Final answer:
Discussing a patient's diagnosis in a public setting such as an elevator is a violation of HIPAA, which demands strict confidentiality of patient records to protect their privacy rights.
Step-by-step explanation:
Two employees discussing a patient diagnosis on a hospital elevator with other people present is a violation of HIPAA, the Health Insurance Portability and Accountability Act. This federal law, enacted in 1996, mandates that all healthcare providers and businesses handling health information must ensure the confidentiality of patient records. Open discussions like the one described could lead to unauthorized disclosure of patient information, which is strictly prohibited. The ethical principle at stake is the patient's right to privacy, which generally holds precedence over other considerations in healthcare settings.
It is also important to note that certain exceptions exist, such as cases that involve public health concerns where disclosure might be necessary. However, these exceptions are strictly regulated and should follow established protocols to ensure minimal violation of individual rights. Overall, professionals in healthcare are obligated to be vigilant about protecting patient privacy in all circumstances, including informal settings such as hospital elevators.