It's a common misconception that HIPAA fines only apply to big hospitals or major health systems. The truth is, many enforcement actions from the Office for Civil Rights (OCR) involve small-to-medium-sized practices—and the fines can be devastating.
Here are five of the most common reasons small practices get hit with HIPAA fines and what you can do to avoid them.
1. Not Having a HIPAA Security Officer
The problem: Every covered entity must designate a Security Officer responsible for developing and implementing security policies. Many small clinics don't assign this role, leaving a critical gap.
How to avoid it: Officially designate a Security Officer (this can be the practice owner or office manager). Our HIPAA Startup Kit includes a ready-to-use policy template.
2. Lack of a Formal Risk Analysis
The problem: A comprehensive risk analysis is required to identify vulnerabilities to ePHI. Failing to do so is a frequent and costly violation.
How to avoid it: Conduct a formal risk analysis at least annually or when your IT environment changes. Start with the checklist in our kit.
3. Failure to Implement Physical Safeguards
The problem: Not all PHI is digital — unsecured charts or open server rooms are common violations.
How to avoid it: Lock paper PHI, restrict access to equipment rooms, and train staff on end-of-day clear desk procedures.
4. No Business Associate Agreements (BAAs)
The problem: Every vendor touching PHI requires a signed BAA. Without one, you're on the hook for their mistakes.
How to avoid it: Identify PHI vendors and get BAAs signed. Use the tracking sheet from our kit.
5. Not Having a Breach Notification Policy
The problem: Breaches carry strict notification deadlines to patients and HHS. Without a plan, you'll miss them.
How to avoid it: Create a written breach notification policy outlining steps, roles, and timelines. Our template has you covered.