What term describes healthcare providers or organizations that use electronic means to process transactions or transmit PHI and are thus subject to HIPAA?

The correct term for healthcare providers or organizations that use electronic means to process transactions or transmit protected health information (PHI) is covered entities. This designation under HIPAA (Health Insurance Portability and Accountability Act) includes health plans, healthcare clearinghouses, and healthcare providers who transmit any health information in electronic form.

Covered entities have specific obligations to safeguard PHI, ensuring confidentiality and proper handling of sensitive patient information, whether during electronic transactions or in other contexts. This designation is fundamental to HIPAA compliance, as it clearly outlines which organizations are held accountable under the law for protecting patient data.

The other terms listed do not accurately describe entities subject to HIPAA in the context provided. Business associates refer to vendors or individuals who perform services on behalf of covered entities, rather than the entities themselves. Healthcare systems may describe the overall network of care but lack the specific legal context of HIPAA applicability. Protected organizations is not a recognized term in HIPAA regulations.