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HIPAA compliance is an important consideration for any healthcare organization that may process or store any type of health information. But does this mean that every software solution your organization uses needs to be HIPAA-compliant? Don’t end up overpaying for software because of confusion around HIPAA compliance—especially when it comes to accounting software.
Here is what you need to know about HIPAA compliance and accounting software:
1. Does my organization need to be HIPAA Compliant?
According to Health and Human Services (HHS), your organization needs HIPAA-compliant software when it directly interacts with protected health information (PHI). HHS has developed a helpful guide to determine whether your organization is a covered entity, and needs to follow HIPAA compliance. Common covered entities include doctors, clinics, psychologists, health insurance companies and more.
2. Does all of my organization’s software need to be HIPAA-compliant?
HHS’s Office of Civil Rights issued a position on HIPAA-compliant cloud solutions providers, and this is the most common area of confusion concerning HIPAA compliance and adjacent software:
- If your organization’s software processes any PHI transaction, it must be HIPAA-compliant.
- If you’re in a health-related field, but your software does not transmit PHI like administrative software, it does not need to be HIPAA-compliant.
Simply put, if the software your organization uses interacts with PHI, it needs to be HIPAA compliant. If it doesn’t, the HIPAA requirement may not be needed. Accounting software does not generally interact with PHI and therefore does not need to meet HIPAA compliance, however it is always best to check with your compliance team to confirm.
If your organization is looking for accounting software, MIP Fund Accounting is a great option for Federally Qualified Health Centers and other similar health centers, and is equipped with features that help allocate, report, budget, and run payroll across multiple funding sources. MIP tracks unlimited funds and manages financial books with ease. As the nation’s leading cloud-based, fund accounting software for healthcare organizations across the country, organizations that use MIP can handle intricate financial processes in a streamlined, user-friendly system.
MIP’s built-in features and security for healthcare organizations includes:
- Unlimited Fund Tracking in One System
A flexible Chart of Accounts structure allows users to track an unlimited number of funds, grants, services, projects, locations, and more, enabling you to create reports that are meaningful for you and your stakeholders while staying compliant with state, county, and federal audit reporting standards.
- Comprehensive Reporting
Create reports unique to your organization using MIP’s drag-and-drop report editor. Generate your reports directly within MIP without relying on third-party solutions. Use any of the 340+ robust, dynamic report templates to get the information you’re looking for quickly. Spend less time building reports and more time analyzing your data to make better financial decisions. Create reports in minutes instead of hours or days.
- Budget Management
Create and collaborate on unlimited budget versions and build budgets against grants that span multiple periods. Improve staff efficiency with access to financial data in an integrated system, track expenses against grants, and quickly generate budgets to actuals to ensure you’re solid fiscal stewards.
- Integrated Payroll and HR
Track time to allocate payroll by grants, projects, or locations, produce timely and accurate employee pay and stay compliant with federal and state tax requirements. With an integrated HR solution, easily track employee data like certifications, time off, benefit plans, and more.
- Improved Team Efficiency
Automate data entry, eliminate errors, and save your organization time. MIP makes managing multiple funds simple. With built-in automation and “two-click” data imports, MIP can increase staff effectiveness and productivity.
- Complete Internal Controls
With robust internal controls, your organization tracks every user who accesses your financials and compiles the entries in a complete audit trail.
- Partner-driven Support and Training
As true partners, we stand shoulder-to-shoulder with you through your MIP journey. Our award-winning support team is staffed with experts in nonprofit accounting that treat you as more than just a ticket with unlimited, live phone support. Get your staff up and running quickly with informative, complete training opportunities.
- Administrative All Stars
With MIP Cloud, we handle the backup and update process so your team doesn’t have to. Plus, in the event of a natural disaster, we can get you up and running wherever you have access to the internet.
Articles and Resources You May Find Relevant:
- Are you a Covered Entity?
- CMS – Covered Entity Decision Tool
- Power Your Health Care Initiatives by Using a Fund Accounting Solution
- Customer Spotlight: Carolina Family Health Centers
- Curious how fund accounting software can benefit nonprofit health and community services?
- Hiring for Healthcare Positions: The Competitive Advantage of Robust HR and Payroll Systems
Contact us to learn more about MIP Fund Accounting for your healthcare organization.
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