Can EHRs and HIEs get along with HIPAA security requirements?

For Enloe Medical Center in California, a good-faith effort to self-report a breach in the privacy of a patient's medical record resulted in a six-figure fine imposed by a state regulatory agency. Hospitals face a "catch-22" situation in responding to the conflicting mandates of developing electronic health records that allow information sharing across institutions versus ensuring absolute protection and security of patients' individual health information. Some industry analysts suggest that the sanctions for security breaches such as the one experienced by Enloe will have the unintended effect of discouraging self-reporting of breaches.