OCR Clears Up Confusion About the Charging of Flat Fees for Copies of PHI
Earlier this year the Office for Civil Rights issued guidance for healthcare providers and health plans on the general right of patients to obtain copies of their protected health information on request. The HIPAA Privacy Rule allows patients to obtain one or more designated record sets which a covered entity holds and maintains. By obtaining copies of their PHI, patients can take control of their own healthcare and well-being. Providing copies of PHI to patients involves a cost to the covered entity, such as the time taken to obtain and copy records and prepare summaries, the cost of paper and printing if record sets are supplied in physical form, the cost of media devices for electronic copies of PHI, and the cost of mailing records to patients if they are not collected in person. Covered entities are permitted to charge patients for providing copies of their PHI, which was explained in the OCR guidance; however, based on the questions submitted by covered entities there appeared to be some confusion over allowable charges, in particular regarding the charging of flat rate fees...
Kansas Heart Hospital Ransomware Attack: Ransom Paid, Second Demand Issued
As last week’s Kansas Heart Hospital ransomware attack clearly demonstrates, paying a ransom may not necessarily result in decryption keys being supplied by attackers to allow files to be unlocked. Ransomware Claims Another Healthcare Victim This year a number of healthcare organizations have had vital data locked by malicious file-encrypting software. In February, Hollywood Presbyterian Medical Center felt there was little alternative but to pay a ransom to attackers to obtain decryption keys to unlock files that had been locked with ransomware. The attackers issued a Bitcoin ransom demand of approximately $17,000. Upon paying the ransom, the medical center was provided with a security key for each of the devices that had been infected. Other healthcare providers have also been attacked this year. MedStar Health was reportedly issued a 45 Bitcoin ($19,000) ransom demand, although the ransom was not paid, instead files were recovered from backups. Other attacked healthcare providers were also able to avoid paying a ransom and recovered their locked files by restoring their systems...
Engineer Indicted on Charges of Trade Secret Theft from Medical Device Companies
The United States Department of Justice has charged an engineer with the theft and possession of trade secrets belonging to two medical device manufacturers. 43-year old Wenfeng Lu of Irvine, California, was indicted on 12 charges by a grand jury on Wednesday this week. Lu is alleged to have stolen proprietary trade secures from EV3 Covidien while employed at the company between January 2009 and October 2011, and from Edwards Lifesciences Corp., where he was employed between November, 2011 and November, 2012. Lu is alleged to have stolen information and emailed the confidential data to his personal email account. It has also been alleged that Lu took photographs of equipment and copied company reports, presentations, emails, and test results. Lu visited the People’s Republic of China (PRC) on multiple occasions after obtaining data. It is alleged that Lu was attempting to set up his own company with associates in PRC and planned to use the trade secrets to manufacture medical devices in PRC. Lu was arrested by the FBI in 2012 while preparing to board a plane bound for PRC. Lu was...
Deven McGraw Offers Advice on the Upcoming HIPAA Compliance Audits
Deven McGraw – deputy director of health information privacy at the Office for Civil Rights (OCR) – has offered some advice to covered entities ahead of the HIPAA-compliance audits which are scheduled to take place later this year. The second round of HIPAA-compliance audits will be conducted on covered entities first, followed by business associates. OCR contacted covered entities earlier this year to verify contact information. That process is almost complete and a pool of healthcare providers, health plans, and healthcare clearinghouses will soon be finalized. OCR will select approximately 200 organizations from that pool for a desk audit. Covered entities selected for audit will be notified and given 10 days to submit the requested documentation to the OCR. This does not give covered entities much time so it is important that preparations are made early. In an interview with the Information Security Media Group, McGraw suggested that covered entities should start preparing now in case they are selected for a desk audit. Last month, OCR released the updated audit protocol which...
Illinois Data Breach Notification Law Updated
Illinois data breach notification law has been updated, broadening the definition of personal information and changing the timescale for notifying the Attorney General of data breaches. A breach notification will need to be issued if a person’s full name or last name and initial is exposed in combination with any of the following data elements: Driver’s license number Social Security number Credit or debit card number Biometric data Usernames and email addresses (along with passwords or other data that would allow access to accounts to be gained) Medical information Health insurance information Notifications will not be required if a breach occurs and data are encrypted, or if exposed data are publicly available. The new law specifically mentions health insurance information which includes a subscriber ID number, health insurance policy number, or any other unique identifier used to identify an individual. Any medical data provided to a health insurer in an application, appeals records, or claims history, is also included in the new definition. The exposure of information relating...



