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Court Finds HHS Had No Lawful Basis Under HIPAA for a $4.3 Million Civil Money Penalty: What Does This Mean for Future HHS Enforcement Actions? | BakerHostetler

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The United States Court of Appeals for the Fifth Circuit recently found that the United States Department of Health and Human Services (HHS) lacked a lawful basis for a $4.3 million civil money penalty order that it issued to a healthcare provider for alleged violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). Covered entities and business associates should take note of the court’s decision to provide guidance on their HIPAA compliance efforts and response to enforcement actions taken by HHS. This decision could significantly impact future HHS enforcement actions. ....

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Perfection Not Required: Fifth Circuit Vacates HHS OCR $4.3 Million Penalty for Potential Data Breach Case | Bass, Berry & Sims PLC

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On January 14, the Fifth Circuit vacated the University of Texas M.D. Anderson Cancer Center’s (M.D. Anderson) $4.3 million fine for HIPAA violations arising from its loss of more than 35,000 individuals’ protected health information (PHI).
Data Incidents and Agency Response
In 2012, an M.D. Anderson faculty member’s unencrypted laptop containing electronic protected health information (ePHI) for 29,021 individuals was stolen. Later in 2012, an M.D. Anderson trainee lost an unencrypted USB thumb drive that contained ePHI for over 2,000 individuals. In 2013, a visiting researcher lost another unencrypted USB thumb drive that contained ePHI for nearly 3,600 individuals. ....

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