The HIPAA Transactions and Code Set rules are meant to bring standardization in the electronic exchange of patient-identifiable health related information. On the basis of Electronic Data Interchange (EDI) standards, the transactions and code set rules permit information exchange from computer to computer without any human intervention. Implementing transactions and code set rules is a major business process reengineering which involves complex and expensive undertakings. The standards offer a rapid improvement in the quality of service provided.