HIPAA Beyond Hospitals: Why Tech & SaaS Companies Are Now Under Scrutiny
Filed in Federal Privacy — November 21, 2025
Introduction
The rulebooks may say the Health Insurance Portability and Accountability Act of 1996 (HIPAA) applies only to health care providers, insurers, and their vendors—but in practice, the law’s reach is expanding. With cloud-based platforms, mobile apps, analytics engines, and digital health tools, many companies outside traditional healthcare are now handling or interacting with protected health information (PHI).
HIPAA doesn’t just apply when you think “hospital + patient record.” If your platform stores, processes, or shares data that can be linked to an individual’s health status, treatment, or payment for care, you may still fall under HIPAA compliance obligations.
Who Is Covered—and Why It Matters for Tech & SaaS
Under HIPAA, a covered entity includes health plans, healthcare providers who conduct certain electronic transactions, and healthcare clearinghouses (HHS – HIPAA Privacy Rule Overview).
But HIPAA also extends to business associates—entities that perform functions or activities involving the use or disclosure of PHI on behalf of a covered entity (HHS – Business Associates Guidance).
For example, a SaaS provider hosting patient portals, a mobile app capturing health-related metrics, or a cloud analytics engine used by a clinic could be a business associate if it creates, receives, maintains, or transmits PHI.
If you fall under HIPAA’s scope, you must comply with the Privacy Rule, Security Rule, and Breach Notification Rule—regardless of whether you are a hospital or a tech company.
What Tech & SaaS Companies Should Know
1. Access and manage PHI appropriately
If your platform allows users to upload or generate health-related data, treat that data with the same care a hospital would. Encryption, role-based access controls, audit logs, and strong authentication are all key.
2. Vendor and user contracts matter
If you provide services to a covered entity, you likely need a Business Associate Agreement (BAA). That agreement must spell out how PHI is handled, restrictions on use or disclosure, and obligations in case of a breach.
3. Tracking technology & analytics raise red flags
The Office for Civil Rights (OCR) at the U.S. Department of Health & Human Services issued guidance titled Use of Online Tracking Technologies by HIPAA Covered Entities and Business Associates, clarifying how cookies, pixels, and other tracking tools may inadvertently disclose PHI. If your site integrates third-party trackers or ad analytics, you must evaluate HIPAA risk.
4. Unauthorized disclosures still expose you
HIPAA applies when PHI is accessed or disclosed in a manner not permitted by the Rules. Even as a tech vendor, you may be liable if you store or transmit PHI without proper safeguards.
Recent Enforcement Case: Online Tracking and Unauthorized Disclosure
In 2024, the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) investigated several hospitals and digital health vendors for sharing patient data with third-party tracking technologies.
OCR determined that the use of tracking pixels and cookies on hospital websites and patient portals transmitted PHI—such as appointment details and IP addresses—to third-party analytics platforms without consent. This enforcement wave, highlighted in OCR’s Bulletin on Online Tracking Technologies, demonstrates that non-healthcare tech partners are not immune from HIPAA obligations.
The investigations led to corrective action plans and potential financial penalties for both covered entities and business associates, signaling that HIPAA enforcement now extends beyond traditional healthcare to include vendors, SaaS companies, and digital marketing firms that process health-related user data.
Why This Is a Business Risk
Ignoring HIPAA isn’t just a regulatory issue—it’s a business one.
- You could face civil penalties or investigations by HHS OCR.
- Healthcare clients may terminate contracts if you’re non-compliant, impacting revenue and trust.
- Public confidence drops quickly after a data breach—and so does market credibility.
In short: compliance is now a competitive advantage. Tech companies that proactively build HIPAA compliance into their design and operations will stand out as trustworthy partners.
How The Data Privacy Lawyer PLLC Can Help
At The Data Privacy Lawyer PLLC, we help tech, SaaS, and data-driven companies interpret and implement HIPAA obligations—even if they aren’t traditional healthcare providers.
Our team offers:
- HIPAA scope and risk assessments for digital platforms
- Contract drafting and BAA reviews
- Privacy-by-design frameworks aligned with HIPAA and other U.S. privacy laws
- Guidance on marketing analytics, AI, and data sharing under HIPAA rules
Contact & Call to Action
If your tech or SaaS company handles health-related data or partners with healthcare entities, it’s time to ensure full compliance. Contact:
The Data Privacy Lawyer PLLC
🌐 www.thedataprivacylawyer.com
📧 info@thedataprivacylawyer.com
📞 +1 (202) 946-5970
📚 Resources
A practical checklist to evaluate and strengthen the foundation of your privacy program—so you’re not caught off guard by gaps, risks, or outdated practices.
When compliance feels overwhelming, it’s easy to freeze or delay action. This checklist helps you cut through the noise, identify what’s missing, and move forward with clarity and confidence. Let’s simplify the complex and get your privacy program into proactive, aligned motion.
