The correct answer is 'True' because organizations in the medical sector are bound by the Health Insurance Portability and Accountability Act (the full title for HIPAA), which is a federal law. This act requires the implementation of various administrative, physical, and technical safeguards to protect sensitive patient health information. Adhering to these standards is not optional; it's enforced by law, with significant implications for non-compliance, including financial penalties and reputational damage.