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Protecting Every Layer: HIPAA Essentials for Your Dermatology Practice

July 1, 2025

 

HIPAA violations are not skin-deep. 

Dermatology practices, like all healthcare practices, are subject to HIPAA legislation. Common HIPAA violations erode reputation and patient trust, potentially costing your practice significant legal fees and fines. 

Dermatology practices have unique data, like photos of skin ailments and reports of skin biopsies, which must be securely handled. 

Sharing a picture of an abnormal mole without proper documentation, even if it looks harmless, is a HIPAA violation. Why? This is because the image includes identifiable health information about your patient. 

The good news? Frequent HIPAA pitfalls can easily be prevented with the proper safeguards and education. Being aware and implementing the right proactive safeguards secures your practice. 

 

Social Media 101 

Before-and-after patient photos can be a powerful marketing tool on social media, but mishandling them could attract unwanted attention from the Office for Civil Rights (OCR). 

It’s totally normal to be proud of the great results you achieve for your patients. However, if you plan to share how your treatment helped a patient publicly, you must have that patient sign a media consent form. This form explicitly grants permission to share their healthcare procedures or results online.

Beyond that, your practice must have a well-defined multimedia policy outlining how social media is handled. This ensures your entire staff is equipped and aware of their responsibilities regarding sharing information online, keeping everyone compliant, and protecting patient privacy.

It’s also important to regulate your dermatology staff’s communication with patients on social media. While a patient may leave a positive review about how a chemical peel treatment made them look younger, you cannot confirm or deny whether that patient visited your practice. If you want to use a favorable review in your social media marketing, make sure the patient has signed the media consent form.

Even a negative review can lead to a HIPAA violation if you’re not careful. While it’s tempting to defend your practice publicly, the cost of a violation far exceeds the initial frustration. For instance, one practice faced a $10,000 fine for disclosing Protected Health Information (PHI) on Yelp. The right move would have been to move the conversation offline and communicate with the patient privately through a secure channel.

 

Staying Ahead: Security Risk Analysis

One of the most common fines is missing a vital piece of proactive compliance. The Security Risk Analysis (SRA) is a thorough assessment of all the safeguards your practice has in place to secure PHI. The minimum annual SRA must be completed before and after a HIPAA breach, showcasing your practice is aware of vulnerabilities and documenting how they are addressed. 

This isn’t an isolated issue; it’s a widespread compliance gap, with only 14% of healthcare practices able to produce a compliant SRA during random audits.

The recent case of a dermatology organization that faced an investigation after a substantial ransomware breach. The incomplete SRA discovered during the investigation led to a hefty $250,000 fine for the practice.

It’s a common misconception that fines are solely a consequence of ransomware attacks. However, the true underlying reason for a fine is the failure to implement appropriate preventative safeguards. While ransomware attacks and cybercrimes can certainly occur despite even the most robust safeguards, a practice’s preventative and reactive response and ability to mitigate risk swiftly determine whether a fine is levied.

 

Improper Paper Trails

The entire lifecycle of PHI, from generation to deletion, needs to be handled securely. This includes properly shredding and disposing of records. Any image of a patient’s skin, old samples, etc., must be disposed of securely.

First, records need to be kept for at least six years, but once disposed of, they cannot be traced to patients and must be destroyed entirely. Simply putting records in the trash isn’t going to cut it. In fact, Business Associates can handle data destruction for your practice. 

A dermatology practice was fined for improper disposal. Empty specimen containers, with PHI on the label, such as patient names, dates of birth, and more, were thrown in unsecured trash. After discovering that this disposal was typical for the dermatology organization for years, the practice was fined over $300,000. 

 

How to Avoid Common Dermatology HIPAA Violations

The right HIPAA compliance program can avoid these common missteps. Proactive compliance, including thorough training and a maintained SRA, is key to the success of your dermatology practice. 

While handling your practice’s compliance program might feel overwhelming, compliance solutions can streamline this process. 

Intelligent software can easily pinpoint and address common violations in a centralized compliance hub. By maintaining control and proactively addressing compliance gaps, your practice can achieve peace of mind.

