The Importance of Properly Disposing Documents

Despite HIPAA’s establishment of medical record destruction rules 25 years ago, compliance remains a challenge for many pharmacies. In 2015, a significant breach occurred when a large multi-state regional grocery store chain was fined $10 million for improper disposal of pharmacy records. These records, containing sensitive medical and personal information, were found carelessly discarded in dumpsters.² Another notable incident occurred in 2009 when a pharmacy was fined $2.25 million for improper disposing of receipts and prescription bottles.³

With regulatory demands growing and shifting toward cybersecurity, now is a great time for pharmacies to review their HIPAA-related standard operating procedures and consider outsourcing medical record destruction to HIPAA-compliant shredding services. This strategy allows pharmacies to focus on preparing to comply with new regulations while safeguarding sensitive data.

The Critical Role of Shredding in Pharmacy Compliance and Security

Properly disposing sensitive documents through shredding is critical to protecting your business and your patients from breaches. Here are four reasons why it’s essential for pharmacies:⁴

• Guarantees Adherence to HIPAA Laws and Regulations

Shredding ensures compliance with HIPAA laws and regulations, which mandates that all disposed Protected Health Information (PHI) must be “rendered unreadable, indecipherable and incapable of being reconstructed.” Failure to properly dispose of PHI can result in penalties, including substantial fines and legal action.

• Safeguards Patient Confidentiality and Trust

Patients have a right to have their personal information protected from unauthorized access and misuse. Through secure shredding practices, pharmacies can effectively prevent sensitive data from falling into the wrong hands. This includes medical records, social security numbers, addresses and more. If compromised, this data can lead to identity theft or other forms of exploitation.

• Improving Storage Efficiency

Shredding helps free up storage space. Every record has a designated retention period; after which it must be destroyed. This practice not only reduces the risk of information being lost or stolen but also eliminates unnecessary files, creating more usable space. As pharmacies continually add new patients and records, it’s essential to consistently make room for them.

• Protects a Pharmacy’s Reputation

Following proper shredding guidelines helps preserve a pharmacy’s integrity and credibility in the face of a breach. Pharmacies who don’t follow shredding guidelines face severe reputational damage if confidential information is compromised.

How Do HIPPA-Compliant Shredding Programs Work?

To ensure the secure destruction of documents and media, pharmacies must adhere to stringent policies that encompass collection, staging, transport, processing and disposal. Here are some services and programs that help pharmacies properly dispose of sensitive documents.⁵

1. Secure Bin Rotation Programs

Bin rotation programs offer secure, locked collection containers for sensitive document disposal at customer locations. These containers can be emptied and their contents destroyed on a set schedule.

2. On-Demand, On-Site Secure Shredding Programs

On-demand, on-site shredding programs ensure the documented and auditable destruction of highly confidential materials. A Certificate of Disposal is issued for the entire on-site destruction and disposal process to meet reporting regulations.

3. Inventory Shredding Programs

Inventory managed in offsite business records management facilities is also subject to HIPAA guidelines. Document shredding and computer destruction at offsite facilities reclaim valuable space while ensuring compliance with relevant regulations.

Innovatix Can Help

Innovatix provides members access to a range of suppliers who specialize in document storage and disposal services to help pharmacies maintain HIPAA compliance. Our suppliers, including NRC, Shred America, and Stericycle, offer comprehensive solutions such as onsite and offsite shredding, removal of confidential paper and related files, destruction, offsite storage and temporary secured document storage units. Available products include secured/locked bags, bins, trash cans, offsite storage boxes, and totes, ensuring your pharmacy’s sensitive information is handled with the utmost security.

Contact us to learn how our shredding contracts can safeguard your pharmacy and ensure the security of your patients’ information.