Healthcare Practices & AI Data Licensing: Admin Data, HIPAA Safe Harbor & What's Off-Limits
A healthcare practice can license only records with no protected health information: HR workflows, IT tickets, vendor and facilities management, internal training and policies. Clinical notes, claims, scheduling and patient messages are PHI, and HIPAA treats disclosing PHI for payment as a sale requiring each patient's authorization. Mode's medical minimum is 10 employees; scoping decides everything.
Why would AI buyers want a medical practice's data?
Healthcare administration is labor-heavy desk work: intake, scheduling, insurance verification, prior authorizations, coding, billing follow-up and credentialing. AI developers building agents for office work want examples of exactly that. Mode's program page groups medical with accounting and finance at a lower headcount minimum than general businesses, which signals buyer interest.
The problem is that nearly every one of those workflows runs on patient information. The demand is for the part of your operation you are least able to share.
Does your practice meet the minimum?
| Source | Medical minimum | Notes |
|---|---|---|
| Mode's program page, viewed Oct 29, 2026 | 10+ (accounting, finance & medical) | Strongest fit: several years of owned records, U.S.-based teams |
| Mode's referral page | 15+ (target) | U.S., Canada, U.K. and Australia only |
| Mode's Oct 13, 2026 release | No medical tier named | 20 general, 10 accounting, 6 law |
Mode's application asks for full-time desk employees separately from non-desk employees. Front-desk, billing and administrative staff are desk employees; how Mode counts clinicians is a question for intake. Confirm the threshold before you invest time in scoping.
Why is PHI off-limits?
Three HIPAA rules close the door on licensing patient records as they sit in your systems.
Selling PHI requires authorization. Under 45 CFR 164.508(a)(4), "a covered entity must obtain an authorization for any disclosure of protected health information which is a sale of protected health information," and the authorization must state that the disclosure will result in payment to the covered entity. Collecting that from every patient whose information appears in your inbox or practice management system isn't realistic.
De-identified data is not PHI, but the bar is specific. HIPAA allows two routes, both in 45 CFR 164.514 and explained in HHS guidance:
| Method | What it requires | Practical fit for workflow data |
|---|---|---|
| Safe Harbor | Remove 18 identifiers of the individual and of relatives, employers and household members, and have no actual knowledge the rest could identify someone | Hard: free-text email and chat leak dates, places and circumstances |
| Expert Determination | A qualified expert documents that re-identification risk is very small | Possible but costly; requires the expert's written analysis |
The 18 Safe Harbor identifiers include names, geographic units smaller than a state, all date elements except year (for dates directly related to an individual), phone and fax numbers, email addresses, Social Security numbers, medical record numbers, health plan beneficiary numbers, account numbers and full-face photos. Free-text messages are where Safe Harbor tends to fail: "the patient we saw Tuesday after the fall at the school" carries no name and may still identify someone.
Who does the de-identifying matters. Mode says it removes sensitive material and transforms identifiers in the agreed copy before onward delivery. That means its staff and tools handle the unfiltered copy first. If that copy contains PHI, Mode would be receiving PHI. That generally requires a business associate agreement and a permitted purpose, and receiving money for the data raises the sale-of-PHI rule above. Ask Mode in writing whether it signs BAAs. The cleaner route is to export nothing containing PHI.
The bar is getting tighter, not looser. The consumer privacy ombudsman's report in the Spirit Airlines data sale cited the Justice Department's view that advances in technology increasingly enable re-identification, according to a docket summary by Stretto. That sale agreement still required certification under the HIPAA standard for any PHI involved.
Does it matter what kind of healthcare organization you are?
