What action must a healthcare provider take if they encounter a breach of PHI?

When a healthcare provider encounters a breach of protected health information (PHI), they are legally required to notify affected individuals and report the breach to the Department of Health and Human Services (HHS). This obligation stems from the Health Insurance Portability and Accountability Act (HIPAA) Breach Notification Rule, which mandates timely and effective communication regarding breaches to those whose information has been affected.

Notifying the affected individuals allows them to take necessary precautions to protect their own information, such as monitoring for identity theft or other repercussions of the breach. Reporting to HHS serves to ensure regulatory oversight and helps identify trends or systemic issues that may require wider enforcement actions or policy changes to improve privacy protections.

This proactive approach is pivotal in maintaining trust in the healthcare system and ensuring that the rights of individuals regarding their health information are safeguarded. The other options, which suggest ignoring the issue or only discussing it internally, neglect the accountability that healthcare providers have in managing PHI and responding to breaches in a responsible and lawful manner.