HIPAA has led to sweeping changes to health care administration and information systems as health care organizations struggle to achieve cost-effective compliance by 2003. The US Congress enacted the Health Insurance Portability and Accountability Act or HIPAA in 1996. The act covered a wide array of issues surrounding the health insurance industry but in particular it required administration simplification, which addressed the issue of security and privacy of health information. HIPAA is designed to standardize the way all health care organizations electronically exchange sensitive patient data and to protect patients from unauthorized disclosure of their medical records (whether paper or electronic). HIPAA outlined standards to improve the nation's health care system by incorporating electronic data exchange between health care providers. The idea of course was to allow various health providers to access the records of a particular patient. So, when a patient visits a new hospital, the covering doctor can access that patients past record and in so doing provide him with better care. However, as one could envisage, this raised a great number of apprehensions with respect to the privacy and confidentiality of people's medical records. So the legislature created a fundamental list of rules and ...