HIPAA Drives Acquisitions for PHNS

PHNS, which provides IT services to hospitals, has bought a Louisiana provider just two weeks after leasing space in a subterranean data bunker.

Dallas hospital services firm PHNS continues to expand its data center footprint to accommodate growing demand for patient record storage. PHNS announced Tuesday that it has bought Baton Rouge application service provider Network Technology Group (NTG), just two weeks after leasing space at the SpringNet Underground, a data bunker housed in a limestone cave in Missouri.

Network Technology's offsite data backup product complies with federal laws governing patient privacy and medical records, including the Health Insurance Portability and Accountability Act (HIPAA). NTG had been running short of space in its data center at the Lousiana Technology Park, in Baton Rouge, but now its backup application can be used to warehouse data in PHNS' Missouri facility. PHNS manages IT systems for major hospitals throughout the country, and its recent deals to expand its infrastructure illustrate the impact of HIPAA and other data security laws as long-term drivers of data center growth.


Testing the jump capability here.