HIPAA stands for Health Insurance Portability and Accountability Act. HIPAA Compliance is the guideline process which shield entities need to protect and secure a patient's healthcare data or Protected Health Information.
HIPAA is important because it ensures healthcare providers, health plans, healthcare clearinghouses, and business associates of HIPAA-covered entities must implement multiple safeguards to protect sensitive personal and health information of the stakeholders.
HIPAA comprises three areas of compliance: technical, administrative, and physical.