HIPAA-compliant software development: Key requirements and practices

Building HIPAA-compliant software is one of the standard requirements in the healthcare industry, considering that over 725 data breaches were reported to the OCR in 2023. The average cost of a healthcare data breach reached $9.42 million in 2021, so it's essential you follow the industry's best practices and avoid common mistakes.

In this article, we share a detailed HIPAA software development guide covering all the requirements, aspects, and steps toward full compliance. Read on to learn how to create a high-quality app and prevent potential breaches in your software.

Key HIPAA requirements in software compliance

HIPAA-compliant software development requires you to implement several rules that ensure the privacy of Protected Health Information (PHI). This includes three rules that will be your essential regulations to consider in the development process.

Privacy

Working on HIPAA-compliant app development requires you to implement measures that control who has access to PHI and under what circumstances. This means you'll have to add various access features and ensure they're used appropriately by all involved people.

Security

This rule focuses on the technical and administrative mechanisms necessary to protect electronic PHI. It requires the implementation of secure systems that ensure confidentiality, integrity, and availability. You'll have to consider both the software and physical infrastructure.

Breach notification

In the event of a data breach, software handling PHI must include mechanisms to report these breaches immediately. You must notify both the affected people within 60 days of the occurrence. If the breach involved 500+ people, you must also notify the Department of Health and Human Services (HHS).

Core aspects of HIPAA-compliant software development

HIPAA compliance application development includes several core aspects that build up the whole concept. Let's break them down.

Data encryption

Data encryption is a crucial HIPAA application development requirement that protects PHI, making it readable only to authorized users. It protects data both in transit and at rest using various encryption methods. The most frequent options are:

  • AES-256: one of the most secure encryption approaches.

  • SSL/TLS Protocols: the best choice to secure data transmission.

Even with the best security protocols in place, sensitive data is vulnerable to interception. That's why data encryption is essential when building a HIPAA-compliant app.

Access controls & authentication

Access controls govern who can view and modify PHI within the system. They are an effective way to ensure that only authorized individuals can access sensitive data. Typically, you would implement these layers of security:

  • Role-based access control: this means setting certain roles for each user with different available features and limited data accessibility.

  • Multifactor authentication: MFA requires two or more verification forms before granting access, ensuring an additional security layer. A typical example is combining a password with biometrics.

  • Least privilege principle: providing a minimum level of access to users, ensuring they have just enough data to perform their duties. This reduces the risk of unauthorized access to PHI.

You can include roles like administrator, healthcare provider, billing and insurance staff, patient, IT support, and others. All these are essential elements during HIPAA compliance app development.

Audit trails & activity monitoring

Building HIPAA-compliant applications requires you to maintain audit trails and monitoring systems to track all access and activity related to PHI. This regulation makes it easier to find security breaches or unauthorized access. Some features include:

  • Detailed logs: systems should record every time PHI is accessed, modified, or transmitted. These records should show who looked at the data, when they looked at it, and what they did with it.

  • Monitoring tools: implementing tools that continuously monitor and analyze system activity helps identify suspicious behaviors in real time, such as unusual login attempts or data downloads.

  • Retention of logs: HIPAA requires audit logs to be stored securely for at least six years, ensuring that historical access data is available for review if needed.

These features are a must-have during HIPAA app development. They can help the company and customer deal with many issues, potentially saving thousands of dollars in case of any suspicions of breach.

Data backup & recovery

Another aspect of HIPAA software development is including a reliable backup and recovery plan. There's always a risk of system failures, cyber-attacks, or natural disasters. For example, infrastructure located in the USA is always in danger of being physically damaged by hurricanes. That's why you must always have procedures to ensure PHI can be retrieved, restored, and protected during any event.

This includes some basic features:

  • Regular backups: you'll need both on-site and off-site backup solutions, coupled with encryption applied to all data. The best-case scenario is doing a backup once every 24 hours.

  • Disaster recovery plans: you must write down all the steps the team should take to restore systems and data.

    This includes identifying critical systems, backup locations, and responsible personnel.

  • Testing and validation: regularly test your backup and recovery approaches to ensure everything works perfectly. This will let you restore data whenever needed.

Failure to maintain proper data backups could lead to catastrophic data loss, making recovery difficult or impossible. This would result in non-compliance and could negatively impact patient care. A single backup can be a real lifesaver.

User training

Although user training is often overlooked, it's one of the most important aspects of HIPAA compliance. Sometimes, even the best tech won't be effective if users are unaware of risks and fail to follow protocols. That's why all employees who handle PHI must receive regular training.

The training must include topics covering:

  • Phishing and social engineering attacks;

  • Password management;

  • Incident reporting;

  • Security policies and procedures.

Proper training reduces the risk of human error and creates a culture of security within the team. So, it's essential that employees remain informed about all updates and possible outcomes. HIPAA compliance builds this culture of security well enough.

4 steps to build HIPAA-compliant software

Now, we shall cover the HIPAA-compliant software development process. This implies four steps that will help you create a reliable health employer portal, patient portal, and any other product.

Risk assessment

One of the first HIPAA-compliant app development steps is assessing potential risks. This involves identifying all potential vulnerabilities in the system where PHI could be exposed or compromised. The process may include these elements:

  • Identifying PHI flow: mapping out how PHI moves through the system. This covers everything from data input to storage and transmission. It helps you understand where vulnerabilities may exist.

