Are Small Medical Practices Really Exempt from HIPAA Audits? Here’s What MSPs Know
Many small and medium-sized medical practices believe they are too small to be noticed when it comes to HIPAA audits and Security Risk Assessments (SRAs). A common misconception we hear from doctors and practice managers is, "We're not a hospital or a large network, so why would anyone audit us?" This belief can leave these practices dangerously exposed to compliance risks.
In our work as a Managed Service Provider (MSP) specializing in healthcare IT, we've encountered this mindset repeatedly. For example, one small dermatology clinic we worked with initially refused to do an SRA, convinced they were too small to be on anyone’s radar. Another five-provider family practice thought that since they used a reputable EHR system, they were automatically compliant. But here’s the truth: size doesn't exempt you.
HIPAA applies to all covered entities and business associates, no matter how small. The Office for Civil Rights (OCR) doesn’t only investigate major hospital breaches; they follow up on patient complaints, random audits, and even tips from former employees. In fact, small practices often face steeper consequences because they lack the legal and technical resources larger organizations have on hand. HIPAA requires that every practice conduct an SRA, document findings, and make plans to address risks. This isn’t optional.
Ignoring this obligation can lead to fines, reputational damage, and loss of patient trust — all of which can be devastating for a smaller practice. On the flip side, we’ve seen practices thrive after proactively addressing their compliance gaps, strengthening not only their data security but also their reputation with patients.
If you're unsure where to start, we’re here to help. Contact us today for a free consultation or to request our complimentary HIPAA SRA checklist. Together, we can ensure your practice stays compliant, secure, and trusted by the patients you serve.
- SamTransforming business operations with smarter technology.