Today, OCR announced its largest HIPAA enforcement settlement so far this year. An orthopedic clinic agreed to pay $1.5 million and to adopt a corrective action plan after a 2016 hacking incident that compromised over 200,000 patient records. OCR’s investigation revealed systemic HIPAA Privacy and Security Rule issues. This settlement confirms that HIPAA Security Rule violations remain an important enforcement focus, that post-incident compliance will not excuse pre-incident noncompliance and that seven figure settlements are not reserved just for large hospital systems.
Tag Archives: HIPAA
Today, OCR announced five new settlements under its “HIPAA Right of Access Initiative,” making right of access the most prominent area of HIPAA enforcement so far this year. In 2019, OCR indicated that it would prioritize claims involving individuals’ right to receive timely access to their health records at a reasonable cost under the HIPAA Privacy Rule. And it is making good on its promise. All providers must pay special attention to this issue as patient complaints in this area are high and provider compliance typically is not strong.
HIPAA breaches happen. So long as humans are involved in handling protected health information (PHI), there will be mistakes that result in a breach (and, of course, this does not include hacking incidents or bad actor breaches). For compliance purposes, the response to a breach is key. Providers that respond swiftly, implement corrective measures and timely notify affected patients and file a thorough breach report with the Department of Health and Human Services (DHHS) are far more likely to avoid scrutiny.
Less than one week after its last announced settlement, the Office for Civil Rights announced its first seven-figure HIPAA settlement of 2020. A non-profit healthcare system in Rhode Island, Lifespan, agreed to pay $1,040,000 for alleged systemic HIPAA violations. A 2017 breach involving an unencrypted stolen laptop triggered the investigation. OCR found HIPAA Security Rule violations and the lack of a business associate agreement with its parent corporation, which reported the 2017 breach.
Today, the Office for Civil Rights (OCR) announced a $25,000 settlement with a small federally qualified health center (FQHC) for systemic HIPAA Security Rule violations. Over 9 years ago, the FQHC reported a disclosure of patient information to an unknown email account affecting 1,263 patients. This breach report prompted an investigation revealing a near complete failure to comply with the HIPAA Security Rule.
We learned early in life from the Three Little Pigs that a house made of straw or sticks, while much easier to build, lacks the safety and security of a brick house. This fable’s lesson applies to many scenarios including the recent rapid deployment of telehealth services. While a pandemic, not laziness, caused the hurried telehealth services implementation for many, that’s irrelevant to the big bad wolf (and there is always a big bad wolf). He will come and he will huff, and he will puff, and he will compromise the privacy of patient information in a system without adequate protections.
In guidance issued today, OCR explained that, with a few limitations, healthcare providers may use patient information to contact recovered COVID-19 patients and provide information about donating blood and plasma.
In line with its other Notices of Enforcement Discretion, OCR announced today that it will not enforce HIPAA rules against healthcare providers and their business associates for HIPAA violations that occur during the good faith operation of a community-based COVID-19 specimen collection and testing site, such as a mobile, drive-through or walk-up site.
The CARES Act made important changes to 42 CFR Part 2 rules by aligning use and disclosure rules more closely with HIPAA. This is an important development and will require some operational tweaks by Part 2 Providers such as obtaining initial consent and ensuring the use of a Notice of Privacy Practices.
Late Friday, the Office for Civil Rights (OCR) issued FAQs on telehealth and HIPAA as a follow up to DHHS’ announcement that OCR would use “enforcement discretion” for HIPAA non-compliance related to the good faith roll out of telehealth services during the COVID-19 emergency. The FAQs provide useful information about the types of applications that can be used for telehealth as well as examples of bad faith conduct.