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BA Blunders: Lessons From Major Fines Given to BAs

February 6, 2024

Hey there, privacy protectors! Abyde here, your friendly neighborhood compliance champion, dropping some serious knowledge about Business Associate (BA) blunders. You know, those slip-ups that land you in hot water with HIPAA? Not a fun time at all. Here are some major lessons that BAs can learn from to ensure they continue to uphold their shared responsibility of protecting patient data. 

Proactive security is key: Assuming your company is immune to threats can lead to costly mistakes. Doctors’ Management Services faced this harsh lesson when they were part of a cyber attack and their files, which included protected health information, were infected with ransomware. DMS didn’t realize their files were affected for over a year. This infection isn’t something that can be quickly cured, with hacking organizations demanding money in exchange for access to files.

The DMS’s delayed reactionary response teaches BAs what not to do. The DMS did not have an updated security risk assessment, policies and procedures in place, or security systems in place to be prepared for this ransomware attack. The OCR fined them a pretty penny, $100,000, for their negligence. This lesson was also the first fine based on a ransomware attack. 

Secure all servers: All protected health information, or PHI, a Business Associate interacts with, needs to be properly secure. While this seems obvious, BAs have learned this lesson the tough way, like MedEvolve’s $350,000 fine. MedEvolve had PHI online on an easily accessible server. This publicly accessible server included information like patient names, billing addresses, and even social security numbers. 

A similar fine also occurred to iHealth Solutions, an IT organization that did not properly secure access to a server that contained the PHI of over 250 patients. This mistake cost the company $75,000. 

Set up remote deletion of PHI: When working in a business, numerous devices have access to PHI. It is imperative to ensure data can be quickly wiped if these devices get into the wrong hands. A perfect example of this lesson was one learned by the  Catholic Health Care Services of the Archdiocese of Philadelphia, which was fined $650,000. There was a theft of a CHCS employee’s phone that contained PHI. This phone had access to extensive PHI, including, social security numbers, diagnoses and treatments and patients’ families. Due to this stolen device, and no proactive measures to mitigate the detrimental impacts of theft, the CHCS was heavily fined and had to be monitored for two years. 

These fines may grab headlines, but the true cost goes beyond money. Breaches erode patient trust, damage reputations, and hinder the security of healthcare. Remember, BAs play a vital role in safeguarding sensitive information, and non-compliance has far-reaching consequences.

While these fines serve as expensive lessons, Abyde is here to simplify compliance for your organization. Learn more about what it means to be a compliant Business Associate by emailing info@abyde.com and scheduling an educational consultation here. 

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What Every Dental Practice Can Learn From the $140K Shen Smiles Settlement

October 9, 2026 Penelope Schweitzer No comments yet

October 9, 2026 The latest HIPAA settlement doesn’t involve a hospital system or a massive ransomware attack. It involves a practice that probably looks a lot like yours. Shen Smiles is a solo dental practice in Drums, Pennsylvania. It started with a former patient’s complaint about getting their health records. It led to a broader OCR investigation and a $140,000 settlement. The lesson? Every HIPAA-regulated organization, big or small, can face enforcement.   What happened? Under federal law, patients must be given access to their records within 30 days, with one possible 30-day extension if the patient is notified in writing within the first 30 days. In April 2020, a former patient’s attorney filed a complaint with the Office for Civil Rights (OCR). The complaint alleged that the patient had requested their records multiple times without receiving access. The public documents don’t say when the first request was made. OCR’s investigation went beyond the original complaint. According to the resolution agreement, OCR found that patient records weren’t properly maintained and that staff hadn’t received formal HIPAA Privacy Rule training. OCR also said the practice couldn’t produce evidence that it had HIPAA policies and procedures in place, including for patient access requests, or that it had reasonably safeguarded patient information. During the investigation, the practice stated that it couldn’t provide the records because a workforce member had stolen them. The public documents don’t address whether a breach assessment was done. As a general rule, though, HIPAA presumes that an impermissible acquisition, access, use, or disclosure of unsecured patient information is a breach. A breach can require notifying HHS and affected patients, including steps patients can take to protect themselves. These are baseline requirements every covered entity is expected to have in place. Policies and training give a team a HIPAA playbook. Without one, staff at any practice may not know what to do when a patient asks for records or records go missing. OCR proposed a $140,000 civil money penalty in July 2024. Shen Smiles requested a hearing before an administrative law judge, but the two sides reached a resolution agreement in August 2026, before the hearing took place. Under the agreement, the practice agreed to pay $140,000. The agreement is not an admission of liability.   The Takeaway for Practices Patient access has been an OCR priority for years through its HIPAA Right of Access Initiative, and this case marks its 56th Right of Access enforcement action. It also took more than six years from complaint to resolution. As this case shows, a single complaint can lead to a broader look at your compliance program. Now is the time to ask: Do we have written HIPAA policies our team can find? Do we have a process to answer every record request within 30 days? Can we prove every team member has completed HIPAA training? If any of those gave you pause, now’s the time to fix it, before OCR comes asking. Looking for the first step? Meet with one of our compliance experts to see where you currently stand. 

