If your SaaS product touches health data in any way, you need to understand HIPAA. Violations can result in fines from $100 to $50,000 per incident, up to $1.5 million per year per violation category. Criminal penalties can include prison time. This is not optional compliance. But HIPAA compliance does not require a massive budget or a dedicated compliance team at the early stage. This guide breaks down exactly what SaaS founders need to know: what HIPAA actually requires, which technical safeguards to implement, how to execute a Business Associate Agreement, and the most common mistakes that get startups in trouble. First, determine if HIPAA applies to you. HIPAA applies to covered entities (healthcare providers, health plans, clearinghouses) and their business associates.
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