Final answer:
It is false that a healthcare provider who does not engage in electronic transactions is exempt from HIPAA standards, as they must still protect PHI and follow the Privacy and Security Rules.
Step-by-step explanation:
If a healthcare provider engages in none of the identified electronic transactions, it is false that they are not required to comply with HIPAA standards. The Health Insurance Portability and Accountability Act (HIPAA) sets the standard for protecting sensitive patient data.
Any provider that deals with Protected Health Information (PHI) must ensure that all the required physical, network, and process security measures are in place and followed. Even if a provider does not conduct electronic transactions that HIPAA covers, they still may need to comply with other aspects of the regulations, such as the Privacy Rule and the Security Rule, if they handle PHI in any form.