HIPAA was passed in 1996 to protect patient privacy and confidentiality. It requires industry standards be followed for electronic health information and billing processes. Failure to comply can result in civil or criminal penalties. Patient confidentiality is important to build trust in the physician-patient relationship and encourage patients to seek care honestly. Confidentiality can be breached if necessary to report legal issues or protect others, but otherwise privacy is a basic right in healthcare that providers are ethically and legally obligated to uphold.