7 Tips to Comply with Data Privacy Laws in Your Medical Practice

When you’re running a medical practice, you’re likely juggling countless, competing priorities – patient care, treatment plans, staffing, safety. But what about data privacy? The consequences of a data breach can be severe, from loss of patient trust and legal penalties, to devastating long-term damage to your reputation. Are you confident your practice isn’t unintentionally exposing itself to serious risk?  

For medical practices, data privacy cannot be an afterthought – it’s mission critical for protecting patient confidence, supporting compliance and keeping sensitive information secure. And it’s more than implementing the right policies. It’s about ensuring policies and best practices are understood, followed and prioritised by all team members.  

Australian healthcare providers are responsible for complying with the Privacy Act 1988 and My Health Record regulations for protection of sensitive information and digital health records, yet many practices unknowingly put patient data at risk.  

Let’s explore key challenges and gaps that can lead to serious breaches, and essential tips for  reducing regulatory risks.  

The Most Common Data Privacy Mistakes for Medical Practices  

Without proper guidance, it’s understandable many medical practices struggle with data privacy – typically due to a lack of training, understanding and best practices.  

1. Improper Training 

Unfortunately, data privacy tends to be overlooked when training takes a back seat. Let’s consider first, that the people responsible for handling sensitive data, such as practice managers and receptionists, typically don’t receive training in this area.  

2. Missed Processes

If your medical practice has a retention policy that includes information about data collection storage, cleaning, retention, disposal, backup and archiving – that’s a great first step. But without staff awareness and clear procedures, these practices can easily be overlooked.   

3. Inappropriate Data Handling 

There are a few ways staff members may be handling data incorrectly. First, considering email breaches are one of the top attack vectors for cybercriminals, it’s alarming how often medical practices email patient records. Even if you utilise a secure platform, sending data to incorrect email addresses is a significant issue (though authentication measures can help mitigate this risk).  

As another example, many medical staff don't realise images (of patients) are just as sensitive as personal health data. In Australia, while there isn’t a specific law making it illegal to take photos of patients (for instance, during surgery), it's crucial to obtain informed consent beforehand.  

Consider, for instance, a situation where a doctor takes a photo of a patient during a procedure, using a personal mobile device. Without realising the privacy risks, the image may automatically upload to a personal cloud account, which often lacks the necessary security or data protections. Without proper patient consent and security controls in place, even well-meaning actions can result in serious breaches of sensitive health information. 

4. Lack of Data Inventory 

Without data inventory, knowing where and how your data is stored, it’s impossible to secure it. Even if you've put robust protections around your medical software, vulnerabilities can arise elsewhere. For example, if patient data is being emailed or stored in shared accounts without multi-factor authentication (MFA), all your security layers are rendered useless. Tracking and securing all data, across all touchpoints, is essential to preventing potential breaches. 

The good news: many medical practices are starting to take data privacy more seriously. While this positive mindset shift is slowly starting to ripple throughout the industry, there’s more you can do to fully embrace a proactive approach to privacy in your practice.  

Essential Tips to Support Compliance for Your Medical Practice  

To stay on the right path towards compliance, here are our best practice recommendations for building a stronger privacy framework. 

1. Develop a Comprehensive Privacy Policy

Create a clear, concise policy that outlines your practices for data collection, use, disclosure and storage. Be sure to obtain explicit patient consent for data collection and use. Most importantly, ensure that your privacy policy is easily accessible and understandable to your patients. 

2. Implement Strong Security Measures (Physical, Technical & Administrative) 

To protect sensitive data, establish strong security measures across three key areas.  

Physical Security:  

• Ensure any physical patient records are stored securely in locked cabinets with restricted access. 
• Does your practice have visitor staff or contractors? Maintain proper documentation to avoid unauthorised access (e.g. swipe cards, controlled access to sensitive areas, visitor ID badges). Vet visitors thoroughly and ensure they’re always accompanied by authorised personnel. You may also like to consider implementing CCTV to monitor sensitive areas. 

