At TxtSquad, we work with clinics, pharmacies, and health systems every day. Whether you're exploring simple patient texting for the first time or knee-deep in digital transformation, ready to deploy AI agents to do your digital bidding, the jargon can pile up fast—HIPAA, 10DLC, PHI, RCS… what does it all mean?
This glossary breaks down the essential terms related to healthcare communication including texting and phone systems, AI agents, privacy and security regulations, and patient engagement tech—so you can confidently navigate your digital communications.
Privacy, Compliance & Security
Access Controls:
Security measures that limit access to systems or data based on user roles, ensuring only authorized individuals can view or modify sensitive information.
Audit Trail:
A log of all actions taken within a system—who accessed what, when, and what changes were made. Essential for compliance and investigating breaches.
Authentication:
The process of verifying a user’s identity, typically using passwords, PINs, or biometric methods like fingerprint or face ID.
Authorization:
Determines what a verified user is allowed to do—such as view, edit, or delete certain data.
BAA (Business Associate Agreement):
A contract required under HIPAA between a covered entity and any third-party vendor (like TxtSquad) that handles PHI on their behalf.
CASL (Canada’s Anti-Spam Legislation):
Canadian law that regulates the sending of commercial electronic messages. Organizations must have consent (explicit or implied) to text or email individuals for promotional purposes. Healthcare often qualifies for implied consent, but compliance is still key.
Covered Entity:
Under HIPAA, this refers to organizations like hospitals, doctors’ offices, insurers, and others directly involved in patient care or billing.
Custodian:
The individual or organization responsible for storing and safeguarding health records. In many provinces, healthcare providers are considered custodians.
Data Encryption (at rest and in transit):
Scrambling data so it’s unreadable without the correct key—applies when storing data (at rest) or sending it over the internet (in transit).
Data Minimization:
The principle of collecting and storing only the information necessary for a given purpose, reducing risk if a breach occurs.
De-identification:
The process of removing identifying details from data (like names or health card numbers) so the information is no longer considered PHI or PI.
End-to-End Encryption (E2EE):
A method of encrypting messages so that only the sender and recipient can read them—not even the service provider.
Express Consent:
Explicit permission given by a patient to be contacted (e.g., “Yes, you can text me appointment reminders”). Required in many jurisdictions for non-essential communications.
Firewall:
A security system that monitors and controls incoming and outgoing network traffic to block malicious activity.
HIPAA (Health Insurance Portability and Accountability Act):
A U.S. law that sets national standards for protecting sensitive patient health information. It governs how data is stored, shared, and secured.
Implied Consent:
Assumed permission based on an existing relationship (e.g., ongoing care from a physician). Often used in healthcare contexts but still requires caution with promotional messaging.
Intrusion Detection System (IDS):
Software that monitors networks or systems for signs of unauthorized access or malicious behavior.
Multi-Factor Authentication (MFA):
An added security layer requiring two or more verification methods (e.g., password + text code) to access a system.
Penetration Testing (Pen Testing):
Simulated cyberattacks performed to identify vulnerabilities in a system before a real attacker can exploit them.
PHI (Private Health Information):
Individually identifiable health information about a patient’s condition, treatment, or payment for healthcare. Protecting PHI is central to all privacy laws and policies.
PI (Personal Information):
Broadly refers to any data that can identify a person—names, addresses, health card numbers, etc. PI includes PHI, but also covers information beyond healthcare.
PIPEDA (Personal Information Protection and Electronic Documents Act):
Canada’s federal privacy law for private-sector organizations. It governs how personal information is collected, used, and disclosed.
REB (Research Ethics Board):
A committee that reviews, approves, and monitors research involving humans to ensure ethical standards, particularly around consent and privacy.
Role-Based Access Control (RBAC):
Restricts system access based on users’ job roles—ensuring, for example, that front-desk staff can’t access clinical records.
Secure Messaging:
Text or chat platforms that are encrypted and compliant with healthcare regulations like HIPAA or PIPEDA, often used for provider-to-provider or provider-to-patient communication.
Security Risk Assessment (SRA):
A formal review to identify and evaluate risks to the confidentiality, integrity, and availability of electronic PHI (ePHI).
TFA (Two-Factor Authentication):
A security measure requiring two forms of identity verification before granting access—usually something you know (like a password) and something you have (like a one-time code sent to your phone). TFA helps protect sensitive healthcare systems from unauthorized access.
Tokenization:
Replacing sensitive data (like a credit card number or health ID) with a non-sensitive equivalent or token—used to secure data during processing.
Zero Trust Architecture:
A modern security model where no user or device is trusted by default, even if they are inside the network. Everything must be continuously verified.
Messaging & Phone Systems
10DLC (10-Digit Long Code):
A local 10-digit phone number (e.g., 709-555-1234) used by businesses to send SMS and MMS. These numbers are sanctioned for A2P texting and require registration for compliance.
A2P (Application-to-Person):
Texting initiated by a software platform (like TxtSquad) to individuals, often for appointment reminders, updates, or automated outreach.
Credit (in SMS context):
One 160-character message equals one SMS credit. Longer texts may be split into multiple messages and use more credits.
