OCR Settles with Two Entities for $1.9M Over Breaches Resulting from Stolen (Unencypted) Laptops

OCR Settles with Two Entities for $1.9M Over Breaches Resulting from Stolen (Unencypted) Laptops
HHS announced on April 22, 2014 that the Office of Civil Rights (OCR) has settled with Springfield Missouri Physical Therapy Center and QCA Health Plan, Inc. of Arkansas for a collective $1,975,220 related to breaches that resulted from stolen unencrypted laptops.
 
Details from the OCR are included below (with my emphasis):
Stolen laptops lead to important HIPAA settlements
 
Two entities have paid the U.S. Department of Health and Human Services Office for Civil Rights (OCR) $1,975,220 collectively to resolve potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules.  These major enforcement actions underscore the significant risk to the security of patient information posed by unencrypted laptop computers and other mobile devices.
 
OCR opened a compliance review of Concentra Health Services (Concentra) upon receiving a breach report that an unencrypted laptop was stolen from one of its facilities, the Springfield Missouri Physical Therapy Center.  OCR's investigation revealed that Concentra had previously recognized in multiple risk analyses that a lack of encryption on its laptops, desktop computers, medical equipment, tablets and other devices containing electronic protected health information (ePHI) was a critical riskWhile steps were taken to begin encryption, Concentra's efforts were incomplete and inconsistent over time leaving patient PHI vulnerable throughout the organization. OCR's investigation further found Concentra had insufficient security management processes in place to safeguard patient information. Concentra has agreed to pay OCR $1,725,220 to settle potential violations and will adopt a corrective action plan to evidence their remediation of these findings.
 
OCR received a breach notice in February 2012 from QCA Health Plan, Inc. of Arkansas reporting that an unencrypted laptop computer containing the ePHI of 148 individuals was stolen from a workforce member's car.  While QCA encrypted their devices following discovery of the breach, OCR's investigation revealed that QCA failed to comply with multiple requirements of the HIPAA Privacy and Security Rules, beginning from the compliance date of the Security Rule in April 2005 and ending in June 2012QCA agreed to a $250,000 monetary settlement and is required to provide HHS with an updated risk analysis and corresponding risk management plan that includes specific security measures to reduce the risks to and vulnerabilities of its ePHI.  QCA is also required to retrain its workforce and document its ongoing compliance efforts.
The Resolution Agreements is available on the the OCR website at https://www.hhs.gov/ocr/privacy/hipaa/enforcement/examples/stolenlaptops-agreements.html.



Posted by Tatiana Melnik April 22, 2014.

 

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