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Since the passage of HIPAA regulation, US hospitals have gone on a high gear by investing organizational resources on HIPAA policy and procedures, information technologies, and information privacy & security safeguards to achieve compliance status by the enforcement dates. Yet, recent industry report, conducted post HIPAA enforcement deadlines, presents a bleak picture of HIPAA compliance, raising concerns for the privacy and security of patient data, as well transactional efficiency of hospitals. Drawing from organizational sociology and organizational behavior literature the paper examines propensity of hospitals being fully compliant with privacy, security and transaction rules of HIPAA.
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