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Preparing for New HIPAA Cybersecurity Rules: What Practices Must Do Now for Safe AI Use

HIPAA’s Security Rule is about to get its biggest update in years – and it’s coming at a time when medical and dental practices are adopting AI faster than ever. For Florida practices, that means two realities collide: new federal cybersecurity requirements and the growing risks of shadow AI.

Here’s how to get ahead of both – without slowing your practice down.

1. Understand the New HIPAA Security Updates

The proposed changes from HHS include:

  • Stronger vendor oversight (especially third-party tech partners)

  • Mandatory security inventories for all systems handling patient data

  • Multi-factor authentication for all users accessing ePHI

  • Formal incident response planning

If you’re already using AI tools, these updates mean you’ll need documented policies showing how you secure and govern them.

2. Audit Your AI Use - Before Regulators Do

Start by identifying all the AI tools in your workflow.
This isn’t just obvious apps like ChatGPT. It includes:

  • EHR “smart” features

  • Imaging software with automated analysis

  • Scheduling or billing tools with predictive features

Ask your vendors:

  • “Do you process or store PHI?”

  • “Do you train your AI on our data?”

  • “Do you sign a HIPAA-compliant BAA?”

3. Put an AI Usage Policy in Writing

Without clear guardrails, staff will test AI however they see fit – which can easily lead to HIPAA violations.

Your policy should cover:

  • Approved AI tools and vendors

  • Prohibited uses (e.g., uploading PHI into non-compliant tools)

  • Required clinical review of any AI-generated notes or recommendations

4. Strengthen Authentication and Encryption

Under the proposed rules, multi-factor authentication (MFA) won’t be optional – it will be standard.
Also confirm:

  • All AI-enabled tools encrypt data in transit and at rest

  • You can track who accessed what data, and when

5. Update Your Incident Response Plan

AI-related breaches are rising – from phishing emails that look like trusted AI tools to manipulated AI outputs.

Your plan should outline:

  • How you’ll detect, isolate, and investigate a breach

  • How to notify patients and regulators within required timelines

  • The role your MSP or IT partner will play in recovery

6. Train Staff on Shadow AI

Even the best policy fails if your team doesn’t understand it.
Training should:

  • Explain what “shadow AI” is and why it’s risky

  • Give real-world examples of unsafe AI use

  • Teach how to spot phishing attempts pretending to be AI platforms

Final Word: Compliance Is Easier With the Right Partner

The new HIPAA security updates are about more than passing an audit – they’re about protecting the trust you’ve built with patients.
With the right MSP, you can:

  • Keep AI tools compliant and secure

  • Build policies that meet the new rules

  • Train your team without slowing your day-to-day workflow

Bottom line: AI can help your practice do more with less – but only if it’s backed by strong cybersecurity and a compliance strategy built for healthcare.

Jeffrey Martin

Fractional CTO

Jeffrey Martin leads technology strategy at NerdSquad, where he helps small and mid-sized businesses run IT that actually works. He and his team handle managed IT, zero trust cybersecurity, endpoint detection and response, secure backup and compliance, Microsoft 365, business phone systems, and fractional CTO leadership for companies that need senior guidance without a full-time hire. Before technology consulting, Jeffrey built a career in insurance and investment advisory, which gave him a practical read on how regulated industries operate. That shapes his approach: compliance and efficiency are compatible goals, and the right solution fits a business's actual size and budget.

He works with medical and dental practices, financial firms, law offices, and contractors across Southwest Florida and nationwide. Jeffrey holds a degree from Emory University and is based in Naples, Florida.

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