What must be included in the privacy practice notice?

The privacy practice notice is a critical document that informs patients about their rights and the obligations of the healthcare provider regarding the protection of their personal health information (PHI). Including an explanation of the covered entity's obligations in this notice is essential as it outlines how the entity will use and disclose PHI, ensure its confidentiality, and comply with applicable privacy laws, such as the Health Insurance Portability and Accountability Act (HIPAA).

This explanation helps patients understand how their information will be handled, what their rights are regarding their health information, and how to file complaints if they believe their rights are being violated.

The other options provided do not align with the required content of a privacy practice notice. For instance, a list of individuals who have accessed PHI could violate confidentiality principles and is not required in the notice. Similarly, discussing a compensation policy for privacy breaches or detailing healthcare costs associated with privacy is not standard practice and does not serve the purpose of informing patients about their rights and the entity's obligations. Thus, focusing on the covered entity's obligations is essential for transparency and compliance with legal standards in patient information privacy.