Keyword (in SMS):
A word or phrase that a user can text to a number to trigger an automated response (e.g., texting “STOP” to opt out, or “APPT” to confirm an appointment).
Landline:
Traditional wired telephone lines, not typically text-enabled unless tegrated with a text-to-landline service.
Latency:
The time delay between sending and delivering a message. Low latency is key for real-time alerts (e.g., prescription ready, emergency closure).
MMS (Multimedia Messaging Service):
Text messages that include images, videos, or audio—great for visual instructions, appointment reminders, or photos of prescriptions.
Opt-in / Opt-out:
Processes by which individuals choose to receive (opt-in) or stop receiving (opt-out) messages. A legal requirement for commercial or marketing communication in many countries.
POTS (Plain Old Telephone Service):
Legacy landline phone systems. Reliable for voice calls, but generally not text-compatible.
RCS (Rich Communication Services):
An advanced messaging protocol meant to replace SMS and MMS. RCS supports read receipts, typing indicators, high-resolution images, file sharing, and interactive buttons—all within the default messaging app on supported devices.
Short Code:
A 5-6 digit number (like 12345) used by large-scale organizations to send high volumes of messages. Great for large health networks but less personal than 10DLC.
SMS (Short Message Service):
Basic text messaging—text-only, 160-character messages.
Throughput:
Refers to the volume of messages that can be sent per second or minute through a phone number (10DLC, short code, or toll-free). Affects delivery speed—important for urgent alerts or large-scale outreach.
Toll-Free Number:
800-series phone numbers that can also send texts but may have slower throughput. These are commonly used for customer support lines.
VoIP (Voice over Internet Protocol):
Phone service delivered over the internet. Many clinics and pharmacies use VoIP systems, which can be text-enabled with the right provider.
Healthcare Tech & AI
AI (Artificial Intelligence):
In healthcare, AI is used to automate conversations, triage patients, summarize voicemails, and improve engagement—like TxtSquad’s AI-powered text and phone agents.
Agent (AI Agent):
A software-based assistant that performs tasks autonomously or semi-autonomously—like answering patient questions, routing messages, or scheduling appointments. TxtSquad's AI Phone and Text Agents are examples.
Chatbot:
A text-based interface that simulates human conversation. Can be rule-based or AI-powered. In healthcare, bots can answer FAQs, collect intake info, or confirm appointments.
Conversational AI:
A type of AI that allows machines to engage in human-like dialogue, often used in text and voice interactions with patients.
EHR (Electronic Health Record):
A digital version of a patient’s full medical history, often shared across providers in a network.
EMR (Electronic Medical Record):
A digital record specific to one provider or clinic—used for diagnosis, treatment, and ongoing care.
FHIR (Fast Healthcare Interoperability Resources):
A standard for exchanging healthcare information electronically. Used to ensure systems like EMRs, EHRs, and apps can “talk” to each other securely and consistently.
Fine-tuning:
A process where a pre-trained AI model is adapted to perform better on a specific task or dataset—like healthcare-specific conversations.
Generative AI:
AI that creates new content—text, images, or even audio—based on prompts. LLMs like GPT-4 fall into this category.
Hallucination (AI):
When an AI generates inaccurate or false information confidently. Especially important to monitor in healthcare settings where accuracy matters.
HIE (Health Information Exchange):
A system that enables the sharing of health-related information between organizations—improving care coordination and efficiency.
Intent Recognition:
The AI’s ability to understand what a user wants or is trying to do (e.g., “cancel my appointment” or “refill my prescription”).
LLM (Large Language Model):
An AI model trained on massive amounts of text data to understand and generate human language. LLMs power advanced tools like TxtSquad's AI Agents.
Machine Learning (ML):
A branch of AI where systems improve their performance over time by learning from data—used in predictive analytics and personalization.
Model (AI Model):
The core mathematical system that processes input and generates output. Different models are trained for different tasks—like answering questions, summarizing messages, or understanding voice input.
NLP (Natural Language Processing):
A subfield of AI that focuses on understanding and generating human language. Essential for tools that read or respond to patient messages.
Patient Engagement Platform:
Technology (like TxtSquad!) used to communicate with patients outside the clinic—via text, phone, or email—for reminders, follow-ups, education, and satisfaction surveys.
PMS (Pharmacy Management System):
Software used by pharmacies to manage prescriptions, patient records, inventory, and billing.
Prompt:
The input (question, message, or command) given to an AI model to generate a response. Prompt design can affect the accuracy and quality of AI output.
Voice Agent (or Virtual Agent):
An AI-powered phone assistant that can answer calls, respond to spoken questions, and route calls appropriately. Helpful for after-hours support or high call volume.
Final Word
Understanding these terms makes it easier to navigate the fast-evolving world of healthcare communication. TxtSquad is built with compliance, privacy, and ease-of-use in mind—so your team can focus on what matters most: patient care.
Whether you're just starting with patient messaging or scaling up across multiple sites, understanding these terms can help you make informed, confident choices.
Want to learn more?
Reach out for a demo or check out our features page to learn more.