Chapter 7 Federal Statutes and Regulations That Impact Healthcare 131 Copyright Goodheart-Willcox Co., Inc. Because an expansion in the exchange of electronic protected health information (e-PHI) is expected, the HITECH Act also widens the scope of privacy and security protections available under HIPAA. The act also increases the potential legal liability for non-compliance with its rules. The HITECH Act increases civil penalties for willful neglect and expands the reach of HIPAA’s data privacy and security requirements. These requirements now apply to the business associates of those enti- ties that are subject to HIPAA. Business associates include accounting firms, billing agencies, law firms, or other companies that provide ser- vices to HIPAA-covered entities.