The VRC Newsletter (August 6)

📬 HIPAA 2.0, AI Risks, and New State Laws — Everything You Need to Know This August

In partnership with

Essential Steps for Compliance

Artificial Intelligence (AI) is changing the way healthcare organizations operate. From voice-enabled scheduling tools and clinical scribing assistants to advanced diagnostics and triage systems, AI is unlocking greater efficiency, accuracy, and speed across the industry.

But while the promise of AI is powerful, it comes with serious compliance responsibilities, especially when Protected Health Information (PHI) is involved.

If your AI tools collect, analyze, or generate content based on PHI, then they are part of your HIPAA environment. That means they are subject to the same standards for data protection, access control, risk analysis, and breach response as any other system that handles PHI.

And the pressure is mounting.

📢 Enter HIPAA 2.0

Proposed changes to HIPAA—often referred to as HIPAA 2.0—aim to modernize the regulation in response to today’s digital healthcare landscape. These updates are expected to strengthen privacy protections, clarify the responsibilities of covered entities using AI, and impose stricter obligations around risk assessments, policy documentation, and workforce training.

While the final rules are still pending, the message is clear: organizations must prepare now or risk falling behind.

🔐 Essential Steps for AI and HIPAA Compliance

To ensure compliance with both current and future HIPAA requirements, organizations must implement clear, actionable controls:

  • Data Sanitization Before AI Model Training: Organizations must remove or anonymize identifiable patient information from datasets before using them to train AI models. Data sanitization prevents unauthorized exposure of patient identities, ensuring that trained AI tools do not inadvertently disclose PHI.

  • Strengthened Access Controls and Multi-Factor Authentication (MFA):
    Strictly manage who can access AI tools and datasets containing PHI. Implementing MFA adds a critical layer of security, significantly reducing the risk of unauthorized data access or misuse.

  • Comprehensive Inclusion of AI in Risk Analysis and Audit Trails: Regularly evaluate AI systems and applications as part of your mandatory HIPAA risk analyses. Ensure detailed logs of AI activities are kept, monitored, and audited regularly, supporting accountability and incident response.

  • Updated Documentation, Policies, and Employee Training: Clearly define the acceptable use, limitations, and risk management protocols for AI in your HIPAA policies and procedures. Train all employees and stakeholders comprehensively to ensure understanding and adherence to these new compliance measures.

🛡️ VanRein Compliance: Your Best Choice For AI Compliance

VanRein Compliance provides tailored support to any organizations navigating AI-related compliance complexities. Our specialized HIPAA and AI services include:

  • AI-Integrated Risk Assessments: Thorough evaluation of your AI vendors and technologies, ensuring each meets stringent HIPAA and emerging regulatory standards.

  • Customized HIPAA Documentation and Policy Updates: Expert guidance to create comprehensive, audit-ready documentation explicitly tailored to include AI-specific compliance measures.

  • Targeted AI and HIPAA Training Courses: Specialized courses designed to educate your staff about integrating AI into healthcare processes safely and compliantly, keeping your team prepared and knowledgeable.

  • ISO 42001 Certification and AI Audit Services: Certification services and rigorous AI compliance audits that demonstrate your commitment to international standards and readiness for HIPAA 2.0 compliance.

📬 Already a VRC client? We can bundle our services saving you money and time!

🎯 Immediate Action for Long-Term HIPAA Compliance

HIPAA 2.0 represents a fundamental shift in managing PHI, significantly affecting organizations using AI technology. Proactive compliance measures are not just recommended—they are essential.

Ensure your AI practices meet regulatory expectations and safeguard your organization against compliance breaches. The time to prepare isn’t later. It’s now. Let’s make sure your AI tools are secure, compliant, and audit-ready.

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July brought two major updates to U.S. state-level privacy laws—each with serious implications for how businesses collect, process, and store personal data.

🔹 Tennessee’s TIPA (Tennessee Information Protection Act) - July 1, 2025
Now in effect, TIPA requires organizations to conduct data protection assessments, limit how long personal data is retained, and ensure clear consent mechanisms are in place. If you’re collecting sensitive consumer information, this law applies to you.

🔹 Minnesota’s MCDPA (Minnesota Consumer Data Privacy Act) - July 31, 2025
Minnesota’s new law introduces robust consumer rights, including the ability to access, delete, and opt out of profiling. It also tightens vendor oversight requirements and mandates clear privacy notices.

🕒 And coming soon:

🔹Maryland’s MODPA (Maryland Online Data Privacy Act) - October 1, 2025
one of the strictest consumer privacy laws in the country, with heightened protections for sensitive data and strong limits on data sales and processing.

VanRein Compliance Can Help
📍 Track your compliance requirements across states through VRC1
📑 Build and maintain privacy policies tailored to each law
📬 Automate consumer request workflows and vendor contracts

🎯 Action Tip: State laws are changing fast. Don’t wait for an enforcement letter.

Staying Compliant in a Rapidly Changing Landscape

Compliance is no longer a once-a-year checkbox—it’s a real-time, ongoing commitment that evolves with your business. As privacy laws, AI developments, and industry standards change rapidly, businesses must adopt a flexible, continuous approach to governance.

Adaptive governance means embedding compliance directly into your day-to-day operations and product development processes. Instead of periodic audits, your team continuously tracks, assesses, and manages risk in real-time.

Benefits of Adaptive Governance

  • Real-Time Compliance Management: By integrating compliance directly into workflows, teams can promptly identify and resolve compliance issues, minimizing risks and improving response times.

  • Dynamic Risk Scoring and Visualization: Continuously assess risks using real-time data. Tools like VRC1 platform provide immediate visibility into compliance health, allowing for proactive rather than reactive measures.

  • Automated Training and Evidence Collection: Keep your workforce continuously informed and compliant through automated training updates, seamless evidence documentation, and timely policy distribution.

VRC and VRC1 Support Adaptive Governance

VanRein Compliance and our exclusive VRC1 platform provide your business with practical, real-world, time-saving solutions to embed adaptive governance directly into your operations:

  • Embedded Compliance Workflows: Compliance activities are integrated seamlessly into your existing processes, eliminating disruptions and ensuring compliance becomes a natural part of your organizational culture.

  • Real-Time Risk Monitoring: Stay ahead with automated risk scoring and visualization that allows you to track compliance continuously and respond swiftly to changes or new regulations.

  • Automated Compliance Education: Automatically deliver role-based training updates, track completions, and maintain documentation—ensuring your team is always informed and ready for audits or inspections.

🚀 Make Adaptive Governance Your Strategic Advantage

In today’s rapidly evolving regulatory environment, adaptive governance is not just beneficial—it’s essential. Position your organization to proactively meet compliance challenges and turn governance into your competitive advantage.

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