Impact of Digital Personal Data Protection Bill, 2023 on the Healthcare Sector – ET HealthWorld


by Prasad Nakashe

Data protection has been the focal point of discussion, post the implementation of the General Data Protection Regulation (GDPR) in the European Union 2018. The Personal Data Protection Bill was introduced for the first time in 2019 to address the need for a strong data privacy legislation in India and went through numerous rounds of modifications before being enacted in Lok Sabha as The Digital Personal Data Protection Bill, 2023 (“DPDPB, 2023”).

In an era dominated by technological advancements and digital transformation, the protection of personal data has become a paramount concern. DPDPB, 2023 represents a significant milestone in safeguarding individual privacy in the digital age. This legislation holds immense implications, particularly for the healthcare sector, where the handling of sensitive patient data is of utmost importance. As data breaches and privacy concerns become more prominent, the bill aims to safeguard sensitive information across various industries, including healthcare.

The DPDPB, 2023 seeks to preserve individual privacy rights by regulating the acquisition, storage, and exchange of personal data while emphasizing the importance of processing personal data for authorized purposes. It will not only improve data security and cyber breach control, but it will also increase patient trust and confidence:

  • Data Security: The healthcare sector deals with plethora of sensitive personal data, ranging from medical records and treatment histories to genetic information. DPDPB 2023 is expected to establish stringent guidelines for the collection, storage, and processing of such data. Healthcare providers will need to implement robust data encryption, access controls, and audit trails to ensure the security of patient information. Compliance with these regulations will necessitate investments in advances cybersecurity infrastructure, bolstering the overall resilience of the healthcare sector against cyber threats.
  • Ensuring Patient Privacy: DPDPB, 2023 aims to provide individuals with greater control over their personal data, ensuring that healthcare organizations obtain explicit consent before collecting, processing, or sharing any personal health -related information. This heightened emphasis on data security aligns with the principles of medical ethics and can foster increased patient trust in healthcare systems.
  • Challenges to ensure Compliance: The healthcare sector may encounter challenges in adapting to the stringent compliance requirements. Healthcare providers and organizations will need to invest in robust data management systems, encryption technologies and cybersecurity measures to avoid data breaches and ensure compliance. Additionally, the complexity of obtaining informed consent from patients, especially in emergency medical situations, could potentially slow down critical healthcare process.
  • Digital Innovation: DPDPB 2023 is likely to catalyze innovations in digital health technologies. With clearer regulations and guidelines for data usage, researchers and innovators can harness patient data for medical research and development of personalized treatments. However, striking the right balance between data stylization for innovation and maintaining patient privacy remains a crucial and delicate challenge.
  • Telemedicine and Data Transfer: Telemedicine has witnessed an exponential rise, especially during the global pandemic. The data protection bill could impact how patient data is transferred and stored during telehealth consultations. Healthcare providers and technology platforms offering telemedicine services will need to ensure that data transfers are encrypted and compliant with the bill’s provisions to avoid potential legal repercussions.
  • Cross-border Data Sharing: In an interconnected world, healthcare data often transcends national borders for medical consultations, second opinions, and specialized treatments. The bill’s provisions regarding cross-border data transfers could impact international collaborations and medical tourism. Ensuring seamless data flow while adhering to the bill’s data protection standards will be crucial consideration for healthcare institutions.
  • Empowerment of patients: One of significant outcomes of the DPDPB, 2023 is the empowerment of patients in managing their health data. Individuals gain the right to access their health records, request corrections, and even request the deletion of their data under certain circumstances. This shift in power dynamics encourages patients to take an active role in their healthcare decisions and enhances patient-provider relationships.
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The Digital Personal Data Protection Bill, 2023 is set to revolutionize how personal data, particularly in the healthcare sector, is managed and protected. By prioritizing data security, patient consent, and interoperability, the bill aims to create a more transparent, patient-centric healthcare environment. While challenges will arise during its implementation, the bill’s potential to enhance patient trust, streamline data management and drive healthcare innovation cannot be understated. As the healthcare sector embraces the digital age, the bill’s impact will be instrumental in shaping a more secure and privacy conscious future.Prasad Nakashe, Partner, Deloitte India.

(DISCLAIMER: The views expressed are solely of the author and ETHealthworld does not necessarily subscribe to it. ETHealthwold.com shall not be responsible for any damage caused to any person / organisation directly or indirectly.)

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  • Updated On Aug 30, 2023 at 07:06 AM IST
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  • Published On Aug 30, 2023 at 07:06 AM IST
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  • 4 min read
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