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DATA BREACH RESULTS IN 
$4.8M HIPAA SETTLEMENT 
Participants have a fundamental right under 
HIPAA’s privacy rules to receive their protected 
health information (PHI). It is the responsibility 
of covered entities to protect that information; 
something that may be especially dicult in 
this technology age. 
Recently, two health care entities 
(covered entities) learned just how 
dicult when they agreed to the 
largest settlement to date for 
charges that they failed to secure 
the electronic PHI (ePHI) for 
thousands of patients. 
$4.8M 
settlement 
In September 2010, the two covered entities filed a joint breach report 
regarding the disclosure of ePHI of 6,800 individuals. 
The investigation revealed 
the breach was caused 
when a physician attempted 
to deactivate a personally-owned 
computer server on 
the network that contained a 
patient’s ePHI. 
Lacking technical safeguards, 
the server deactivation 
caused the ePHI to be 
accessible on the Internet. 
The investigation revealed 
that no eort was made 
prior to the breach to assure 
the servers were secure and 
had software protections. 
Both entities agreed to a corrective plan, which all employers would be 
well advised to review: 
Undertake a risk 
analysis 
Develop a risk 
management plan 
Revise policies 
and procedures 
Train sta Review progress 
copyright 2014

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$4.8m HIPAA Breach

  • 1. DATA BREACH RESULTS IN $4.8M HIPAA SETTLEMENT Participants have a fundamental right under HIPAA’s privacy rules to receive their protected health information (PHI). It is the responsibility of covered entities to protect that information; something that may be especially dicult in this technology age. Recently, two health care entities (covered entities) learned just how dicult when they agreed to the largest settlement to date for charges that they failed to secure the electronic PHI (ePHI) for thousands of patients. $4.8M settlement In September 2010, the two covered entities filed a joint breach report regarding the disclosure of ePHI of 6,800 individuals. The investigation revealed the breach was caused when a physician attempted to deactivate a personally-owned computer server on the network that contained a patient’s ePHI. Lacking technical safeguards, the server deactivation caused the ePHI to be accessible on the Internet. The investigation revealed that no eort was made prior to the breach to assure the servers were secure and had software protections. Both entities agreed to a corrective plan, which all employers would be well advised to review: Undertake a risk analysis Develop a risk management plan Revise policies and procedures Train sta Review progress copyright 2014