The landscape of data privacy is shifting dramatically, and the nursing home industry is not exempt. Eight states are set to implement new privacy laws in 2025, creating a complex web of compliance requirements for businesses nationwide, according to legal experts at Fisher Phillips. This surge in legislation signals a growing emphasis on consumer data protection, demanding that organizations, including those in skilled nursing, adapt rapidly.
“2025 is poised to be a landmark year for privacy law enforcement. States are increasingly prioritizing privacy enforcement, with many new laws coming into full effect,” wrote law firm partners Danielle Kays and Monica Snyder Perl. This wave of legislation is designed to “expand consumer rights, impose stricter data governance obligations, and create a complex compliance environment for businesses operating across state lines,” they added.
Delaware, Iowa, Nebraska, and New Hampshire have already seen their new privacy laws take effect on January 1st, with New Jersey following on January 15th. Minnesota and Tennessee’s laws are slated for July 1st, while Maryland’s will come into force on October 1st. This staggered rollout means that nursing homes must remain vigilant and proactive in their compliance efforts throughout the year.
The implications for the nursing home industry are significant. Facilities handle a wealth of sensitive patient data, including medical records, financial information, and personal details. Ensuring the security and privacy of this data is not only a legal obligation but also a matter of ethical responsibility.
A recent study by the Ponemon Institute found that the average cost of a data breach in the healthcare industry is now $10.93 million, the highest of any sector. This statistic underscores the financial and reputational risks associated with non-compliance.
“Organizations that have already invested in robust privacy programs to meet existing regulations (such as CCPA [California Consumer Privacy Act] or GDPR [General Data Protection Regulation]) may find themselves well-positioned. These companies will likely need only incremental adjustments to align with the new state laws, rather than wholesale changes,” Mays and Perl advised.
However, even those with established compliance frameworks must be prepared for increased scrutiny. The attorneys warn of a potential “surge in enforcement actions, mainly focused on the processing of sensitive data and responses to consumer complaints.”
To navigate this evolving regulatory landscape, nursing homes should:
- Conduct thorough audits of their data processing practices.
- Update privacy policies and procedures to align with the new state laws.
- Implement robust security measures to protect sensitive data.
- Provide comprehensive training to staff on data privacy best practices.
- Establish clear protocols for responding to data breaches and consumer inquiries.
By taking a proactive and strategic approach to compliance, nursing homes can mitigate risks, protect patient privacy, and maintain trust in an increasingly regulated environment.