It appears, based on Mr. Yarden's supposition, that he also does not understand the far reaching implications behind the regulatory text.
One of the true issues brought out by Mr. Yarden is the broad interpretations on each of the individual regulations. However, that is where the problem lies. CE's are NOT supposed to be compliant with each individual regulation. They are supposed to be compliant with all regulatory text.
Given that HIPAA will not be finalized until late 2007 (purportedly), a CE can not be compliant, but can only work towards compliance. Furthermore, only the CE itself can determine whether it is achieving HIPAA compliance or not, based upon it's own risk mitigation. A consultative body, outsourced body, orresource not intrinsic to the CE is free from accountability and subsequent penalties for non-compliance.
A questions beg in response to Mr. Yarden. If a complaint is filed on his customer and the DHHS or DOJ determine non-compliance it is Mr.Yarden's company or Mr. Yarden himself who will serve the time and pay the penalties? Does Mr. Yarden's contract provide with this stipulation?
Ladies and Gentlemen, the bottom line is not our opinion or beliefs. The bottom line is what is law whether we like it or not. The regulatory text is exceedingly clear on who is held accountable for CMP's or time served for non-compliance: The CE as a whole (CMP's), the CECP (CMP's & time served) and the CE employee who committed the non-compliance (CMP's and time served).
Not that anyone should care, but I am the Compliance and Security Officer for a software development company serving the healthcare industry. We have been dealing with HIPAA since 1996.