From: Daniel Chaskin, DPM
Running Large Language Models (LLMs) locally through Ollama or LM Studio have become the gold standard approach for independent clinics, hospitals, and medical software developers building clinical charting and billing tools.
Because medical data is governed by strict privacy laws like HIPAA, sending patient data to a third-party cloud API (like OpenAI or Anthropic) introduces significant legal, security, and compliance liabilities. Running models locally via Ollama or LM Studio completely eliminates this risk by processing patient notes entirely on-premise, with zero data leaving the clinic's local network.
Daniel Chaskin, DPM, North Bellmore, NY
Editor’s comment: PM News does not provide legal advice. Using the free or plus versions of ChatGPT does not ensure HIPAA compliance because it does not allow for Business Associate Agreements (BAA). The Enterprise and Developer Tools (ChatGPT Enterprise/API) version does allow for BAAs.
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