6/2/2025 Did you know Business Associates (BAs) are at risk for ransomware attacks just as much as Covered Entities? Ransomware attacks disproportionately affect healthcare organizations, with malicious actors looking to exploit Protected Health Information (PHI). When PHI includes sensitive information such as Social Security Numbers, addresses, phone numbers, and more, it provides someone with a lot of information to use for the wrong reasons. A medical billing BA in Massachusetts, Comstar, LLC, recently experienced the fallout of a ransomware attack. Trusted with the PHI of over 70 practices, the organization did not have the proper safeguards to mitigate risk after a cybercrime. Part of this was a missing Security Risk Analysis (SRA), or a thorough assessment of an organization’s potential vulnerabilities. This latest enforcement represents the responsibility of BAs to uphold their commitments and for all HIPAA-regulated entities to complete and maintain an SRA. What Happened? In May 2022, a malicious actor intruded Comstar’s network servers. Comstar was unaware of this intrusion for several days. In the meantime, the hacker encrypted nearly 600,000 patient records with ransomware. Even though these patients weren’t directly Comstar’s, they assumed the responsibility of protecting their data. While it is not public what steps Comstar took to mitigate risks after the initial ransomware breach, it was discovered that the organization did not complete an SRA. This assessment is at the foundation of a compliant practice and is a requirement of HIPAA. After this discovery, the organization was fined $75,000 and put under a Corrective Action Plan (CAP), or government monitoring, for two years. This assessment is at the foundation of a compliant practice and is a requirement of HIPAA. Recently, the Office for Civil Rights (OCR) has sharpened its focus on this commonly missed requirement with the latest Risk Analysis Initiative. This fine is the 9th enforcement of this initiative. Streamlining the SRA with Software When less than 20% of BAs could showcase a compliant SRA when being audited, completing the SRA is unfortunately a common oversight by regulated entities. Additionally, this is a responsibility of both Covered Entities and BAs, and both parties must carefully handle PHI. With smart software, BAs can easily streamline the SRA and complete the assessment that pinpoints common vulnerabilities organizations face. By simplifying the SRA, intelligent solutions can empower an organization to cultivate a culture of compliance for its staff, securely meet requirements, and handle PHI. To learn more about how your organization can easily complete the SRA, meet with a compliance expert today.
Business Associate Accountability: Health Fitness Corporation’s $227k HIPAA Fine
March 27, 2025 With over $3.5 million of fines levied against Business Associates (BAs) so far in 2025, it’s fair to say that the Office for Civil Rights (OCR) is serious about holding them accountable. These fines in 2025 serve as a reminder that BAs play a crucial role in safeguarding Protected Health Information (PHI). The latest BA HIPAA fine was enforced on the Health Fitness Corporation, which offers wellness plans nationwide. After a flurry of breach reports, Health Fitness Corporation found itself in the crosshairs of a HIPAA investigation. This investigation exposed some critical missteps, leading to a $227,816 settlement and a two-year Corrective Action Plan (CAP). At the center of this fine is a missing Security Risk Analysis (SRA). The SRA is a thorough assessment that identifies the organization’s vulnerabilities. This fine was also the fifth enforcement of the Risk Analysis Initiative, a recent program by the OCR to ensure regulated entities complied with this HIPAA requirement. This fine not only spotlights the importance of Business Associates following HIPAA, but also for all regulated entities to be aware of the Security Risk Analysis requirement. What Happened? In August 2015, PHI was exposed online due to a server misconfiguration. This breach was not discovered in June 2018, with an estimated 4,000 patients impacted by this security issue. Four breach reports describing this incident were filed from the end of 2018 into early 2019. This led to the OCR investigating Health Fitness Corporation. It was then uncovered that the organization did not complete a thorough SRA until 2024. The SRA is an annual requirement for every HIPAA-regulated entity. This assessment should also be completed after any breach to review and address vulnerabilities. As a result, the wellness program organization was fined $227,816 with government monitoring for the next two years. How to Protect Your Organization When working with PHI, all involved parties must know their responsibilities. For Covered Entities and Business Associates, having a Business Associate Agreement (BAA) with any third parties with access to PHI is vital. BAAs define each party’s responsibilities, creating legal liability. This required document demonstrates that each party is willing and able to take responsibility for protecting sensitive patient data. In addition to being aware of HIPAA responsibilities, ensure your organization completes an SRA annually, and anytime a breach occurs. Risks can be mitigated by being on top and informed about your organization’s vulnerabilities. Utilizing a smart software solution can streamline these requirements. Smart solutions can streamline the SRA and any BAAs, protecting your organization. To learn more about how you can automate and streamline compliance in your practice, schedule a consultation with an expert today.