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The Price of Delay: A Costly HIPAA Lesson

December 2, 2024

 

Over a million dollars in HIPAA fines have been levied in the past few months, and like this winter’s snow, the fines continue to pile up, with a $100,000 fine recently announced. 

Last week, Rio Hondo Community Mental Health Center, an outpatient program managed by the Los Angeles Department of Health, was fined for a Right of Access violation. 

This marks the 51st enforcement of the Right of Access rule, highlighting the importance of handling patient records in a timely manner. 

 

What Happened?

A patient requested a copy of their records on March 18, 2020. 

As we all know, March 2020 was marked by the beginning of the unprecedented COVID-19 virus, which led to the mental health center’s closure after the Governor of California put into action a “stay-at-home” order. 

However, the center reopened at the beginning of May 2020, allowing some staff to return to the facility. While the patient was told her records would be ready at this time, she was misinformed and began the summer with a flurry of calls and other forms of contact to request her medical records. 

After her requests were unfulfilled several times, the patient filed a complaint with the Office for Civil Rights (OCR) at the end of August 2020. 

The OCR then began investigating the Rio Hondo at the beginning of October. The medical records were finally sent on October 20, 2020, 216 days after the first request. 

The Right of Access rule requires Covered Entities to provide patients with their medical records within 30 days of the initial request. 

While the medical center was under a “stay-at-home” order during those 30 days, this was still significantly longer than the extension period of an additional 30 days and could have been handled when it was first deemed safe for staff to return to the medical center. 

This fine comes after a series of Right of Access fines, including another significant fine of $70,000 imposed at the end of October. The numerous fines issued this past year regarding the Right of Access initiative demonstrate the government’s commitment to this important aspect of patients’ rights. 

 

Protect Your Practice from Costly Mistakes

Even during the peak of the global health crisis, HIPAA regulations stayed in effect. Implementing software solutions can help safeguard your practice. 

To ensure your staff remains compliant, it is highly recommended to use automated software that keeps you and your team in check, regardless of the circumstances.

Schedule a consultation today to learn more about automated compliance for your practice. 

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$700K HIPAA Settlement: What the Ambry Genetics Phishing Breach Teaches Every Practice

September 21, 2026 Penelope Schweitzer No comments yet

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Right of Access Enforcement Hits Eye Care: Inside the Azul Vision Settlement

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August 5, 2026 The latest HIPAA fine is another clear reminder that ransomware attacks are, unfortunately, here to stay in the healthcare industry. A settlement involving the OSF Healthcare System was recently announced by the Office for Civil Rights (OCR). As an enterprise healthcare provider in the midwest, the organization serves 174 locations, including 16 hospitals – a prime target for a ransomware attack.    So, what happened?  In April 2021, OSF discovered that they joined the unlucky club of ransomware victims when a malicious actor deployed Nephilim, a ransomware strain made to target larger organizations. Once the ransomware infected OSF systems, the hacker demanded payment or patient Protected Health Information (PHI) would be leaked online. In this attack, sensitive information like financial account information, driver’s license numbers, medical record numbers, and more, were all exposed. Over 53,000 patient records were exposed in this attack.  When ransomware attacks in healthcare have soared 278% in recent years, it’s more of a when then an if your organization doesn’t have the right safeguards in place.  While the breach was discovered in April, OSF healthcare reported the breach to the OCR in October. The OCR took it from there, digging into what precautions (or lack thereof) let this happen.  What did the OCR discover? If you’ve read any of our other fine breakdowns, you already know where this is going: another missing Security Risk Analysis (SRA).  The SRA is a required document every HIPAA-regulated entity (ie: every practice and their Business Associates that handle patient information) needs to complete. The SRA is a thorough review of the physical, technical, and administrative safeguards in place to prevent PHI ending up in the wrong hands. While the OCR didn’t specify exactly how the ransomware got into OSF’s system, a technical safeguard vulnerability was very likely the entry point. A proactive SRA could have flagged that gap before it turned into a major breach. In addition to missing this required documentation, OSF also took too long to report the breach to the OCR and notify affected patients. This is a direct violation of the Breach Notification Rule, which requires organizations to notify patients within 60 days of a discovered breach. Moreover, since the breach impacted more than 500 patients, OSF was also required to report this breach to the OCR within 2 months as well. Time is of the essence in every component of a breach, from securing systems to ensuring affected parties are aware to protect themselves and an over five month delay was unacceptable in the eyes of the OCR.    What was the result?  OSF’s settlement tops the list as the largest fine of the year, coming in at $552,250, plus government monitoring for the next two years.  It’s very important to note that this breach occurred in 2021, meaning that over five years were spent from the initial breach, to investigations, to the public press releases. Also, the average cost of a healthcare breach is over 7 million dollars –  from implementing secure systems, notifying patients, legal fees, and more. The Takeaway While the settlement payment and Corrective Action Plan (CAP) are just the cherries on top, this experience was a tremendous cost of time, money, and resources, highlighting the importance of making sure everything is secure before a situation occurs.  So, when was the last time you looked at your SRA? It’s time to seriously analyze your current compliance posture. Ransomware groups don’t check whether you’re a small dental office or a 16-hospital health system before they attack, they check whether the door was left open. Time and again, OCR’s findings come back to the same root cause: organizations can’t secure what they haven’t even identified as a problem. Looking to review your current compliance standings? Meet with our team of experts for a complimentary educational consultation. 

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