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Fifth Circ. Reversed HHS Civil Penalties over Hospital Data Breaches


Monday, February 8, 2021
Will HHS’ approach for imposing penalties in the aftermath of a data breach become a little clearer in 2021? This is a distinct possibility in the wake of a Fifth Circuit decision vacating penalties against MD Anderson Cancer Center. The hospital suffered three data breaches, leading HHS to impose over $4 million in civil penalties. That fine was reversed recently by the Fifth Circuit as arbitrary, capricious, and contrary to law.
MD Anderson first reported to HHS a lost unencrypted laptop that contained ePHI of 29,021 individuals in 2012. It also misplaced two unencrypted USB thumb drives in 2012 and 2013, the first had ePHI of over 2,000 individuals, and the other had ePHI of nearly 3,600 individuals. On February 8, 2019, following HHS’s inquiry and investigation, an HHS Appeals Board affirmed an Administrative Law Judge’s decision sustaining HHS’s civil monetary penalties for the company’s alleged (i) failure to implement ....

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HIPAA Enforcement: HITECH Cybersecurity Amendments


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HITECH Act Amendment Incentivizes Adoption of NIST and Other Recognized Cybersecurity Safeguards as a Defense or Mitigation to HIPAA Enforcement
Sunday, January 10, 2021
On January 5, 2020, HR 7898, became law amending the Health Information Technology for Economic and Clinical Health Act (HITECH Act), 42 U.S.C. 17931, to require that “recognized cybersecurity practices” be considered by the Secretary of Health and Human Services (HHS) in determining any Health Insurance Portability and Accountability Act (HIPAA) fines, audit results or mitigation remedies. The new law provides a strong incentive to covered entities and business associates to adopt “recognized cybersecurity practices” and risk reduction frameworks when complying with the HIPAA privacy and security standards to reduce risk associated with security threats and HHS enforcement determinations. Specifically, the earlier adoption of an established, formalized and recognized ....

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