Implement custom Azure Policy definitions to enforce encryption for PHI stored in Azure SQL Database and Azure Storage, and manually review compliance reports.

Assign built-in Azure Policy initiatives to the organization's resource groups to enforce HIPAA security rules, such as access control and audit logging, and integrate with Azure Monitor for alerts on non-compliance.

Deploy Azure Virtual Networks for all services processing PHI to ensure secure communication, and use Azure Security Center for vulnerability assessments.

Configure Azure Policy to automatically remediate non-compliant resources and use Azure Security Center for continuous monitoring and compliance reporting.