The Health and Human Services Department finalized a new rule stating health tech firms that hoard patient data could face large penalties, according to a June 28 report from Politico.
HHS could impose fines of up to $1 million per information blocking violation, according to a June 29 report from HIPAA Journal.
As stated in a 2016 law, the 21st Century Cures Act, health firms must share medical records when requested by a patient.
Ensuring electronic records can be easily shared will grant patients better access to finding a new provider and receiving care and help prevent medical errors in the transfer process, according to the report.
HHS will determine the cost of fines depending on the severity of the violations. Companies have the ability to undergo an appeal process or decrease their fine by admitting their violations.
The rule, which does not apply to healthcare providers, was finalized June 27 and will go into effect after being published in the Federal Register, according to the report.