  • Threat identification: understanding the potential threats that could impact the confidentiality, integrity, and availability of PHI. This includes cyberattacks, system failures, and unauthorized access.

  • Impact analysis: assessing the potential impact of each identified threat on PHI security and the healthcare organization.

  • Vulnerability evaluation: finding the most critical issues and focusing on them first.

Understanding the risks during the early development stages allows you to safeguard the system in advance. That's why it is necessary always to measure all possible threats beforehand.

Security implementations

Once risks have been identified, the next step is to implement security measures to mitigate them and ensure the software complies with HIPAA's Security Rules. These implementations should address technical, administrative, and physical safeguards.

Data encryption

Encrypting data both at rest and in transit is one of the most critical security measures. HIPAA requires that sensitive information is encrypted to prevent unauthorized access. Developers should ensure that:

  • Protocols like AES-256 are used to encrypt all private information.

  • Data transmission between users and the server is protected using SSL/TLS protocols.

Access controls

It's necessary to ensure that only certain employees have access to PHI. You need strict access control to limit data availability and strengthen security against unauthorized access attempts.

Activity monitoring & audit logs

Activity monitoring helps ensure that all actions involving PHI are logged and traceable. Audit trails can provide an invaluable resource for investigating suspicious activity or breaches. All access to PHI, data modifications, and transmissions should be logged for future audits.

Secure data backup

A secure backup process is essential to ensure that personal information can be restored in case of data loss, system failure, or cyberattack. Make sure backups are safe and stored in places that follow HIPAA rules, like specialized cloud services with all compliance features.

We share how to create a healthcare SaaS application with a step-by-step guide where you can learn more about the development process. Check it out for more detailed insights.

Continuous compliance monitoring & updates

HIPAA compliance isn't a one-time task. It requires ongoing monitoring and regular updates to maintain compliance as technology, regulations, and threats evolve. Continuous monitoring involves:

  • Real-time threat detection: deploying systems that monitor the software for security threats or vulnerabilities like unauthorized access attempts, unusual activity patterns, or data breaches.

  • Patch management: regularly updating the software to fix security vulnerabilities, bugs, or outdated features.

    This ensures the system is always operating with the most up-to-date security protocols.

  • Compliance checks: setting up automated or manual checks to review software compliance with HIPAA's rules and regulations. These checks should be performed regularly and after significant system updates or changes.

If you maintain compliance and follow all updates in regulations, you won't have to worry about emerging threats. It's a way to prevent all risks and protect yourself. Our HIPAA software development guidelines will help you do so.

Conducting regular audits

Regular audits are essential to verify that your software is continuously meeting all HIPAA compliance requirements. This includes:

  • Regular internal audits;

  • Third-party audits;

  • Audit documentation.

This allows you to check all systems inside out and get an objective view of their current state. It's always a win-win: you ensure everything remains compliant while addressing potential weaknesses in the process.

Common mistakes to avoid in HIPAA-compliant development

Although there are dozens of mistakes when developing HIPAA-compliant software, we usually hear about the following issues from our clients who have worked with other vendors.

Neglecting encryption

Failing to implement strong encryption leaves PHI vulnerable to unauthorized access. Data must be encrypted either way, at rest or during transmission, to prevent breaches. Even if other security measures are in place, sensitive data can be exposed without encryption.

Poor access management

Improper access controls can allow unauthorized users to view or modify PHI. Implementing role-based access controls and multifactor authentication ensures that only authorized people can access sensitive data. Failing to manage access effectively increases the risk of data breaches and non-compliance.

Inadequate breach response plans

The lack of a clear and tested breach response plan can lead to delayed actions during a security incident. HIPAA requires prompt breach notifications and procedures to minimize damage. An inadequate response plan increases the risk of significant data loss and legal penalties.

Best practices for ensuring HIPAA compliance

If you want to develop HIPAA-compliant software that saves your company money, follow these practices for optimal results.

Partnering with a HIPAA-certified hosting provider

Collaborating with a HIPAA-certified hosting provider ensures that your infrastructure meets the required security standards for handling PHI. These providers offer secure data storage, encryption, and access control measures that are essential for maintaining compliance and safeguarding patient's data. Our team knows the best options for all budgets.

Integrating compliance early in the development cycle

Incorporating HIPAA compliance during the design and development phases prevents costly redesigns later. Addressing security and privacy concerns from the beginning ensures that your software is built with the necessary features: encryption, access control, and audit trails to protect PHI.

Regular employee training on HIPAA regulations

Ongoing training ensures that all staff members understand their roles in maintaining HIPAA compliance. Employees must be aware of security protocols, data handling procedures, and breach response strategies to minimize risks. Regular training updates help address new threats and regulatory changes.

Partner with Dworkz: your HIPAA-compliant team

Dworkz is your reliable UI/UX design agency in San Francisco and a tech partner in creating HIPAA-compliant software. Our engineers ensure your solution meets all privacy standards from design to implementation, providing top-tier solutions that make your organization stand out.

The experts at Dworkz know how to build a HIPAA-compliant app that's both secure and reliable due to our rich experience working with top healthcare brands like Collective Health, Gali Health, Care in Sync, and dozens of other companies. You're guaranteed to get our expertise on your project.

Contact our team today for a detailed estimate, and start working on your software now!

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