Final answer:
A clearinghouse is the entity that can convert nonstandard data to standard transaction data for HIPAA requirements.
Step-by-step explanation:
The entity that can convert nonstandard data received from payers to standard transaction data to meet HIPAA requirements is called a clearinghouse. A clearinghouse is a third-party organization that receives, translates, and reformats nonstandard electronic healthcare claims and other transactions into standard EDI (Electronic Data Interchange) format. This ensures that all transactions adhere to the HIPAA standards for privacy and security. For example, a healthcare provider may submit a claim to a payer in a nonstandard format, and the clearinghouse will convert it into the standard format before sending it to the payer.