Health Insurance Portability and Accountability Act(HIPAA)
Definition
A US law that sets national standards for protecting sensitive patient health information held by healthcare providers and their vendors.In-Depth Explanation
HIPAA governs Protected Health Information (PHI) in the United States. Software vendors that handle PHI for a healthcare provider are "business associates" and must sign a Business Associate Agreement (BAA) that extends HIPAA's privacy and security rules to them. Importantly, HHS does not issue or recognize any HIPAA "certification" — a signed BAA plus demonstrated compliance are the real evidence, so "HIPAA-certified" is a marketing claim rather than an official status.
Real-World Example
A medical transcription AI signs a BAA with a hospital so it can lawfully process patient recordings under HIPAA.