New York OSH Center Case

Fines, HIPAA

The Price of Neglect: Ransomware Fines Hit Healthcare Practices

November 7, 2024 Penelope Schweitzer No comments yet

November 7, 2024 Healthcare practices felt quite a scare on Halloween, with over half a million dollars in fines levied on medical practices. These practices were fined for not taking the necessary precautions against ransomware breaches. The two practices impacted on this day of significant fines include Plastic Surgery Associates of South Dakota in Sioux Falls (PSASD), a multi-location organization, and the Bryan County Ambulance Authority (BCAA), an Oklahoma emergency medical services provider. PSASD was fined $500,000, and BCAA was fined $90,000. These significant fines are just the precipice of the future of healthcare breaches, with ransomware breaches increasing 264% since 2018. What Happened? Major ransomware attacks unfortunately impacted both of these healthcare providers. For PSASD, a breach was discovered that infected nine workstations and two servers in July 2017. This breach impacted over ten thousand patients, putting their data at risk. The malicious actors utilized trial and error to hack into the organization’s system. The data was unable to be restored. The investigation revealed significant gaps in their compliance program, including a missing Security Risk Analysis, inadequate policies and procedures for data handling and breach reporting, and insufficient training. This $500,000 penalty also includes two years of monitoring by the Office For Civil Rights (OCR). For the BCAA, its ransomware attack began in November 2021, but wasn’t reported until May of the following year. After a breach, depending on the severity, you must notify the OCR within 60 days. Since this breach impacted over 14,000 patients or over 500 people, it is considered a large breach. Similar requirements, such as a Security Risk Analysis, adequate policies, a risk management plan, and other safeguards, were missing as found in this investigation. It’s $90,000 fine includes a Corrective Action Plan as well. Protecting Your Practice from Ransomware Ransomware attacks will continue to affect our healthcare system. Although complete immunity is impossible, there are many precautions you can take to protect your practice. Implementing the right technical safeguards, such as firewalls, antivirus software, and a qualified IT team is crucial. Additionally, you can streamline your HIPAA compliance by using intelligent software solutions that help identify your compliance needs unique to your practice. In the event of an attack, these solutions can also guide you on how to respond effectively. To learn more about these smart solutions, meet with a compliance expert today.

Abyde News, Fines, HIPAA

Expensive Oversight: The Importance of Timely Patient Record Access

October 24, 2024 Penelope Schweitzer No comments yet

October 24, 2024 There has been a flurry of HIPAA fines in the past few weeks, with over half a million dollars levied in the last month. Just one example is Gums Dental Care, LLC, a small dental practice in Maryland that was fined for a Right of Access violation. Right of Access violations, which involve failing to provide medical records in a timely manner, are a common HIPAA mistake. Another violation for this was issued in August. What Happened? A patient requested her medical records from Gums Dental on April 8, 2019. After not receiving them, she issued a complaint to the OCR in May 2019. The OCR contacted Gums Dental Care for technical assistance and believed the case was over. This was just the beginning. This case spanned years, with a second complaint filed in August 2019 and the OCR sending several data requests through letters and calls to Gums Dental. On October 1, 2020, the OCR sent Gums Dental a proposed resolution agreement and corrective action plan. At the end of the month, Dr. Gums wanted to present her case in front of a judge, believing the patient would commit Medicaid fraud with her records. She also said that the complainant didn’t pay a $25 administrative fee to release the medical records through mail. First, patients should always have access to their medical records, regardless of their reasons. Second, the fee would be waived if the patient requested it digitally, not through mail. In December 2020, the OCR issued a Letter of Opportunity to Gums Dental. At the beginning of the next year, Dr. Gums once again justified her refusal to provide the records since she believed her patient would commit a crime with them. She also believed her website wasn’t secure enough to send them digitally. However, Gums Dental didn’t attempt to send the records at all. By the time the Notice of Proposed Determination was sent in March 2022, roughly three years after the first medical record request, Gums Dental faced a Civil Monetary Penalty fine as high as $7,676,692. However, the OCR ultimately levied a $70,000 fine, recognizing the smaller size of the dental practice. How to Protect Your Practice Common HIPAA fines often involve Right of Access violations. At the federal level, practices are required to provide patients with their medical records within 30 days, and some states have an even shorter timeline. Navigating these unique regulations can be challenging, so having an intelligent solution is crucial. Smart software can streamline compliance for your practice by generating policies and procedures tailored to your needs. These solutions also include access to a team of compliance experts who can help answer your questions and ensure that you are interacting with patients in a HIPAA-compliant manner. To learn more about software solutions, with a compliance expert here.

Abyde News, Fines, HIPAA

The Rise of Ransomware in Healthcare: How a Phishing Breach Led to a $240K HIPAA Fine

October 14, 2024 Penelope Schweitzer No comments yet

October 14, 2024 Unfortunately, the future of data breaches is ransomware, accounting for nearly two-thirds of data breaches. As ransomware remains a significant threat in the healthcare sector, another HIPAA fine has been issued concerning a ransomware incident. Recently, a healthcare organization was fined $240,000 following ransomware attacks, including phishing, that compromised the Protected Health Information of over 85,000 patients. What happened? The Center of Orthopaedic Specialists merged with Providence Medical Institute, a healthcare system in southern California. In February 2018, during the transition, an employee clicked on a malicious link from a phishing attempt, which encrypted over 85,000 files with ransomware. Subsequently, two more successful ransomware attacks were launched on the already vulnerable IT system. Between these attacks, PMI restored data using backup tapes. In the final ransomware attack, the malicious actors used stolen credentials from previous attempts to remotely access PMI’s systems. What could they have done? After the breach, several cybersecurity mistakes that affected almost 100,000 patients were brought to light. Before merging with PMI, the Center of Orthopaedic Specialists partnered with another IT company, Creative Solutions in Computers. However, PMI failed to sign a Business Associate Agreement with the IT company during the transition, a crucial HIPAA requirement. This agreement ensures that both parties understand and take the necessary precautions to protect PHI. Furthermore, PMI made numerous IT and cybersecurity mistakes, such as sharing logins, not properly separating private networks from public networks, failing to monitor access controls, and not encrypting ePHI, which allowed anyone with access to view it. The lack of proper IT infrastructure, which could have been easily avoided, significantly impacted numerous patients. What’s next? After the recent HIPAA fine, it’s crucial for your practice to take the necessary precautions and implement cybersecurity measures to safeguard your patients’ data. When establishing a culture of compliance for your practice, using smart software solutions can help you assess your practice’s status and offer efficient solutions to meet requirements, such as electronically managed Business Associate Agreements. To find out more about how intelligent software solutions can protect your practice from cyber attacks, schedule a consultation with a compliance consultant.

A New York Health Center’s Case is Denied Under OSH Act

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