Standards for Privacy of Individually Identifiable Health Information. Final Privacy Rule Preamble.. Section 164.514(f) - Fundraising


We proposed in the NPRM to require covered entities to obtain authorization from an individual in order to use the individual's protected health information for fundraising activities.

As noted in § 164.501, in the final rule we define fundraising on behalf of a covered entity to be a health care operation. In § 164.514, we permit a covered entity to use protected health information without individual authorization for fundraising on behalf of itself, provided that it limits the information that it uses to demographic information about the individual and the dates that it has provided service to the individual (see the § 164.501 discussion of "health care operations"). In addition, we require fundraising materials to explain how the individual may opt out of any further fundraising communications, and covered entities are required to honor such requests. We permit a covered entity to disclose the limited protected health information to a business associate for fundraising on its own behalf. We also permit a covered entity to disclose the information to an institutionally related foundation.

By "institutionally related foundation," we mean a foundation that qualifies as a nonprofit charitable foundation under sec. 501(c)(3) of the Internal Revenue Code and that has in its charter statement of charitable purposes an explicit linkage to the covered entity. An institutionally related foundation may, as explicitly stated in its charter, support the covered entity as well as other covered entities or health care providers in its community. For example, a covered hospital may disclose for fundraising on its own behalf the specified protected health information to a nonprofit foundation established for the specific purpose of raising funds for the hospital or to a foundation that has as its mission the support of the members of a particular hospital chain that includes the covered hospital. The term does not include an organization with a general charitable purpose, such as to support research about or to provide treatment for certain diseases, that may give money to a covered entity, because its charitable purpose is not specific to the covered entity.