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September 21, 2026 Penelope Schweitzer No comments yet

September 21, 2026   The HHS Office for Civil Rights (OCR) has announced its biggest HIPAA settlement of the year, reaching nearly a million dollars.  Ambry, a genetic testing and clinical genomics provider based in Aliso Viejo, California is at the center of this enforcement. A settlement was reached over a 2020 phishing attack that exposed the Protected Health Information (PHI) of more than 225,000 individuals. This settlement is a clear reminder that even large organizations trip up on HIPAA requirements.    What happened In January 2020, an employee email account at Ambry was compromised through a phishing attack.  The breach potentially exposed a wide range of PHI, including names, addresses, dates of birth, Social Security Numbers, financial details, and more. Ambry reported the breach to OCR in March 2020, which kicked off the investigation.    Where OCR found gaps OCR’s investigation identified several HIPAA Security Rule gaps, including: No accurate, thorough risk analysis of risks and vulnerabilities to ePHI No process for cutting off access to ePHI when an employee left or no longer needed access No unique user IDs for tracking who was accessing ePHI systems These are baseline HIPAA requirements that every Covered Entity and Business Associate is expected to have in place.   The settlement terms Ambry paid $700,000 and agreed to a two-year corrective action plan, under which it must: Complete a thorough risk analysis of ePHI confidentiality, integrity, and availability Build and execute a risk management plan addressing what that analysis turns up Review and update Security Rule policies and procedures as needed Implement unique user identification across all ePHI systems Train the whole workforce on those updated policies The takeaway for practices When 90% of healthcare hacks start with a successful phishing attempt, it’s key your team is aware of the role they play to keep data safe. Every practice should ask; Do we know exactly where our ePHI lives and how it moves through our systems? Do we have a current, documented risk analysis? Would we catch it fast if a former employee’s access wasn’t revoked? Looking for the first step of addressing these gaps? Meet with one of our compliance experts to see where you currently stand. 

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September 1, 2026 Penelope Schweitzer No comments yet

September 1, 2026   The Office for Civil Rights (OCR) announced its 55th settlement under the HIPAA Right of Access Initiative, and this one is a good reminder that “we’ll get to it” is an easy shortcut to a massive financial penalty.   What happened Azul Vision, Inc., a California optometry enterprise healthcare provider, took nearly two years to provide a patient her healthcare records failed to give a patient timely access to her health records. She requested her records in January 2023. She didn’t actually receive them until January 2025, or two years later, and only after OCR opened an investigation following her complaint in April 2023.   The importance of Right of Access The HIPAA Privacy Rule’s Right of Access is straightforward: patients are entitled to their healthcare records within 30 days of a request, with one possible 30-day extension if needed.    The cost Azul Vision agreed to a two-year, OCR-monitored corrective action plan and paid $50,000. The corrective action plan requires the practice to: Review and revise its written policies and procedures for Privacy Rule compliance.  Regularly report to HHS a log of every PHI access request it receives, including when it came in and when it was resolved, Train all workforce members on right of access requirements and the practice’s own procedures.   Practical takeaways Have a documented, assigned process for access requests: not an informal “someone will handle it” arrangement. Track every request against the 30-day (or extended 60-day) clock: If nothing is timestamping requests, nothing is catching the ones that slip. Train staff specifically on right of access: this is a distinct Privacy Rule obligation from general HIPAA awareness, and it’s clearly one OCR is actively enforcing.   The bottom line A single records request that went unanswered turned into a $50,000 penalty, two years of federal monitoring, and a detrimental hit to the organization’s reputation. That’s a steep price for what really comes down to a missing process. If your team can’t answer “what happens the moment a patient asks for their records?” right now, that’s the gap to close before your practice ends up as OCR’s next enforcement case. Want a streamlined way to close your compliance gaps? Meet with an Abyde expert today!

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