Final answer:
The Health Insurance Portability and Accountability Act (HIPAA) of 1996 governs patient privacy and the sharing of patient information, ensuring that health information is confidential and securely handled.
Step-by-step explanation:
The act that governs patient privacy and the sharing of patient information is the Health Insurance Portability and Accountability Act of 1996, commonly known as HIPAA. This act sets the standards for protecting sensitive patient health information and ensures that healthcare providers, insurance companies, and other entities that handle personal health information maintain the confidentiality and security of such data. HIPAA mandates that the sharing of a patient's health information be done in a manner that preserves their privacy rights, preventing unauthorized disclosure of personal health records.