What does the Privacy Rule primarily govern?

The Privacy Rule primarily governs the use and disclosure of Protected Health Information (PHI) by covered entities. This is fundamental to HIPAA, as it establishes national standards for the protection of individuals' medical records and personal health information. The Privacy Rule sets specific guidelines for how healthcare providers, health plans, and other entities that handle health information can use and share PHI, ensuring that patients' privacy is upheld and they have control over their own health information.

While the other options may relate to aspects of healthcare operations, they do not directly address the central focus of the Privacy Rule. For example, the storage of healthcare records, handling of medical equipment, and billing processes are all important components of healthcare management, but they are not the primary concern of the Privacy Rule, which is specifically focused on maintaining the confidentiality and security of patient information.