr. Mulhollan has advised clients on a variety of organizational compliance efforts, including fraud and abuse and Stark law compliance and corporate policy development. He advises clients on physician professional services and on-call arrangements, medical director agreements, physician recruitment, graduate medical education and medical office leasing. Mr. Mulhollan has advised both healthcare and business clients on implementing the many requirements and compliance issues arising under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), as well as compliance with state medical privacy and professional licensing laws.

In addition, Mr. Mulhollan’s business practice includes general business advice to healthcare and non-healthcare clients, including mergers and acquisitions, governance, shareholder transactions, professional entity formation and compliance with government regulations.

Mr. Mulhollan is a member of the American, Ohio and Cleveland Metropolitan (Health Law Section) Bar Associations, as well as the American Health Lawyers Association.