$800,000 HIPAA Fine – Blatant Violations Continue To Occur

Are there still folks who have so little awareness of HIPAA that they could go out and dump patient records like these folks? Unfortunately, even five years after this event, we hear current stories of patient records blowing out of dumpsters. Look for fines of this type to escalate rapidly, just as other HIPAA fines have sky-rocketed in recent cases, as a warning to others to take HIPAA restrictions seriously.

The OCR reports: $800,000 HIPAA settlement in medical records dumping case

Parkview Health System, Inc. has agreed to settle potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy Rule with the U.S. Department of Health and Human Services Office for Civil Rights (OCR). Parkview will pay $800,000 and adopt a corrective action plan to address deficiencies in its HIPAA compliance program. Parkview is a nonprofit health care system that provides community-based health care services to individuals in northeast Indiana and northwest Ohio.

OCR opened an investigation after receiving a complaint from a retiring physician alleging that Parkview had violated the HIPAA Privacy Rule. In September 2008, Parkview took custody of medical records pertaining to approximately 5,000 to 8,000 patients while assisting the retiring physician to transition her patients to new providers, and while considering the possibility of purchasing some of the physician’s practice. On June 4, 2009, Parkview employees, with notice that the physician was not at home, left 71 cardboard boxes of these medical records unattended and accessible to unauthorized persons on the driveway of the physician’s home, within 20 feet of the public road and a short distance away from a heavily trafficked public shopping venue.

As a covered entity under the HIPAA Privacy Rule, Parkview must appropriately and reasonably safeguard all protected health information in its possession, from the time it is acquired through its disposition.

All too often we receive complaints of records being discarded or transferred in a manner that puts patient information at risk,” said Christina Heide, acting deputy director of health information privacy at OCR. “It is imperative that HIPAA covered entities and their business associates protect patient information during its transfer and disposal.

Parkview cooperated with OCR throughout its investigation. In addition to the $800,000 resolution amount, the settlement includes a corrective action plan requiring Parkview to revise their policies and procedures, train staff, and provide an implementation report to OCR.

OCR offers helpful FAQs concerning HIPAA and the disposal of protected health information: http://www.hhs.gov/ocr/privacy/hipaa/enforcement/examples/disposalfaqs.pdf

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.