Avoid spending thousands to clean up HIPAA compliance issues. How would your home care agency handle the notification process if you breached HIPAA laws? The Centers for Medicare & Medicaid Services has had to notify 13,775 Medicare beneficiaries that their privacy had been breached (see related story, this page). That process likely cost the agency and/or its contractors well into the six figures -- if not higher -- in employee resources, mailing costs, and legal consulting fees. Even a much smaller breach could put your company into financial disarray, considering the fact that you'd not only want legal advice, but you'd have to begin the notification process. Luckily, you don't have to spend a fortune to comply with the HIPAA rules up-front, which can save you problems down the line. Consider these eight tips to ensure that you're in step with patient privacy. 1. Ensure that each employee has a separate username and password for your computers. Many agencies have one username and password for office staff, but you should have separate accounts for each person. Also, if each employee signs in under his or her own name, you can tell who's altered which files. 2. Unplug all modems whenever someone isn't actively using them. This makes it more challenging to hack into your system. 3. Look at what your business associates are doing. If your software vendor comes in regularly to update the software, make sure you know what this person is actually doing in your office and what he has access to while he's there. 4. Don't just buy an off-the-shelf HIPAA solution. If you do, it won't reflect requirements in your state. And tailoring your own solution may be cheaper than adapting someone else's solution. 5. Choose your employees carefully. In a really small business, with only a few employees, you probably won't set different levels of access to information for different employees. So instead of setting access privileges for each employee, just make sure you hire good and trustworthy people, and evaluate them at the interview stage. 6. Encourage security literacy among your IT staff. Ensure that your staff members are aware of the potential weak areas in an IT system and allow them the training to stay on top of how to close those gaps.