HIPAA-Aligned AI Infrastructure

PHI that never
leaves your building.
AI that actually works.

Standard ChatGPT, Claude, and Gemini are not HIPAA compliant — and using them with patient data is a violation. eRacks builds on-premise AI servers for healthcare organizations where inference runs entirely on your hardware, with no external data transmission.

Trusted by medical practices, specialty clinics, and health systems across the United States.

PHI Data Path Comparison
ChatGPT / Claude (consumer) PHI sent to external servers · no BAA · used for model training
!
Enterprise cloud AI (with BAA) PHI transmitted externally · vendor custody · BAA required · audit complexity
eRacks on-premise AI server PHI never leaves your network · no vendor BAA needed · full audit logs
Full disk encryption (AES-256) Data at rest encrypted · HIPAA Security Rule §164.312(a)(2)(iv)
Immutable audit logging All AI interactions logged · OCR audit-ready · RBAC enforced
⚠️
HHS Reminder: Using public AI tools (ChatGPT, Gemini, standard Claude) with PHI is a HIPAA violation. These tools do not sign BAAs, use inputs for model training, and reserve the right to disclose data to third parties. HIPAA civil penalties reach $50,000 per violation. Criminal penalties for knowing violations include imprisonment. On-premise AI eliminates the risk at the architectural level — PHI never transmits.
Why architecture matters

Where does your patient data go
when you use AI?

The compliance answer depends entirely on where inference happens. Here's the difference between cloud AI and on-premise.

⚠ Cloud AI with PHI — Risky Path
1
Clinician types patient notes or PHI into AI chat interface
2
Data leaves your network — transmitted to vendor's servers (OpenAI, Google, Anthropic)
3
Inference runs on vendor hardware — PHI is in third-party custody
4
Without enterprise BAA: HIPAA violation. With BAA: residual risk, audit complexity, ongoing vendor dependency
✓ eRacks On-Premise — Compliant Path
1
Clinician types patient notes into Open WebUI on their browser
2
Request stays inside your network — routed to your eRacks server on your LAN
3
Inference runs on your GPU — no external transmission, no third-party custody
4
Response delivered. PHI never left the building. Interaction logged for audit trail.
Clinical + administrative use cases

What healthcare organizations use
on-premise AI for

eRacks healthcare customers run these workflows on their AI servers — privately, compliantly, and without API subscriptions.

📋
Clinical Documentation

Draft SOAP notes, progress notes, discharge summaries, and referral letters. Summarize encounter transcripts into structured EHR-ready formats.

📬
Prior Authorization

Generate clinically accurate prior auth letters from patient records. Reduce administrative time from 45 minutes to under 5 minutes per request.

🔍
ICD-10 / CPT Coding Assistance

Suggest billing codes from clinical notes. Reduce coding errors and improve reimbursement accuracy without sending records to external services.

📚
Internal Knowledge Base

Query your own clinical protocols, formularies, staff handbooks, and policies through a private RAG pipeline — instant answers, zero data leakage.

📊
Patient Intake Summarization

Summarize intake forms, medical histories, and screening questionnaires before the provider encounter. Save 10–15 minutes of chart review per patient.

🎓
Staff Training & Q&A

Give clinical and administrative staff a private Q&A tool trained on your protocols, compliance guidelines, and HIPAA training materials.

Pre-configured healthcare setup

What eRacks ships to healthcare organizations

Every eRacks healthcare AI server ships with HIPAA-aligned configuration, tested and documented.

Recommended Configuration — Healthcare Tier
Form factor2U Rackmount (data room) or desktop
CPUAMD Threadripper Pro / EPYC
GPU1–2× RTX 4000 Ada SFF or RTX 6000 Ada
RAM256–512GB DDR5 ECC
StorageNVMe + SATA RAID (models + records)
Network10GbE (LAN only; no external access required)
Starting at$8,995
Pre-Installed Software Stack
OSUbuntu 24.04 LTS (hardened)
Inference runtimeOllama — local LLM management
User interfaceOpen WebUI — browser-based chat
EncryptionFull disk AES-256 (LUKS)
Audit loggingAll interactions logged, tamper-evident
Access controlRBAC — role-based user permissions
Default modelLlama 3.3 70B or Mistral (configurable)
HIPAA & compliance questions

What compliance teams ask
before purchasing

Does an on-premise AI server eliminate the need for a BAA?

Yes — in the architecturally important sense. A Business Associate Agreement is required when a vendor receives, maintains, or transmits PHI on your behalf. When an eRacks server runs inference entirely within your own infrastructure, no vendor ever touches your PHI. There is no covered relationship to document. Your compliance team should verify this assessment for your specific implementation, but the fundamental data-sovereignty argument is clear: what never leaves your building cannot be disclosed by a third party.

Can we use standard ChatGPT or Claude with patient notes?

No. Standard (consumer and individual-paid-tier) ChatGPT, Claude, Gemini, and similar tools are not HIPAA compliant. Their privacy policies permit using inputs for model training and disclosing data to government authorities. Inputting PHI into these tools is a HIPAA Privacy and Security Rule violation. Enterprise versions with signed BAAs change some of the risk profile but still involve PHI leaving your network and entering vendor custody. On-premise eliminates the exposure entirely.

What logging does the server provide for HIPAA audits?

eRacks configures every healthcare AI server with tamper-evident audit logging covering: user login/logout events, all AI query submissions (timestamp, user ID, model used), system access attempts, and configuration changes. Logs are stored locally in append-only format. We document the logging architecture for inclusion in your HIPAA risk analysis and can configure log forwarding to your existing SIEM. OCR audits require demonstrating that access to ePHI is tracked — this configuration satisfies §164.312(b).

What if our practice has no dedicated IT staff?

The eRacks healthcare configuration is designed for low IT overhead. Clinical staff access the AI through a browser — it looks like a chat application, requires no training beyond a 5-minute orientation, and needs no technical knowledge to use. Administration tasks (adding users, pulling new models) are minimal and documented. We provide full setup documentation and can provide remote onboarding support. Many of our healthcare customers manage the server themselves with a monthly check-in from their general IT vendor.

Can the AI be trained or fine-tuned on our clinical data?

Yes — and this is where on-premise provides a unique advantage. You can fine-tune open-weight models on your own clinical documentation, protocols, and specialty-specific terminology entirely on your hardware. Your training data never leaves your network. This produces a model that understands your practice's language, documentation style, and patient population — something no cloud provider can match. We recommend starting with the base Llama or Mistral model and evaluating fine-tuning as a second phase once the team is comfortable with the system.

Important: eRacks provides infrastructure, not legal or compliance advice. This page describes technical architecture that supports HIPAA compliance goals. Healthcare organizations should conduct their own risk analysis and consult with a qualified HIPAA compliance professional or healthcare attorney before implementing any AI system that processes PHI.
Ready to eliminate the PHI risk?

Built for your practice.
Compliant from day one.

Tell us your practice size, specialty, and primary use case. We'll spec the right configuration and provide a full quote — typically within one business day.