Medical Privacy Regulations Would Regulate
Use of Personal Information

New federal medical privacy regulations, touted by the Clinton administration as a landmark of patient protection, would ­ for the first time ­ explicitly permit doctors, hospitals, other health services and some of their business associates to use personal health records for marketing and fundraising.

The rules were included in federal regulations after a months-long public relations effort by the industry. Under the exemptions, doctors, clinics, hospitals and others that normally have access to medical records ­ along with business associates working under contract with them ­ would be allowed to send out individualized health information and product promotions.

A pregnant woman, for instance, could receive pitches about vitamins or infant health-care products. A patient who has been treated for sexually transmitted diseases could receive telemarketing calls offering condoms or new medicines.

The exemptions also give foundations affiliated with hospitals continued access to patient names, ages, addresses and telephone numbers for fundraising initiatives. Such foundations raise billions of dollars annually by soliciting patients and their families at medical facilities and at their homes.

Officials of the Department of Health and Human Services and some patient advocates said the new privacy regulations announced Dec. 20 will still help protect against the misuse of patient information, notwithstanding the exemptions.

When the rules fully take effect in two years, proponents said, patients will have a new right to access their own records; employers will be prohibited from receiving personal health data, except for the administration of health plans; and people who misuse private medical records, such as selling them, could face fines or prison.

In addition, any health-care provider or service that uses medical records will have to notify patients how they're doing so. Patients also will have the option of saying no to marketing or fundraising ­ but only after they have been contacted at least once by a given entity.

Gary Claxton, deputy assistant secretary for health policy at HHS, said the department attempted to juggle the protection of medical records while still encouraging the flow of information to improve patient care. "It's the best we could do and we think we did a good job," Claxton said. "There's going to be a lot of discussion as this is implemented. If changes need to be made, they should be made."

The provisions don't sit well with critics, who contend that patients ought to have a right to say no upfront to uses of their medical records that do not have a direct bearing on healthcare. Some critics also may be urging states to write tougher rules of their own.

"Once they have open access, where else does it go? It is too big a loophole," said Sen. Patrick J. Leahy (D-Vt.), who may pursue legislation on the matter. "In the digital age, any loophole is bigger than it looks."

Source: Excerpted from the Washington Post.

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