The answer is in the "covered entity" definition found at 160.103
"Covered entity means...A health care provider who transmits any health
information in electronic form in connection with a transaction covered
by this subchapter"

So the transmission must be in connection with a standard transaction
(e.g. claims, eligibility, encounter, claims status, referal
certification and authorization, etc.)

Regards, lhc
Leah Hole-Curry, JD
FOX Systems, Inc.
602.708.1045 
Information transmitted is confidential and may be proprietary to FOX
Systems, Inc.  It is intended only for the person or entity to which it
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>>> <[EMAIL PROTECTED]> 01/31/03 08:59 AM >>>
At a meeting yesterday of our parent organization's privacy officers we
had
a discussion I'd appreciate some feedback on.  One of the organizations
is
a long-term care/retirement facility that indicated they do not "bill"
electronically.  Therefore they are not a covered entity.  However,
after
further discussion they indicated they do in fact send via fax and/or
email
individual identifiable health information to other covered entities (ie
hospitals, referral agencies, and referring agencies).  Some contended
because they did not use EDI, they didn't really need to comply, others
indicated they were because they do send PHI via electronic media.

Can anyone provide an insight?

Thanks.

Charles.

********************************


Charles R. Carnahan, M.Div., M.B.A.


Chief Operating Officer


CAB Health and Recovery Services, Inc.


111 Middleton Road


Danvers, MA 01923


Phone: 978-739-7600


FAX: 978-750-3620


www.cabhealth.org


*********************************



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