Record Storage Benefits

Motivation to Outsource Record Storage

The typical reasons companies and institutions look for a new off-site, professional records storage company can be broken down into one of these topics.

EXISTING RELATIONSHIP WITH MULTINATIONAL STORAGE COMPANY: Many companies are tired of the lack of service they get from the large, multinational storage company. There is reported to be very little sense of the true attitude of service. There are also what seem to be arbitrary (and often) rate increases. So, you experience this and want to change. Watch out for the excessive exit fees. You may feel like they are holding your boxes hostage and you have to pay the ransom to get them back.

SECURITY: The various laws state that you have to take all measures to keep your confidential documents protected. That means they are not available to just anyone who happens to be in your office. If your documents are just setting in file cabinets where anyone can view them, then you may not be complying with the various privacy protection laws. Who should you fear having access to your confidential files? Any of the following could cause you harm.

Disgruntled employees
Contractors (whom you have done no background checks on)
Custodial personnel (in the offices often alone at night)
Customers who may have access to your offices where files may be stored

SPACE: Sooner or later, most businesses run out of space for storage. When that happens, you have to move, or somehow acquire more space. Why not place your confidential historical files off-site with a professional records storage company. It is much cheaper than moving and is almost always cheaper than acquiring the extra space if available without moving.

DISASTER PROTECTION: Hurricane Katrina ruined many businesses because it ruined their historical files. The disaster damage was very evident in the medical field. Medical charts were destroyed for active patients. The data from various tests could not be recovered and had to be performed again when possible. However, the historical data was gone for good. Do you have in house fire protection that is not water based?

Privacy of Confidential Infomation

Various laws have been enacted to protect the privacy of personal information. The increase in Identity Theft crime has caused the enactment of many of these laws. Various states have also enacted laws, starting with the states of California, Wisconsin and Georgia.

The most famous of the laws is HIPAA, enacted to protect the privacy of patient information.

HIPAA

Health Insurance Portability and Accountability Act (HIPAA), was enacted in 1996 and includes provisions intended to safeguard the privacy of patient health records. HIPAA is a significant piece of legislation with onerous penalties. For a full text of the SUMMARY OF THE HIPAA PRIVACY RULE from the Department of Human Services, available online go to: http://www.hhs.gov/ocr/privacysummary.rtf. See page 16 of this document in regards to specifically "securing records under lock and key.…and limiting access….."

Data Safeguards. A covered entity must maintain reasonable and appropriate administrative, technical, and physical safeguards to prevent intentional or unintentional use or disclosure of protected health information in violation of the Privacy Rule and to limit its incidental use and disclosure pursuant to otherwise permitted or required use or disclosure. For example, such safeguards might include shredding documents containing protected health information before discarding them, securing medical records with lock and key or pass code, and limiting access to keys or pass codes.

.HIPAA LINKS

PENALTIES FOR HIPAA VIOLATIONS:
http://www.utmb.edu/compliance/hipaa/hipaa-overview.htm#penalties

American Medical Association
http://www.ama-assn.org/ama/pub/category/11805.html

GLB (Gramm Leach Bliley)

Gramm Leach Bliley (GLB) is another federal law with a much broader scope than HIPAA. The broad standards outlined in this law were designed to compel financial institutions to "respect the privacy of its customers and to protect the security and confidentiality of those customers' non-public personal information." Specifically, this law requires protection against "unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer." See page 1, section (b) (3) of Section 501 of the Conference Report and Text of Gramm-Leach-Bliley Bill published by the Senate Banking Committee.

GLB LINKS

Senate Banking Committee
http://banking.senate.gov/conf/confrpt.htm

Federal Trade Commission
http://business.ftc.gov/privacy-and-security/gramm-leach-bliley-act

FACTA

The Fair and Accurate Credit Transactions Act of 2003 also known as the FACT Act was signed into law on December 4, 2003. In general, the Act amends the Fair Credit Reporting Act (``FCRA''). The Act contains a number of provisions intended to combat consumer fraud and related crimes, including identity theft, and to assist its victims

The Disposal Rule of FACTA, as proposed, requires entities covered by the rule to take "reasonable measures" to protect against unauthorized access to or use of information.

FACTA LINKS

Federal Trade Commission
http://www.ftc.gov/os/statutes/fcrajump.shtm

Privacy Rights Organization
http://privacyrights.com/ar/FTC-DocDisposal.htm

What Documents Should Be Stored

Contract with a Record Storage Company in order to protect your confidential records. Do not leave your records where disgruntled employees, contractors, vendors and others not authorized to have access to such records. Various State and Federal Laws mandate that you protect private information.

In order to be compliant with the various state and federal laws and protect yourself, stockholders, employees, and customers/patients, you should protect all confidential and outdated material.

Any document, which contains confidential material (designs, proposals, plans, and drafts of such information.).
Any document which could be used for the purpose of identity theft (social security numbers, customer lists, credit applications, tax returns, etc).
Any document which could cause harm in the hands of criminals or competitors (canceled checks, price lists, business plans, credit card numbers)
Any document which is mandated to be protected by your state laws or the federal laws such as HIPAA (medical), GRAMM LEACH BLILEY (financial) and FACTA (personal credit) records.

Click on these links to learn more about each of the governing laws. However, at this time, there are much more severe laws enacted at the state level.

HIPAA	HIPAA
GLB	GLB
FACTA	FACTA

Record Storage Companies of America