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by SkyPuncher 1196 days ago
Your statement is correct, but not complete.

When a covered entity (a HIPAA-required provider) does business with a private non-covered entity _and_ that transaction involves HIPAA controlled information, they must enter into a Business Associate Agreement (BAA). This effectively forces the private entity to maintain the same HIPAA standard as the provider.

A private company is absolutely free to build non-HIPAA compliant software, but they completely unlikely to get any healthcare providers to actually use it.