Which of the following entities has to implement HIPAA policies to protect PHI?

The implementation of HIPAA policies to protect Protected Health Information (PHI) is mandatory for covered entities and business associates. Covered entities include healthcare providers, health plans, and healthcare clearinghouses that transmit any health information in electronic form in connection with a HIPAA transaction. Business associates are individuals or entities that perform functions on behalf of or provide services to covered entities that involve the use or disclosure of PHI.

This broad definition ensures that any party handling PHI is required to comply with HIPAA regulations, thereby safeguarding patients' privacy and ensuring that their health information is kept secure. The inclusion of both covered entities and business associates reflects the importance of comprehensive compliance across the healthcare spectrum, which helps prevent unauthorized access to sensitive health information.

The other options are limited in their scope; they do not encompass the full range of entities obligated to implement HIPAA policies. For instance, only private healthcare providers neglects the obligations of health plans and health clearinghouses, while the reference to government health agencies is too narrow, ignoring the responsibilities of a wide array of healthcare-related businesses and entities. Similarly, a focus solely on healthcare providers working with non-profits excludes the necessary compliance obligations of business associates and other covered entities.