Security & HIPAA
On-premise processing. Your records stay on the appliance. Choose how approved claims reach the clearinghouse.
Security Architecture
Clinical records stay on your practice's hardware. The deployment mode determines how approved claim files and remittances move.
Local Processing
The appliance runs on your practice's own hardware. Coding, scrubbing, and AI inference all happen inside your walls, in every mode.
Records Stay Local
Patient records, clinical notes, and billing history live on the appliance. Only the claim files you approve go out, the same 837P every clearinghouse already requires.
You Own Your Data
No vendor has access to your data without explicit, documented permission. The appliance is yours, physically inside your facility, under your control.
Deployment modes
Compare how approved 837P claims reach the clearinghouse and how 835 remittances return.
Full ModeAir-gappedNothing touches a network. Claims travel on an encrypted USB drive.
- Outbound claims (837P)
- Your administrator exports the 837P to an encrypted USB drive and uploads it to the clearinghouse from a separate internet PC.
- Inbound remittances (835)
- Your administrator downloads the 835 remittance and carries it back in on the same drive.
- Appliance internet exposure
- The appliance has no network path at all.
- Manual steps
- USB export and import, handled by your administrator.
- Best fit
- Practices with the strictest security posture, and sites without reliable connectivity.
Hybrid ModeRecommendedNetwork-isolatedThe appliance never touches the internet. A small relay box does the talking.
- Outbound claims (837P)
- A relay box on your private network forwards each approved 837P to the clearinghouse on a schedule.
- Inbound remittances (835)
- The relay pulls 835 remittances back from the clearinghouse, and the appliance collects them.
- Appliance internet exposure
- The appliance only sees the relay on your private network.
- Manual steps
- Claims and remittances move on their own.
- Best fit
- Full Mode's isolation with Connected Mode's automation.
Unplug the relay and approved claims wait on the appliance. Billing pauses until it returns. The patient record never moves.
Connected ModeFirewall-restrictedThe appliance submits claims itself over one restricted connection.
- Outbound claims (837P)
- The appliance submits the 837P directly to the clearinghouse over a restricted internet connection.
- Inbound remittances (835)
- The appliance pulls 835 remittances directly from the clearinghouse on a schedule.
- Appliance internet exposure
- One firewall-restricted outbound connection to the clearinghouse.
- Manual steps
- Claims and remittances move on their own.
- Best fit
- Lean teams and single-administrator offices that want zero manual steps.
There is no inbound port listening for the outside world.
Why This Matters Now
In February 2024, the Change Healthcare attack exposed 192.7 million patient records and disrupted claims processing for roughly 40% of U.S. healthcare transactions. Practices lost weeks of revenue. Patients had prescriptions delayed. The root cause was architectural: all that data was centralized in cloud infrastructure.
Security FAQs
Common questions from physicians and practice managers about data security, HIPAA compliance, and how Sovereign RCM protects patient information.
See How Sovereign RCM Supports HIPAA Compliance
Compare the deployment modes with your team and choose how approved claims reach the clearinghouse.