True or False: The use of a covered entity's PHI is entirely unrestricted.

The statement is false because the use of a covered entity's Protected Health Information (PHI) is indeed restricted and regulated by laws such as the Health Insurance Portability and Accountability Act (HIPAA). Under HIPAA, covered entities, which include health care providers, health plans, and health care clearinghouses, must strictly adhere to guidelines regarding the handling, sharing, and storage of PHI. The regulations ensure patient information is kept private and secure, allowing the use of PHI only under specific circumstances. These include situations such as obtaining explicit patient consent, fulfilling legal obligations, or when it's necessary for treatment, payment, or health care operations. Without such conditions being met, the use of PHI is not permitted. This framework is established to protect patient privacy rights and maintain the integrity of health information in the healthcare system.