American Academy of Professional Coders (AAPC) Practice Exam

In the context of the Health Insurance Portability and Accountability Act (HIPAA), a covered entity refers to organizations that handle protected health information (PHI) and are thus subject to certain stringent regulations. Health care providers are considered covered entities as long as they transmit any health information in electronic form in connection with a HIPAA transaction. This includes medical professionals such as doctors, who not only provide direct patient care but also engage in billing and other administrative services that may involve electronic transactions. While hospitals also fit under the definition of a health care provider, the correct focus here is on the individual practitioners who deliver care and interact directly with patients. Unlike insurance agents and pharmaceutical companies, individual doctors directly provide health care services and are thus specifically noted as health care providers. This distinction highlights the role of doctors in the healthcare system and their responsibility in safeguarding patient information as mandated by HIPAA regulations.