Do Tech Giants Violate HIPAA by Tracking Trends?

The Social Dilemma of Health (SDoH).

In March 2018, the world was shocked when it became public knowledge that Cambridge Analytica, a company based in the United Kingdom, had used data from Facebook to impact the presidential election in the United States. It turned out that they had also provided data to the groups supporting Brexit in the U.K.

It should not be a surprise that Facebook had shared data on its users for profit. Facebook said they allowed some access to Cambridge Analytica, but the company had used survey questions to hack into Facebook data, in a manner not intended by Facebook. I am dubious about this claim. The old saying in technology is that if the product is free, then the user is the product. 

The business models of Facebook, Twitter, Instagram, and TikTok are similar in that the service to users is free. Companies that wish to advertise on these platforms get the benefit of placing the user’s eyeballs on screens where advertisements are seen. 

First, advertisers get access to the age, race, sex, and lots of other demographic information on the people that click on the advertisers’ “landing pages” from the social media platform. This is the information companies get when you simply access their site. 

Media companies like Facebook also know what social groups you joined and, critically, with whom you are connected. They create user “profiles” with various amounts of sensitive data. 

In the case of Cambridge Analytica, they obtained 87 million Facebook user profiles. Included with these profiles were Facebook pages each user “liked.” Also included in the profiles were the user’s date of birth and location.     

In the case of Google, in exchange for answering users’ Internet searches, the company has information not just on what was searched for, but in many cases, on every location users have been, sometime for years.

Let’s go back to our first observation about social media companies. Users are the product. While Facebook apologized for the Cambridge Analytica breach, what they didn’t say was that they had stopped collecting and selling this data in some fashion.    

In the case of healthcare, I ask the question: does having data, even if it is saved in grouped data, violate the Health Insurance Portability and Accountability Act (HIPAA)? If the manufacturer of a drug used to treat hemophilia knows the number of people searching for its drug by ZIP code, directly or indirectly, does this violate at least the spirit of HIPAA? 

I understand that Facebook and Google hope you believe that they do not maintain data at an individual level. They say that the data they sell to advertisers excludes individual data. I would argue that by simply reviewing enough of the data they sell, advertisers could match data to individuals. This is how collection companies perform “skip tracing:” finding people to collect unpaid accounts. 

I think it is time to look at how much data technology companies have that may constitute a violation of HIPAA. I also think it is time not to consider just individual data, but how data summarized into grouped data may violate HIPAA.  

Facebook
Twitter
LinkedIn

Timothy Powell, CPA, CHCP

Timothy Powell is a nationally recognized expert on regulatory matters, including the False Claims Act, Zone Program Integrity Contractor (ZPIC) audits, and U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG) compliance. He is a member of the RACmonitor editorial board and a national correspondent for Monitor Mondays.

Related Stories

Where is the OCR?

The articles describe a significant 2026 dispute over the misuse of health information exchanged by asserting a treatment purpose through Carequality. (Raths) The core allegation

Read More

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

AI, Audits, and the Future of the Revenue Cycle

Artificial intelligence is rapidly transforming healthcare revenue cycle operations, from coding and auditing to compliance and denials. Join industry leaders Pam Warren (MaineHealth) and Raemarie Jimenez (AAPC) for a live fireside chat exploring how AI is changing workflows, workforce roles, payer-provider dynamics, and compliance risk—and what organizations should be doing now to prepare.

June 17, 2026

Trending News

Featured Webcasts

Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules – Part 2

Medicare regulations are complex and even seasoned professionals struggle to apply them consistently. Due to overwhelming demand, Dr. Hirsch returns for Part 2 of Ask Dr. Hirsch: Clarifying Medicare’s Most Misunderstood Rules to answer even more of Medicare’s most misunderstood questions, covering inpatient status, observation, SNF access, Medicare Advantage denials, and more. Join Dr. Hirsch as he provides clear, referenced answers to real-world questions submitted by your peers, helping you navigate Medicare compliance with confidence and clarity.

June 18, 2026

Reengineering Utilization Management: Building an Adaptive Model for the New Payer Era

Traditional utilization management models can no longer keep pace with regulatory shifts, payer scrutiny, and operational pressures. In this webcast, Tiffany Ferguson, LMSW, CMAC, ACM, ACPA-C, introduces an Adaptive Model strategy that modernizes UM through role specialization, technology-driven workflows, and proactive, team-based processes. Attendees will learn how to restructure programs to improve efficiency, strengthen clinical collaboration, and enhance financial performance in a rapidly changing healthcare environment.

May 20, 2026

Compliance for the Inpatient Psychiatric Facility (IPF-PPS): Minimizing Federal Audit Findings by Strengthening Best Practices

Federal auditors are intensifying their focus on inpatient psychiatric facilities, using advanced data analytics to spotlight outliers and pursue high‑dollar repayments. In this high‑impact webcast, Michael Calahan, PA, MBA, Compliance Officer and V.P., Hospital & Physician Compliance, breaks down what regulators are really targeting in IPF-PPS admissions, documentation, treatment and discharge planning. Attendees will learn practical steps to tighten processes, avoid common audit triggers and protect reimbursement and reduce the risk of multimillion-dollar repayment demands.

April 9, 2026

Mastering MDM for Accurate Professional Fee Coding

In this timely session, Stacey Shillito, CDIP, CPMA, CCS, CCS-P, CPEDC, COPC, breaks down the complexities of Medical Decision Making (MDM) documentation so providers can confidently capture the true complexity of their care. Attendees will learn practical, efficient strategies to ensure documentation aligns with current E/M guidelines, supports accurate coding, and reduces audit risk, all without adding to charting time.

March 31, 2026

Trending News

Celebrate Lab Week with MedLearn! Sign up to win one year of our Laboratory All Access Pass! Click here to learn more →

Have a Medicare regulation question you’d love Dr. Hirsch to answer? Now is your chance! CLICK HERE to learn more→

Happy National Doctor’s Day! Learn how to get a complimentary webcast on ‘Decoding Social Admissions’ as a token of our heartfelt appreciation! Click here to learn more →

This Memorial Day, we honor those who gave all for our freedom. Take 20% off sitewide through May 29 with code MEMORIAL26 at checkout

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 1 with code CYBER25

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24