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Appeals Court Vacates $4.3 Million HIPAA Penalty

Get Permission In a ruling that could have a profound impact on HIPAA enforcement, a U.S. Court of Appeals has vacated a $4.3 million HIPAA civil monetary penalty levied by federal regulators against the University of Texas MD Anderson Cancer Center in the wake of three breaches involving unencrypted mobile devices. The court called the penalty “arbitrary, capricious and contrary to law.” In its ruling, the 5th Circuit U.S. Court of Appeals in Louisiana was critical of the Department of Health and Human Services Office for Civil Rights’ interpretation of HIPAA requirements and how it sets civil monetary penalties.

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