Yes. HIPAA's rules attach to the role you play, and the role changes what you can license.
| Organization type | HIPAA role | What that means for a data deal |
|---|---|---|
| Physician, dental, therapy and behavioral health practices that bill insurance electronically | Covered entity | Sale-of-PHI rule applies directly; only non-PHI or properly de-identified records |
| Billing companies, revenue-cycle firms, practice management and IT vendors | Business associate | Your business associate agreements usually limit PHI use to services for the covered entity; client PHI is not yours to license |
| Management services organizations (MSOs) serving practices | Often business associate, sometimes more | Check the management agreement for who owns which records |
| Cash-only or wellness businesses outside HIPAA | Often not covered | State health privacy laws and your own privacy promises still apply |
Business associates face the sharpest version of the problem. A billing company's operational record, its claim follow-up threads, denial workflows and payer calls, is exactly what AI buyers want, and almost all of it is made of its clients' PHI. Under the HIPAA rules, a business associate may use PHI only as its agreement with the covered entity permits. Licensing it for the business associate's own revenue is not a use those agreements normally allow. What remains licensable is the same narrow set any company has: internal HR, IT, vendor and training records.
Group practices owned by private equity or managed through an MSO should also confirm which entity owns the systems before anyone signs. Mode says it reviews "ownership and access terms" before making an offer, and a split between the practice and the management company is exactly the kind of issue that slows a deal or shrinks it.
What administrative data is realistically licensable?
"Admin" describes a function, not a privacy status. Sort by whether the system can hold patient information.
| System or record | Likely status | Why |
|---|---|---|
| HR onboarding, credentialing workflow for staff, policy manuals | Candidate | Practice-owned; check staff personal data |
| Internal IT help-desk tickets | Candidate with review | Tickets often paste screenshots of the EHR |
| Vendor, supply and facilities management | Candidate | Operational, no patients |
| Internal training materials and SOPs the practice wrote | Candidate | Remove example cases built from real patients |
| Practice's own accounts payable and general ledger | Candidate with review | Separate from patient accounts |
| Staff chat (Teams, Slack) | Case by case | Clinical and scheduling chatter mixes in |
| Scheduling and appointment systems | Exclude | Ties a person to care |
| Billing, claims, remittances, prior authorizations | Exclude | PHI by definition |
| EHR, clinical notes, lab results, imaging | Exclude | Core PHI |
| Patient portal messages, call recordings, fax inboxes | Exclude | PHI throughout |
That leaves a smaller, cleaner asset. It may still be worth licensing for a practice with years of well-documented operations, but it is not the record buyers most want.
What other rules apply?
- State health privacy laws. Several states impose medical confidentiality rules stricter than HIPAA. Your counsel should check the states you operate in.
- Substance use disorder records. Federally assisted SUD programs are covered by 42 CFR Part 2, which has its own disclosure limits.
- Employee data. California employees' personal information has been fully covered by the CCPA since January 1, 2023, per the California Privacy Protection Agency. Emory law professor Ifeoma Ajunwa told Business Insider that whether employee consent extends to a sale is "an ethically gray area."
- Payer and vendor contracts. Payer agreements, EHR licenses and clearinghouse contracts may restrict how data from those systems is used or who owns it.
What could a practice be paid?
No public figure is specific to healthcare. The attributed ranges:
| Source | Range |
|---|---|
| Mode's program page headline, Oct 29, 2026 | "Your company's data could be worth $100K–$5M" |
| Dan Novaes, The LFG Show | "a couple hundred thousand all the way to $5 million" |
| Business Insider, on Micro1 | $100,000 to $2 million for midsize companies |
Mode says its calculator "is illustrative, not a guaranteed offer." It reviews the systems and dates in scope, years of history, record volume and quality, and ownership terms before making a fixed offer. Removing every PHI-bearing system takes out most of a practice's record volume, so expect a narrower scope to price below headcount-based estimates. Our methodology explains how the estimate below is built.
Estimate your range
Choose your industry and enter your full-time office headcount. You'll get an illustrative range and the arithmetic behind it, line by line. It is not an offer. How the estimate works
How does the process run?
| Stage | Mode's description | Practice action |
|---|---|---|
| Initial estimate | Based on size and systems | List only non-PHI systems as candidates |
| Letter of intent | 14-day nonbinding LOI, one 7-day extension at Mode's request | Send proposed scope to your privacy officer and HIPAA counsel |
| Scope approval | You approve systems and date ranges before export; no passwords handed over | Confirm in writing that no PHI-bearing system is included |
| Collection and de-identification | 15–30 days after accepting the final offer | Request sample output and the filtering method |
| Payment | Release: "approximately 60 days"; program FAQ: about three months from first call | Confirm in the signed agreement |
Our process guide covers each stage.