Technical Security: 

• Use strong access controls, including strong passwords and multi-factor authentication (MFA). 
• Encrypt all electronic patient data and maintain regular backups. 
• Implement firewalls and antivirus software to protect against cyber threats. 

Administrative Security: 

• Conduct regular risk assessments and security audits to identify vulnerabilities. 
• Train all staff on data privacy policies and procedures (more on this to follow). 
• Establish clear data handling protocols, including a data breach response plan for all of your employees. 

Feeling unsure about how to implement these practices? Find out more about how IT services can help with compliance in your medical practice.  

3. Prioritise Staff Training 

Given we touched on challenges surrounding lack of training, providing training (from administrative staff to medical practitioners alike) is incredibly worthwhile. Empower your team with knowledge, awareness, skills and confidence to protect patient data. Ensure every member of your team understand your practice’s privacy policies, how to handle data properly and why it needs to be a priority.   

4. Respect Patient Rights

Of course, patient trust and care are at the heart of what you do. So it’s important to extend this care to data privacy matters too. Ensure your patients can easily access and correct their medical records. Respect their requests to limit the use or disclosure of their information. 

Supporting compliance is most effective when you keep the human element in mind! Discover how to put people first with Privacy Act compliance.  

An important note on pseudonyms: Patients have the right to use pseudonyms under the Privacy Act. Be sure you have processes in place to verify the identity of individuals (such as through health identifiers) requesting access to medical records, including those using a pseudonym.  

5. Maintain Accurate, Up-to-Date Records

Similar to the above, keep patient information accurate, complete and current. What’s the best way to do this? Consider standardising your data entry processes, such as through templates and prefilled forms to reduce errors. Implement a review or quality assurance system to double-check records and establish clear procedures for correcting errors. You may even benefit from utilising software that flags discrepancies.  

Patient portals, for instance, are a great way to enable patients to update their information directly and keep their records up to date. 

6. Obtain and Document Informed Consent

Ensure patients are fully informed about how their data will be used and disclosed, particularly when they first join your practice. Going forward, continue to obtain and record consent if new uses arise (for example, sharing data with third parties).

As new technologies such as Artificial Intelligence (AI) are introduced into healthcare practices — for example, AI transcription services or diagnostic support tools — it is crucial to be transparent with patients about how their data is being used. General consent to collect and store information may not automatically cover secondary uses involving AI. Ensure you obtain specific, informed consent for any AI processes that collect, process, or generate patient data. This includes informing patients about the purpose, risks, and safeguards in place. Clear communication helps patients make informed choices and supports compliance with your obligations under the Privacy Act. 

7. Minimise Data Collection

Understandably, medical practices want to gather as much information as possible to make accurate health decisions – but what’s truly necessary? Collecting extraneous or sensitive information (such as religion or personal preferences, unrelated to care), may not be needed and can put unnecessary information at risk in the event of a breach.  

Beyond minimising the amount of information collected, it's equally important to regularly review the data you already hold. Retaining unnecessary personal information can expose your practice to increased risks in the event of a breach. Establish clear data retention policies that specify how long different types of patient information should be kept, in line with legal and regulatory requirements. Once data is no longer required, ensure it is securely destroyed or de-identified, according to your documented policies. Proper de-identification helps reduce privacy risks while maintaining compliance, and supports an overall data minimisation strategy by ensuring your practice only holds what is absolutely necessary.  

Strive for continuous improvement by regularly revalidating your processes and systems. 

The benefits of prioritising data privacy go far beyond ticking boxes. It’s a powerful strategy for strengthening patient trust, organisational security and the overall success of your practice. By implementing these best practices, you’re also being more proactive in supporting compliance. The time to act is now. It’s never too late to start strengthening your privacy measures.  

Want to take the stress out of data privacy for your practice? Find out more and enquire about our cyber security services.