BITS BLOG
Law Firms and HIPAA: Are You a Covered Entity Without Knowing It?
Understanding your risk exposure when legal work involves protected health data
Most law firms assume HIPAA compliance is only a healthcare issue. But if your firm handles protected health information (PHI), even indirectly, you may fall under HIPAA’s scope as a Business Associate.
From contract review and litigation to employment law and healthcare-related transactions, legal professionals are increasingly working with sensitive health data. And with that access comes real risk.
This article explains what law firms need to know about HIPAA responsibilities, how risk exposure occurs, and what you can do to reduce liability.
Why Law Firms Are at Risk
HIPAA applies to two main types of organizations:
- Covered Entities such as healthcare providers, insurers, and clearinghouses
- Business Associates who provide services that involve PHI on behalf of Covered Entities
Many law firms qualify as Business Associates, often without realizing it.
If your firm drafts contracts for medical practices, handles employment disputes involving healthcare staff, manages compliance-related litigation, or advises on mergers involving healthcare organizations, you are likely exposed to PHI.
In that case, you are required to follow HIPAA privacy, security, and breach notification rules. These are not just technical checklists—they are legal requirements.
What Counts as PHI in a Legal Setting?
Protected Health Information includes any individually identifiable health data. In a legal context, this might appear as:
- Medical records in a personal injury or malpractice case
- Employee health information in an HR dispute
- Invoices or payment details from healthcare providers
- Exhibits or documentation from a compliance investigation
- Case files involving disability or mental health evaluations
Even temporary access creates exposure and triggers responsibility.
Real-World Scenarios Where Law Firms Face HIPAA Risk
1. Contract Review
A law firm evaluating a service agreement for a healthcare client receives spreadsheets containing patient data. Without safeguards or a Business Associate Agreement (BAA), the firm could be in violation of HIPAA.
2. Data Breach
A file-sharing platform is compromised, exposing litigation files with PHI. If encryption, audit logging, or proper access controls are not in place, the incident becomes reportable under HIPAA rules.
3. Email Error
An attorney sends a document that includes patient names to the wrong recipient. Even a single misstep can lead to legal obligations and reputational damage.
What Law Firms Should Do
Identify Where PHI Exists
Review your case types, communication tools, and matter intake processes. Determine if you handle PHI or serve healthcare-related clients.
Strengthen Your Systems
Make sure all devices, cloud services, and collaboration tools use encryption, multi-factor authentication, and appropriate access control.
Use Business Associate Agreements
If you qualify as a Business Associate, you must have a signed BAA with each Covered Entity client. This is a legal requirement.
Train Your Staff
Attorneys, paralegals, and administrative staff should understand what PHI is, how to handle it, and what to do if something goes wrong.
Engage a Security Advisor
Your IT provider may keep your systems running, but they are not responsible for risk governance. Work with a cybersecurity consultant who understands legal workflows and HIPAA exposure.
How BITS Cyber Supports Law Firms
BITS Cyber helps law firms:
- Identify where HIPAA risk exists and confirm Business Associate status
- Secure file access, cloud communication, and mobile devices
- Train staff to handle PHI correctly and prevent breaches
- Prepare for client audits or compliance requests with clear documentation
Our team speaks both security and business, so your firm can stay compliant without losing productivity.
Final Thought
If your firm touches PHI, you may be subject to HIPAA.
This is not just a healthcare issue. It is a legal and business risk issue.
Don’t wait for a breach or client demand to force action.
Get proactive. Secure your processes. And protect your reputation.