Using third-party Cloud Storage Service Providers (CSPs) is becoming increasingly common in healthcare, including dental practices. Whether for data backup, remote storage of electronic protected health information (ePHI), or instant access to tools like word processors, calendars, spreadsheets, or electronic dental records, CSPs provide clear convenience and cost-saving benefits. However, these advantages come with essential responsibilities - especially regarding HIPAA compliance.
Cloud Services and ePHI: A Powerful, Practical Tool
Cloud computing can significantly reduce the costs of managing complex IT systems internally. By storing data remotely, practices gain improved access, scalability, and disaster recovery capabilities. However, when these systems handle ePHI, they must comply with HIPAA regulations. Many healthcare professionals mistakenly think that simply choosing a reputable cloud service provider (CSP) meets their compliance responsibilities. This is incorrect. It is the duty of the covered entity (such as the dental practice or healthcare provider) to ensure that any CSP storing or transmitting ePHI on their behalf adheres to HIPAA.
The HIPAA Security Rule requires that covered entities and their business associates implement administrative, physical, and technical safeguards to protect ePHI. Specifically, they must: ensure the confidentiality, integrity, and availability of all ePHI created, received, maintained, or transmitted; identify and defend against reasonably anticipated threats to ePHI; prevent impermissible uses or disclosures of the information; and ensure workforce compliance with all relevant policies and procedures. These requirements apply not only to internal systems but also to any third-party services that handle ePHI, including CSPs.
Is a CSP a Business Associate?
Yes. According to recent guidance from the U.S. Department of Health and Human Services (HHS), any CSP that creates, receives, maintains, or transmits ePHI on behalf of a covered entity is regarded as a business associate under HIPAA. This designation involves legal responsibilities. Therefore, if your dental practice uses a CSP to store or process ePHI, you are required to:
Why You Need Competent Consultants or Legal Counsel
Navigating HIPAA compliance within cloud computing is not a simple checkbox task. The regulations are complex, and even unintentional missteps can lead to substantial regulatory penalties and reputational harm. That's why organizations should work with qualified consultants, HIPAA compliance specialists, or legal advisors experienced in healthcare data privacy and security. These experts can:
The stakes are significant. New proposed changes to the HIPAA Security Rule in 2026 could increase these stakes, and digital technology use is advancing rapidly. Relying solely on internal staff or your CSP’s assurances might not suffice. Professional guidance helps ensure your systems, contracts, and practices are defensible and compliant.
The Takeaway
Cloud computing is a powerful tool for modern dental practices. When used responsibly, it can streamline operations, lower IT costs, and improve patient data access. But convenience should not compromise compliance. HIPAA does not prevent the use of cloud services to store or manage ePHI. However, it requires that you (as the covered entity) ensure any third-party provider complies with all relevant regulations. That means doing your due diligence: perform a risk analysis, sign a BAA, and monitor compliance constantly. By taking these essential steps, you can enjoy the benefits of cloud computing while protecting your practice - and your patients - from costly breaches and violations.
The information contained on the DentistCare Blog does not establish a standard of care, nor does it constitute legal advice. The information is for general informational purposes only. We encourage all blog visitors to consult with their personal attorneys for legal advice, as specific legal requirements may vary from state to state. Links or references to organizations, websites, or other information is for reference use only and do not constitute the rendering of legal, financial, or other professional advice or recommendations. All information contained on the blog is subject to change.