What is HIPAA's main purpose in healthcare?

• A. To regulate funding for hospitals.
• B. To standardize electronic data formats.
• C. To protect patients' privacy and secure the confidentiality of health information.
• D. To govern physician licensure.

Answer: (C)

HIPAA is designed to protect patients' privacy and the confidentiality of health information. It sets rules about who may access PHI, under what circumstances, and how it must be protected, especially for electronic records. It also gives patients rights to access and correct their information and requires covered entities and their business associates to implement safeguards against unauthorized disclosure. While parts of HIPAA address electronic data interchange standards and security measures, the overarching goal is privacy and confidentiality. The other options don’t fit because HIPAA does not fund hospitals, does not license physicians, and standardizing data formats is a related requirement rather than the primary purpose.