Meet with a compliance expert today to learn more about simplifying HIPAA compliance for your dermatology practice. 

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What OSF Healthcare’s Ransomware Fine Teaches Every Practice About SRAs

August 5, 2026 Penelope Schweitzer No comments yet

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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May 4, 2026 Penelope Schweitzer No comments yet

May 4, 2026   Quick Guide:  The Office for Civil Rights (OCR) just issued a massive wake-up call, announcing four simultaneous settlements totaling $1,165,000. The Stats You Need to Know 76%: The percentage of large healthcare breaches now caused by hacking/IT incidents. 427,000+: Total number of patients impacted across these four recent settlements. 264%: The increase in ransomware-related breaches reported to the OCR since 2018. The Office for Civil Rights (OCR) just announced a flurry of investigation settlements. At the root of the four that were announced: ransomware. Ransomware attacks continue to target healthcare facilities. As of last year, the OCR discovered that 76% of large breaches are due to hacking and IT shortcomings. Unfortunately, healthcare information is a goldmine for hackers, exposing sensitive data that can lead to identity theft, financial fraud, and compromised patient care. Breakdown & Lessons Learned Regional Women’s Health Group (Axia) The first settlement was regarding the Regional Women’s Health Group (Axia), an OBGYN network across five states. In this case, the organization submitted a breach report following a cyberattack that exposed over 37,000 patients. The settlement resulted in a $320,000 fine and a 2-year Corrective Action Plan (CAP). The Lesson: The OCR didn’t just fine them for being hacked; they reached a settlement because the healthcare organization failed to conduct a “thorough and accurate” Security Risk Analysis (SRA). If you don’t know where your vulnerabilities are, you can’t patch them. Unfortunately, hackers counted on this negligence and exploited it.  Assured Imaging This was the largest of the four fines, affecting a staggering 244,813 individuals. When a ransomware infection hit their servers, Assured Imaging, a medical imaging enterprise, reported a breach to the OCR. After a long investigation (the initial cyberattack occurred in 2020), and resulted in a $375,000 settlement and a 2-year CAP.  The Lesson: Beyond the initial ransomware attack, it was discovered that Assured had never completed an SRA. Additionally, the organization did not notify patients within 60 days of discovery of the breach. This is a direct violation of the Breach Notification Rule, which aims to allow patients to take control and mitigate risks as quickly as possible.  Consociate Health Consciate Health is the only Business Associate (BA) fine in the four. BAs continue to be under the OCR’s microscope, such as potentially needing to follow stricter requirements when handling patient data. Their breach started with a phishing attack that eventually led to the encryption of systems holding data for over 136,000 people. The BA discovered the ransomware six months after the initial phishing attack. Upon the OCR’s further investigation, the SRA was found to be insufficient. The organization paid a $225,000 settlement and entered into a 2-year CAP.  The Lesson: Human error (phishing) is the most common entry point for ransomware. Constant employee training is just as important as a strong firewall. Additionally, just because a BA doesn’t directly work with patients doesn’t mean it isn’t their responsibility to keep patient data secure.  SG Health Plan Even employee benefit plans are regulated under the Health Insurance Portability and Accountability Act (HIPAA). SG Health Plan, associated with a Connecticut energy provider, reported that the data of 9,316 members were exposed following a ransomware attack. It was discovered that the organization did not complete an extensive SRA. The benefit plan entered a settlement with the OCR for $245,000 and a 2-year CAP.  The Lesson: This settlement highlights that HIPAA applies to corporate health plans just as much as it does to traditional healthcare providers. Additionally, every organization that handles Protected Health Information (PHI) must complete an SRA.  The Bottom Line The OCR isn’t fining practices for ransomware attacks, but for being ill-prepared.  However, it is easier said than done to ensure your organization is secure in protecting patient data and complying with HIPAA.  Proactively implementing the HIPAA Security Rule is your opportunity to mitigate the impacts of a cyberattack. Waiting until the ransom note appears on your screen is a million-dollar mistake. Want to see what you might be missing?  Run a 5-Minute HIPAA Gap Assessment and protect your practice today! 

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