Certified Public Procurement Officer (CPPO) Practice Test

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A university operates a medical center and several non-health business units. It wants HIPAA to apply only to the functions that perform covered activities. What organizational step is most appropriate?

Designate the covered health care components in a documented hybrid-entity structure Treat every university department as a business associate Exclude the medical center from the university legal entity Create a separate Notice of Privacy Practices for every employee

Correct Answer:

Designate the covered health care components in a documented hybrid-entity structure

Explanation:

A legal entity that performs both covered and noncovered functions may designate health care components and operate as a hybrid entity. The designation should be documented so HIPAA requirements are applied to the covered components and appropriate shared functions.

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