Final answer:
Veterinary hospitals are not subject to HIPAA rules because HIPAA is designed to protect human health information, not animals. However, they may have their own set of privacy practices.
Step-by-step explanation:
The correct answer to the question 'Veterinary Hospitals ______ subject to HIPAA rules' is option (a) Are. However, this is actually a bit of a trick question. While one might think that veterinary hospitals are subject to HIPAA (Health Insurance Portability and Accountability Act) rules, the reality is that HIPAA rules do not apply to veterinary hospitals because HIPAA is designed to protect the privacy of human health information, not animals. Veterinary hospitals are therefore not legally required to follow HIPAA. Instead, they may follow different privacy practices that are specific to veterinary care. The question presents an opportunity to understand the scope of HIPAA and its application in healthcare.