Final answer:
A Notice of Privacy Practices (NPP) is a document that explains to patients how their PHI may be used and disclosed.
Step-by-step explanation:
A document that explains to patients how his or her PHI (Protected Health Information) may be used and disclosed is called a Notice of Privacy Practices (NPP). This document is provided to patients by healthcare providers, such as hospitals or clinics, and is required by the Health Insurance Portability and Accountability Act (HIPAA). The NPP informs patients about their rights regarding the privacy of their healthcare information and how their information may be used for treatment, payment, and healthcare operations.