Advancements in smaller language models enable sophisticated NLP tasks on consumer-grade hardware, like Mistral Small 3 (24B).Local LLMs with Ollama can effectively de-identify PHI from medical texts, eliminating cloud dependency and reducing costs.HIPAA defines 18 types of PHI necessitating removal; local models offer benefits like data control and faster processing.The solution involves using Ollama with Mistral Small 3 to identify and replace PHI elements in text, achieving data consistency.Core components include creating detailed prompts, processing text through Ollama, maintaining mappings, and deidentification.Consistency, validation, performance, and model selection are key practices for successful implementation.Future enhancements may include specialized prompts, confidence scores, and a web interface for simplified text processing.Local LLMs offer a secure solution for healthcare data processing without relying on cloud infrastructure.The approach described can be customized and expanded based on individual requirements, with the code available on GitHub.Qualified personnel should always review de-identified data before use, ensuring accuracy and compliance.