What are hybrid entities under HIPAA?

Hybrid entities under HIPAA are defined as organizations that engage in both covered and non-covered functions. This means that a hybrid entity has parts that are subject to HIPAA regulations due to their involvement in healthcare operations—such as providing medical care or handling protected health information (PHI)—as well as parts that are not subject to those regulations, which may include unrelated business activities.

For a better understanding, the concept of hybrid entities allows organizations that have mixed purposes to ensure that only the relevant sectors comply with the stringent requirements of HIPAA, while still allowing for other parts of the business to operate without those constraints. This structure is particularly beneficial for larger organizations that might have diverse functions beyond healthcare, striking a balance between regulatory compliance and operational efficiency.

In contrast, entities that have no affiliation with any healthcare operations or those that only conduct non-healthcare activities do not qualify as hybrid entities since they do not engage in any HIPAA-covered functions. Similarly, not every healthcare provider is categorized as a hybrid entity, as many operate solely within covered healthcare functions without any non-covered components.