Civil Monetary Penalty Imposed for HIPAA Violation
Saturday, April 23, 2011
The United States Department of Health and Human Services’ Office for Civil Rights (OCR) recently imposed a civil monetary penalty of just over $4.3 million against Cignet Health of Prince George’s County in Maryland. Forty-one patients had filed complaints with OCR after being denied access to their medical records by Cignet Health. OCR investigated the matter and determined that Cignet Health had indeed violated the patients’ rights by denying them access to their medical records. The penalty for these violations was $1.3 million.
During the investigation, Cignet Health had failed to respond to repeated informal demands from OCR to produce the records at issue. Cignet Health had also failed to produce the records in response to an OCR subpoena. OCR eventually filed a petition to enforce its subpoena in federal court and obtained a default judgment against Cignet Health. Cignet Health did then produce the records, but the damage had already been done. The OCR determined that Cignet Health’s failure to cooperate was due to willful neglect and fined Cignet Health an additional $3 million.
This was the first civil monetary penalty issued by OCR for a violation of the HIPAA privacy rule. Mere weeks after this penalty was issued, Massachusetts General Hospital signed a resolution agreement with OCR pursuant to which Massachusetts General Hospital agreed to pay the federal government $1 million to settle potential HIPAA violations. These potential violations stemmed from the loss of protected health information when an employee who was commuting to work left aboard a train 192 patient records, which were never recovered.
The government is clearly stepping up its enforcement of the HIPAA privacy and security rules. Those organizations required to comply with HIPAA should review policies and procedures to ensure that patient information is being adequately protected.
If you would like assistance in developing or updating your HIPAA policies and procedures, please contact attorney Johanna M. Novak at (517) 371-8231 or (906) 226-5501.
MD News March/April 2011, West Michigan