The Administrative Simplification regulations of the Health Information Portability and Accountability Act became effective October 16, 2000. Compliance is mandated within 24 months of these standards being passed. This new law requires strict security measures to protect the electronic health data of patients. As a result, the policies and procedures associated with the practice of healthcare will change dramatically. It is imperative that nurse executives be aware of these new regulations and become an integral part of the team addressing compliance issues in order to continue providing the best possible care.