It’s often a good idea to take your time when doing something important to make sure it’s done properly, but when it comes to remedying a data breach, that approach is likely to end with a large fine.
Children's Medical Center of Dallas recently was assessed a $3.2 million civil monetary penalty after years of failing to comply with the Health Insurance Portability and Accountability Act following data breaches in 2010 and 2013.
Children’s even had a chance to request a hearing with the government to argue for a reduced penalty, but failed to act in time.
It’s unusual for the Health and Human Services Office for Civil Rights to resolve this type of behavior with a penalty as opposed to a resolution agreement, Arthur Fried, an attorney with Epstein Becker Green, told me.
said Children’s decision not to challenge the penalty in a hearing or reach a
settlement might have been influenced by a desire to avoid a corrective action
plan, which is usually part of a settlement. Most corrective action plans run
for three years, and require hospitals to work closely with the OCR on fixing
“The hospital might have made the determination to pay the penalty and avoid the corrective action plan so as to avoid having the OCR breathing down their neck for several years,” Fried said.
Scott Summerall, a spokesman for the hospital, told me that Children’s fully cooperated with the OCR investigation into the breaches and has no reason to believe any patients were harmed by the breaches, which involved the loss of electronic devices that contained protected health information.
“We have decided to pay the imposed fine because the efforts to formally contest the claims would be a long and costly distraction from our mission to make life better for children,” Summerall said.
Stay on top of new developments in health law and regulation with a free trial to the Health Law Resource Center.
Learn more about Bloomberg Law and sign up for a free trial.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)