Does your solution process protected health information (PHI) or any data covered by the Health Insurance Portability and Accountability Act (HIPAA)?

This question is asking whether your software solution handles or processes Protected Health Information (PHI), which is a specific category of sensitive health data that is protected under the Health Insurance Portability and Accountability Act (HIPAA). PHI includes any individually identifiable health information, such as medical records, treatment information, insurance details, or any health data that can be linked to a specific individual. This could include obvious identifiers like patient names and medical record numbers, but also less obvious data like appointment dates when combined with other information. This question is being asked in a security assessment because handling PHI triggers specific legal and regulatory requirements under HIPAA. Organizations that handle PHI are considered "covered entities" or "business associates" and must implement specific security controls, breach notification procedures, and data protection measures. The organization conducting the assessment needs to know if your solution falls under these requirements because it affects the level of security scrutiny needed and may require additional contractual agreements (like a Business Associate Agreement). When answering this question, you should be honest and thorough. If your solution handles any health information that could be tied to individuals, even indirectly or temporarily, you should answer "yes." If you're unsure, it's better to err on the side of caution and answer "yes" with an explanation of the specific data elements you process. The guidance specifically mentions that you should answer "yes" even if the PHI handling is done via a third party that your solution integrates with.