Healthcare data agencies must demonstrate:
- Business Associate Agreement (BAA): Legal requirement for handling PHI
- Technical safeguards: Encryption at rest and in transit (AES-256 minimum)
- Administrative safeguards: Workforce training, access controls, incident response
- Physical safeguards: Facility access controls, workstation security
- Audit capabilities: Comprehensive logging of all PHI access
Additional certifications that indicate maturity: HITRUST CSF (gold standard for healthcare), SOC 2 Type II (operational controls), and relevant cloud certifications (AWS Healthcare Competency, Azure for Health).
Red flag: Agencies that claim HIPAA compliance but can't produce a BAA template or explain their specific technical safeguards.