Certified Healthcare Technology Specialist (CHTS) Process Workflow & Information Management Redesign Practice Exam

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What does the term 'Covered Entity' (CE) refer to in healthcare?

  1. Organizations exempt from HIPAA

  2. Organizations that must comply with HIPAA rules

  3. Individuals with health-related rights

  4. Any healthcare worker

The correct answer is: Organizations that must comply with HIPAA rules

The term 'Covered Entity' (CE) in healthcare refers specifically to organizations that must comply with HIPAA (Health Insurance Portability and Accountability Act) rules. These entities include healthcare providers who transmit any health information in electronic form, health plans, and healthcare clearinghouses. They are obligated to protect patient information and ensure privacy in handling health data. Understanding this term is essential as it defines the scope of organizations that are held accountable under HIPAA regulations. Covered Entities are required to implement safeguards to protect patient information and are subject to audits and penalties for non-compliance. This designation emphasizes the importance of maintaining privacy and security in healthcare practices, which is foundational to patient trust and confidentiality in the health system.

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