Seek Privacy in the Health-Care Market
The prognosis for increasing profits is good due to regulation reinforcement.
The hot topic on the table for health-care right now in terms of business forms products is privacy. That's because on April 14, those within the medical industry are expected to adopt one of the last remaining compliances in accordance with the Health Insurance Portability and Accountability Act (HIPAA)—a law mandating regulations that govern privacy, security and electronic transactions standards for health-care information.
For distributors either seeking entry into this market or additional sales within it, this upcoming deadline swings the door of sales opportunity wide open.
According to Jim Magdaleno, account manager for TFP Data Systems, Oxnard, Calif., many large institutions (such as hospitals) and small practices (such as medical offices and dental facilities) will be filling up on products and services that comply with this regulation out of respect for their patients and will need to rely on distributors to provide them.
"This movement is meant to protect the individual rights of patients in treatment, in obtaining payment and improving quality care," said Magdaleno. "And, even though the HIPAA ruling has been in motion for several years, the medical community is doing everything it needs to do in order to catch up now. That means for the next 12 to 18 months, distributors can jump in, develop or strengthen relationships with new and current clients and look forward to ongoing business with them."
Magdaleno explained that before this ruling, patients' information could be utilized in many ways, such as within marketing materials for hospital research. "However, with new confidentiality standards, the patient must be informed of how health information with be disclosed, which leads to the creation of new products," he said. "For instance, this type of information will take the form of hard-copy contracts and security notices, which must include patients' written acknowledgement of receipt of the notice."