Understanding the Impact of DPDP Rules on Healthcare

Hospitals & Diagnostic Centres Are Now Data Fiduciaries

Under the DPDP framework, healthcare institutions are treated as Data Fiduciaries, responsible for:

• How patient information is collected

• How it is stored and processed

• Who gets access and why

• Safeguarding it against breaches

  
  

Large networks and high-volume diagnostic chains may additionally qualify as Significant Data Fiduciaries, triggering deeper compliance obligations.

Consent Is Now Purpose-Specific

General consent is no longer enough. Healthcare institutions must now ensure:

• Purpose-bound consent (admission, diagnostics, billing, reporting all need clear intent)

• Traceability (who gave consent, when, for what)

• Easy withdrawal (patients can revoke consent anytime)

  
  

Expect major changes in OPD/IPD forms, lab registration flows, and digital consent processes.

Stronger Security Standards

DPDP demands “reasonable security safeguards,” which in healthcare translates to:

• Encryption of medical records, lab results, and images

• Strict role-based access (doctor vs nurse vs billing vs radiology)

• Regular audits of HIS/LIS/PACS

• Incident and breach response workflows

• Monitoring for unauthorized access

  
  

Ransomware attacks on hospitals have increased globally. DPDP makes defense mandatory, not optional.

Data Retention & Erasure Requirements

While medical records must be preserved for medico-legal periods, DPDP emphasizes:

• No indefinite storage

• Timely deletion or anonymization

• Proper retention logs

• Secure disposal protocols

  
  

Hospitals must align DPDP rules with MCI/NABH/NABL norms to avoid conflict.

Children’s Data: Conditional Exemption

DPDP Rules provide limited relief. Healthcare providers may process children’s data without parental consent only when:

• It is essential for treatment

• It directly relates to the child’s health

  
  

But this cannot be used for marketing, profiling, or any secondary purpose.

Operational Compliance Now Mandatory

Healthcare providers must prepare for significant operational shifts:

• Appoint a Data Protection Officer (DPO)

• Conduct Data Protection Impact Assessments (DPIA) for high-risk digital operations

• Publish patient-facing grievance contacts

• Update contracts with third-party processors (cloud, LIS/HIS vendors, call centers)

• Train all clinical and operations staff

  
  

DPDP compliance will likely become a NABH evaluation point in future cycles.

Cross-Border Data Transfers Are Regulated

Labs or hospitals using:

• International cloud servers

• Overseas radiology teleradiology partners

• Global research collaborators

  
  

…must ensure transfers meet DPDP conditions. Compliance clauses in contracts are now essential.

What Healthcare Leaders Should Do Now for Healthcare Data Security

Early Actions

• Map all patient data flows (HIS, LIS, PACS, CRM, website)

• Review consent forms and workflows

• Begin gap assessment for DPDP compliance

  
  

Short-Term Steps

• Upgrade cybersecurity posture

• Train staff on data handling protocols

• Update vendor agreements

  
  

Long-Term Strategies

• Implement consent-management systems

• Establish a privacy governance framework

• Conduct periodic audits

  
  

Data governance must become a board-level agenda for all healthcare businesses.

The DPDP Rules are not just a legal obligation; they represent a cultural shift toward transparency, patient control, and digital ethics. Hospitals and diagnostic centres that act early will not only reduce risk but also earn stronger patient trust.

In conclusion, adapting to the DPDP Rules is essential for healthcare institutions. It is an opportunity to enhance data security and build patient confidence. Embracing these changes will position healthcare providers as leaders in data governance.

Disclaimer:

This article and suggestive interpretation of the DPDP Act is for general informational purposes only and does not constitute legal, regulatory, or professional advice. Readers are advised to verify all information independently and consult qualified legal or compliance professionals before making any decisions or implementing any policies related to data protection or otherwise.

Healthcare organisations must review their specific operational, legal, and regulatory requirements before taking any action and may refer to the Ministry of Electronics and Information Technology Notifications.