On Thursday, a new rule was proposed by the Federal Government as per which, there could be unreasonable fines for the U. S. companies that partner with hospitals and other health providers if any private information of the patient is disclosed.

Generally, entities like Billing companies, customer service contractors and other businesses regularly handle private health records, but they can’t breach private information such as a patient's medical or payment history. As per the new rule, these companies will be treated the same as doctors, hospitals and insurance companies and will be entitled for fines.

The summaries of all major breaches will soon be put online, as announced by the Department of Health and Human Services.

The maximum civil penalties are $50,000 per violation, and $1.5 million a year.

McAndrew, Deputy Director for health information at the HHS Office of Civil Rights, stated that there have been a number of complaints over the years from business associates who lost their health information.

Obama administration has come up with a significant move to update and streamline the medical records system in the United States. Under the HITECH act, doctors and hospitals are encouraged to adopt electronic health records.

The rule announced on Thursday widens the scope of the Health Insurance Portability and Accountability Act, or HIPAA, which protects a patient’s privacy and sets security standards for electronic health records.