What should a practice administrator check before signing?
- A written scope that names every included system and states that none contains PHI.
- A HIPAA review by your privacy officer and counsel, including your notice of privacy practices.
- Mode's position on BAAs and on how it would handle PHI found in an export.
- Filtering evidence. Mode's release says it built its own PII-removal tools after other vendors would not let it audit theirs. Ask for documentation. No one can honestly promise data is fully anonymous; see our explainer on de-identified versus anonymized data.
- Insurance. Dan Novaes said Mode was "working on" a third-party insurance policy for potential data leaks. Ask whether it exists.
- Staff notice before anything is exported.
Our risk checklist covers each point in more depth, and our valuation guide explains what drives offers.
Who are we?
DataLicensingAudit is an independent referral partner of Mode. If your practice signs after we introduce it, Mode may pay us a referral fee; your payment does not change. See our disclosure. We are not HIPAA counsel and do not give legal advice. Talk to your counsel and privacy officer.
Frequently asked questions
Can a medical practice license its data to AI companies?
Only data that contains no protected health information, or PHI that has been properly de-identified under HIPAA before it leaves your control. In practice that means the practice's own administrative operations: HR, IT tickets, vendor management, internal training and policies. Clinical records, claims, scheduling and patient messages carry PHI. HIPAA treats disclosing PHI for payment as a sale requiring each patient's written authorization.
How many employees does a medical practice need for Mode's BizBuyData program?
Mode's program page, viewed October 29, 2026, lists 10 or more employees for accounting, finance and medical. Mode's referral page lists 15 or more as a minimum target for medical, and the October 13 release did not name a medical tier. Confirm which figure applies to your practice during intake.
What is the HIPAA Safe Harbor de-identification method?
Safe Harbor, in 45 CFR 164.514(b)(2), treats health information as de-identified if 18 listed identifiers of the individual and of relatives, employers and household members are removed, and the covered entity has no actual knowledge that the remaining information could identify someone. Identifiers include names, small geographic units, most date elements, phone numbers, email addresses and medical record numbers.
Is scheduling or billing data considered administrative data that we can license?
No. Appointment schedules, claims, remittances, prior authorizations and patient balances tie a person to health care or payment for it, which makes them PHI. Administrative in function does not mean free of PHI. Keep those systems out of scope unless your HIPAA counsel approves a de-identification approach completed before any disclosure for payment.
How much could a healthcare practice's data be worth?
There is no published medical-specific figure. Mode's program page headline says a company's data could be worth $100K to $5M, and Dan Novaes described a couple hundred thousand to $5 million on The LFG Show. A scope limited to non-PHI administrative records could price lower. Mode says its calculator is illustrative and offers are not guaranteed.
Would Mode need to sign a business associate agreement?
If any PHI would reach Mode, even for de-identification, HIPAA generally requires a business associate agreement, and the disclosure still has to be permitted. Ask Mode in writing whether it signs BAAs and how it handles PHI. The simpler path is to export nothing that contains PHI. Your HIPAA privacy officer and counsel should make that call.
Sources
- HHS: Guidance Regarding Methods for De-identification of PHI
- 45 CFR 164.514 (eCFR)
- 45 CFR 164.508 (eCFR)
- 42 CFR Part 2 (eCFR)
- Mode.Inc: BizBuyData program page (viewed Oct 29, 2026)
- Mode.Inc: Referrals page (viewed Oct 29, 2026)
- Business Wire: Mode.Inc launches BizBuyData.com (Oct 13, 2026)
- The LFG Show: AI Companies Want To Learn How Your Team Works ft. Dan Novaes (Oct 17, 2026)
- Business Insider: AI labs are fueling a wild market for your Slack DMs (Oct 13, 2026)
- Stretto / chapter11cases: The Spirit Airlines deidentified data sale (Sep 13, 2026)
- California Privacy Protection Agency: FAQ