Impact of health disclosure laws on health information exchanges

Health information exchanges (HIEs) are expected to facilitate data sharing between healthcare entities, thereby improving the efficiency and quality of care. Privacy concerns have been consistently cited as one of the primary challenges to HIE formation and success. Currently, it is unclear how privacy laws - in particular, legislation restricting the disclosure of health records - have shaped the development of HIEs. This preliminary study explores the landscape of state-level health privacy legislation and examines the impact of variations in such privacy and confidentiality laws on the progress of HIEs. We found that states with stronger privacy laws, limiting the disclosure of health information, had significantly more HIEs exchanging data and had fewer failed HIEs. We suggest that this counterintuitive finding may be explained by the more subtle benefits of such laws, such as increased confidence and trust of participants in an exchange. Other key contributors to this work are Alessandro Acquisti, Rahul Telang, and Julia Adler-Milstein.