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HHS Extends National Public Health Emergency & Limited HIPAA Waivers

July 30, 2020

COVID-19 has made 2020 feel like both the shortest and longest year ever, and if rising cases are any indication it’s not likely to let up anytime soon. You may have already expected our ‘new normal’ of mask-wearing, keeping a 6-foot distance, and HIPAA waivers to be here for the long haul, and the recent Department of Health and Human Services (HHS) extension of the National Public Health Emergency solidifies that notion.

Just last week the HHS announced the renewal of the National Public Health Emergency and an extension of limited HIPAA waivers until October 23, 2020. This declaration means more than continued social distancing rules, and also extends the many other waivers and flexibilities issued by the HHS in the initial response to the pandemic. These waivers work to mitigate the risks to the health of the general public while assisting healthcare providers with the necessary accommodations to protect their practice and continue serving their patients. To give a recap on everything that’s been changed or updated in lieu of COVID-19:

  • HIPAA policies already outlined for a Public Health Emergency were put into effect
  • Enforcement discretions were made for the provision of telehealth services
  • Protected Health Information (PHI) disclosure permissions were extended to both providers and their business associates  

In addition to the specific waivers granted in response to the pandemic, practices should be aware of additional guidance covering the expansion of cyber security attacks in response to increased remote operations, reminders on restrictions of sharing patient information to the media, and proactively safeguarding against the recent rise in patient complaints due to COVID-19. 

As part of the recent extension of HIPAA waivers, the HHS has specified a 90-day period until waivers are expected to be lifted. Practice’s now have a clear timeframe of when they need to implement HIPAA compliant solutions for tools like telehealth which may currently be done using a non-compliant software. To prevent a HIPAA violation as these waivers end in October, it’s important that your practice proactively prepares by:

  • If you choose to continue use of telehealth services, implement a HIPAA compliant telehealth provider as soon as possible. This will ensure the greatest protection of your patients’ secure information now, even with waivers active, and easily transition your practice back to regular HIPAA enforcement when waivers are lifted. 
  • Ensure that you are properly safeguarding your electronically managed health data, regardless of a pandemic, but especially as cyber threats continue to rise. Having more than just a HIPAA compliant Electronic Health Records (EHR) system and implementing the necessary technical security measures to protect against cyberattacks will be huge factors to maintaining the security of your patient’s information and preventing HIPAA violations.

While these HIPAA regulation flexibilities have been extended, they aren’t going to last forever. Keeping your practice one step ahead will make all the difference in your ability to avoid any HIPAA violations or fines as standard regulations take effect again. If HIPAA hasn’t been your number one priority over the past few months, you should start now and use this 90-day extension to ensure you have a complete compliance program in place, especially as 2020 continues to fly by.

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Abyde News, Fines, HIPAA

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. 

Spencer Gifts HIPAA Fine
Abyde News, Fines, HIPAA

Spencer Gifts HIPAA Settlement: Ransomware, Risk Analysis, and What Comes Next

June 19, 2026 Penelope Schweitzer No comments yet

June 19, 2026   Quick Guide:  The Office for Civil Rights issued a major fine towards Spencer Gifts benefits plan. This fine reinforces that all HIPAA-regulated entities must have a thorough compliance program.    The Stats You Need to Know 76%: The percentage of large healthcare breaches now caused by hacking/IT incidents. $450,000: Financial settlement of this enforcement. 10,023: The number of individuals were impacted in this breach.  264%: The increase in ransomware-related breaches reported to the OCR since 2018.   When you think about Spencer’s, you likely picture the staple mall store with pop culture novelty gifts, not the latest HIPAA settlement enforcement headline.  Spencer Gifts LLC Flexible Benefits and Welfare Benefit Plans, or their employee benefits plan, reached a settlement with the Office for Civil Rights for $450,000 and a 2 year Corrective Action Plan (CAP).  This fine is a reminder that Covered Entities include all parties that create and utilize patient data, including health care plans. While they might not see patients traditionally, they still are responsible for keeping Protected Health Information (PHI) secure.    What Happened?   In response to employee complaints regarding access to their employee benefits portal, Spencer Gifts Health Plan discovered their systems were infiltrated with ransomware in November 2021. Malicious actors encrypted over 10,000 individuals’ PHI and demanded a ransom. The exposed data included names, phone numbers, social security numbers, and more, putting employees at risk.  The breach was reported in January 2022. After years of investigation, it was settled that the plan failed to meet basic HIPAA Security Rule requirements proactively.    The Compliance Gaps A common misconception is that an organization faces a financial penalty due to a breach. While the breach serves as the catalyst for the investigation, the OCR is looking to see if an organization has a thorough compliance program in place and made a genuine effort to protect patient data.  For instance, the health plan did not complete a Security Risk Analysis (SRA). This required assessment identifies all technical, administrative, and physical safeguards (and vulnerabilities) across your organization. By completing this document, your organization can address concerns before they become an issue. There’s no way to know where risks are unless they are properly reviewed.  Additionally, the plan did not have sufficient policies and procedures, nor trained staff adequately. Without sufficient policies and training, staff are left without the tools to recognize and respond to HIPAA threats before they escalate. As a result, Spencer Gifts now faces $450,000 in penalties and two years of government monitoring to ensure those missing requirements are finally implemented. And that figure doesn’t account for the years of investigation, legal fees, breach notification costs, and operational disruption that preceded the settlement.   The Biggest Takeaway This case isn’t only a lesson for retail organizations’ health plans, but it’s a warning for every HIPAA-regulated entity. The OCR can and will investigate any organization exposed for failing to meet HIPAA requirements, including small medical practices To be prepared before a cyberattack occurs, make sure your organization has: A completed and current Security Risk Analysis. A trained workforce that knows how to handle PHI Accessible policies and procedures staff can actually reference. An up-to-date compliance program.  Ready to strengthen your compliance program? Schedule a free educational consultation with our team today.

OCR Ransomware Settlements
Abyde News, Fines, HIPAA

OCR Ransomware Settlements: 4 Massive HIPAA Fines from April 2026 & How to Avoid Them

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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