1. Understanding HIPAA Compliance

SharePoint HIPAA compliance image with lock and file folder

What is HIPAA?

HIPAA stands for the Health Insurance Portability and Accountability Act. It is a U.S. law created to protect sensitive patient information, also known as PHI (Protected Health Information).

Covered Entities vs. Business Associates

Covered Entities - These include healthcare providers, health plans, and healthcare clearinghouses. They are the main organizations required to follow HIPAA rules.
Business Associates - These are third-party companies, SharePoint consulting partners, or vendors that handle PHI on behalf of a covered entity. For example, an IT company managing healthcare data is considered a business associate.

Key HIPAA Rules

Privacy Rule - Controls who is allowed to access and share patient data.
Security Rule - Focuses on protecting electronic PHI (ePHI) through safeguards like encryption and access controls.
Breach Notification Rule - Requires organizations to notify affected individuals, regulators, and sometimes the media if a data breach occurs.

2. The Big Question: Is SharePoint HIPAA Compliant?

The short answer is no, SharePoint is not HIPAA compliant out of the box. SharePoint is a tool. By itself, it does not guarantee HIPAA compliance. But when used correctly, it can support compliance. The responsibility to make it compliant lies with the organization that uses it.

Microsoft provides SharePoint with strong security features, such as encryption, access controls, and audit logs. These features can help meet HIPAA requirements. But compliance is not automatic.

The organization must configure SharePoint properly to secure patient data.
Clear policies and procedures must be in place.
Employees must be trained on how to handle PHI correctly.

In other words, Microsoft gives you the secure foundation, but your team must build on it to ensure HIPAA compliance.

3. Business Associate Agreement (BAA)

What is a BAA?

A Business Associate Agreement (BAA) is a legal contract required by HIPAA. It explains how a business associate will handle and protect protected health information (PHI) on behalf of a covered entity. Without a BAA, using a third-party service for PHI would not meet HIPAA requirements.

Microsoft’s Role

Microsoft will sign a BAA for its enterprise cloud services, including SharePoint Online. This step is not optional. It is a must for any healthcare organization or business associate that plans to use SharePoint to store or share PHI. The BAA sets the legal foundation for compliance, but the organization still has to configure SharePoint and follow proper security practices.

4. How to Securely Store PHI in SharePoint

If you plan to store protected health information (PHI) in SharePoint, you must set it up correctly. The platform provides strong security features, but they only work if you use them the right way.

Here are key steps to store PHI securely in SharePoint:

Sign a BAA with Microsoft – This is the first step before using SharePoint for PHI.
Use SharePoint Online, not On-Premises – Microsoft’s cloud version has built-in compliance and security features.
Control Access – Give PHI access only to staff who truly need it. Use role-based permissions and multi-factor authentication.
Enable Encryption – SharePoint encrypts data by default, but make sure encryption is enabled both at rest and in transit.
Monitor and Audit Activity – Turn on audit logs to track who accessed or changed PHI.
Train Employees – SharePoint tools are only as safe as the people using them. Provide HIPAA training for staff.
Use Data Loss Prevention (DLP) – Set up rules that prevent sensitive PHI from being shared outside the organization.
Implement a Data Governance Plan – Define rules for handling PHI, where it can be stored, how long it should be kept, and who manages it. This reduces human error and keeps processes consistent.
Conduct Regular Risk Assessments – HIPAA requires ongoing risk analysis. Review your SharePoint setup often to find and fix vulnerabilities as threats evolve.

By following these steps, you can use SharePoint to store PHI securely while staying on the path to HIPAA compliance.

5. Do’s and Don’t’s of Storing PHI the Right Way

Do’s

Do sign a Business Associate Agreement (BAA) with Microsoft before storing PHI.
Do use SharePoint Online for better compliance features.
Do set role-based permissions and require multi-factor authentication.
Do make sure encryption is enabled for data at rest and in transit.
Do turn on audit logs to track PHI access and activity.
Do provide HIPAA training to all employees handling PHI.
Do configure Data Loss Prevention (DLP) to stop accidental data sharing.

Don’ts

Don’t store PHI in SharePoint without a signed BAA.
Don’t give PHI access to staff who don’t need it.
Don’t ignore security alerts or unusual activity in audit logs.
Don’t assume default SharePoint settings are enough for HIPAA compliance.
Don’t forget to review and update policies regularly.

6. Key Considerations for SharePoint HIPAA Compliance

If you plan to use SharePoint for storing or sharing protected health information (PHI), you must configure it correctly. HIPAA does not automatically make SharePoint compliant. Compliance depends on how you set up and manage the platform.

Here are the key considerations:

Access Controls

Follow the principle of least privilege. Give users access only to the data they need to do their job. Use role-based permissions and multi-factor authentication to strengthen security.
Encryption

Make sure PHI is encrypted both at rest (when stored in SharePoint) and in transit (when shared or accessed over the network). Encryption helps keep sensitive data safe even if unauthorized users gain access.
Auditing and Logging

Enable audit logs to track every action taken on PHI. Regularly review these logs to see who accessed, modified, or deleted data. This helps with accountability and is critical during investigations.
Information Governance

Set up a clear governance plan. Define how PHI is collected, stored, retained, and securely disposed of when no longer needed. This ensures consistent handling of sensitive data.
Business Associate Agreement (BAA)

Before using SharePoint for PHI, you must sign a BAA with Microsoft. Without this, storing PHI in SharePoint would not be HIPAA compliant.
Data Loss Prevention (DLP)

Use DLP policies to stop PHI from being shared outside your organization by mistake. This helps prevent accidental leaks of sensitive information.
Employee Training

SharePoint security features only work if people use them correctly. Train staff on HIPAA rules, security best practices, and how to properly handle PHI within SharePoint.
Regular Risk Assessments

HIPAA requires ongoing risk analysis. Regularly review your SharePoint environment to identify vulnerabilities and apply security updates or fixes.

Also Read: Why Should You Hire a SharePoint Consultant?

7. How Congruent Software can Help Prevent PHI Data Leaks in SharePoint

Data Loss Prevention (DLP)

We help configure DLP policies in SharePoint to automatically detect and block sensitive PHI. This ensures that confidential health information is not shared outside your organization or with unauthorized users.
External Sharing Policie

Our team sets up precise controls for external sharing. This includes managing who can access files, setting link expiration dates, and restricting permissions based on user roles. These measures prevent accidental or intentional PHI leaks.
Security Audits and Monitoring

We conduct regular security audits and vulnerability tests of your SharePoint environment. Continuous monitoring ensures that any unusual activity is quickly identified and addressed.
User Access and Permissions Management

We help define and enforce role-based permissions so only authorized staff can access PHI. Combined with multi-factor authentication, this reduces the risk of unauthorized access.
Employee Training and Awareness

Our services include training your employees on HIPAA best practices and SharePoint security features. A well-informed team is your first line of defense against data leaks.
Encryption and Compliance Checks

We ensure that all PHI in SharePoint is encrypted both at rest and in transit. Additionally, we help you perform periodic compliance checks to confirm that your environment meets HIPAA standards.
Customized Governance Policies

Our experts help implement governance policies tailored to your organization. This defines clear rules for handling, storing, and disposing of PHI safely, reducing human error and reinforcing security.

With the right configuration, policies, and ongoing support, SharePoint can be a secure platform for handling PHI. Partnering with an experienced SharePoint consulting partner ensures compliance, reduces risk, and keeps patient data protected.

Is SharePoint HIPAA Compliant? All you need to know