May 8, 2020 As a business owner, you know there are a lot of elements that go into running a successful healthcare practice. It’s common to have third-party companies assist with everything from accounting, to document disposal, to managing remote operations through cloud sharing and telehealth services. These vendors may be a big part of keeping your practice running smoothly. While you may already do a fantastic job of checking your contracts with these vendors – your terms of service, payments, etc. – where many practices fall short is in reviewing your vendor’s obligations to protect your sensitive patient information. As a healthcare provider, your practice functions as a covered entity, and any vendor that comes into contact with PHI in the process of working with your practice becomes a Business Associate (BA). Not all companies that your practice hires come into contact with PHI, so how do you know who exactly qualifies as a Business Associate? The HHS defines a Business Associate as any organization that creates, receives, maintains, or transmits PHI on behalf of a covered entity. Some examples of Business Associates include: Once you determine who is considered a Business Associate to your practice, you must then institute formal agreements to ensure your practice and your third-party vendors are properly protecting the security of your patient information. This agreement highlights the specific elements of HIPAA compliance that should be followed by both you and each of your Business Associates, including: Even if a vendor comes into contact with your PHI only once, it’s better to play it safe and have the proper agreements in place – just that one instance could be the catalyst for a breach of PHI. Not having the proper Business Associate agreements in place has been the cause of hundreds of HIPAA violations. One case, in particular, cost a medical practice in Utah a $100,000 settlement on top of a two-year corrective action plan. The practice filed a complaint against their EHR company who allegedly had been blocking access to patients’ ePHI. Although it might seem like the practice was a victim in this situation, the OCR found that there was no Business Associate Agreement in place – leaving the liability solely on the practice’s shoulders. Data breaches, cyber-attacks, and improper handling of PHI can happen to your practice at any time as well as the companies you work with – especially when operating remotely or bringing on new vendors to help manage operations. Ensuring that you have the proper agreements in place is vital in not only protecting your patient data but offsetting the liability of your practice in the case of a breach. A software solution like Abyde makes this process a whole lot easier with a Business Associate Portal that automatically generates formal agreements with all the proper policies and procedures in place – taking the stress of HIPAA compliance off you and your vendors.
Missing Business Associate Agreement with EHR Vendor Leads to $100,000 Fine
March 3, 2020 Announced today, a medical practice in Utah has come to a $100,000 settlement with the OCR for their failure to meet HIPAA requirements under the Security Rule. The practice of Steven A. Porter, M.D. received the $100,000 monetary settlement in addition to submitting to a corrective action plan over the next two years after a breach report led to the OCR’s investigation of the practice’s HIPAA compliance program. The investigation began after the practice filed a breach report regarding a complaint against a Business Associate of the practice’s EHR company. The Business Associate (BA) was blocking access to the practices’ patient’s electronic protected health information in exchange for $50,000 to be paid by the practice. While the original complaint was against the BA, once the investigation was initiated by the Office for Civil Rights, it was the practice that found themselves in the government’s crosshairs. Within the compliance review, the OCR had found that the practice had failed to do the following: Unfortunately for the practice, their lack of proper safeguarding and documentation of compliance cost them a hefty fine and put their patient’s PHI at risk. This breach, and corresponding financial settlement, highlights that even when working with typical healthcare vendors, such as EHR providers, the right Business Associate Agreements and HIPAA-compliant policies are required to prevent impermissible safeguarding or access to PHI. OCR Director, Roger Severino, included a statement in the HHS press release regarding the incident. “All health care providers, large and small, need to take their HIPAA obligations seriously, the failure to implement basic HIPAA requirements, such as an accurate and thorough risk analysis and risk management plan, continues to be an unacceptable and disturbing trend within the healthcare industry.” This fine follows a recent article highlighting the OCR’s focus on “low hanging fruit” and commitment to address an ongoing lack of HIPAA compliance among covered entities. As these violations continue to see costly outcomes, it is more important now than ever to ensure your practice has a full HIPAA program in place.

