During yesterday’s webinar Healthcare Reform: One Year After, presenter Mark O. Dietrich told listeners that the Health Information Technology for Economic and Clinical Health Act (HITECH Act) makes “business associates” like appraisers directly responsible for complying with certain provisions of HIPAA privacy rule and all of HIPAA’s security rules. He recommended that engagement letters be modified to specify that clients should not provide the appraiser with any HIPAA-covered information without first obtaining a Business Associates Agreement.
 
In addition, when valuing physician practices, appraisers need to ask the physicians whether they expect to qualify for the HITECH Act incentive payments for implementation and “meaningful use” of Electronic Health Records. “For providers who have already incurred the expense, this is a windfall straight to the bottom line which adds value,” explains Dietrich. “For those who currently implement and qualify for the incentive payments, there could be a capital expenditure reduction, which again affects value.”
 
For more information on the HITECH Act’s “Business Associates Contract” click here.