Outsourced HIPAA Compliance
Outsourced HIPAA compliance is when a HIPAA-regulated entity engages external consultants to manage part, or all, of the organization’s HIPAA compliance obligations in order to support an existing in-house compliance team, as an alternative to building an in-house team, or in response to a HIPAA security incident. Outsourced HIPAA compliance services can be structured in various ways. Some external consultants function as a full-service operation, effectively replacing – or becoming an extension of – the organization’s in-house compliance team. Others offer on-demand consulting for specific compliance issues, or – for example – to help an organization recover from a HIPAA security incident. By outsourcing HIPAA compliance, HIPAA-regulated entities benefit from the expertise of professionals who are up to date with regulatory requirements and industry best practices. This approach can also be cost-effective for smaller organizations that might not have the resources to build an in-house compliance team or employ key workforce members such as a cybersecurity...
Esse Health Cyberattack Disrupts Healthcare Services in St. Louis
Esse Health, an independent physician group healthcare provider with 50 locations in the Greater St. Louis area in Missouri, is dealing with a cyberattack that has prevented access to its electronic medical record system. Esse Health said its offices remain open, and patients are still being served; however, some appointments have had to be cancelled and will be rescheduled when systems have been restored. The attack has affected its phone system, which is operating in a limited capacity, with patients experiencing delays connecting calls. Patients have been advised to use the patient portal to send messages or to text the main number for their doctor’s office while the phone system is restored. Esse Health has engaged third-party specialists to assist with the forensic investigation and recovery efforts, and progress is being made in restoring its systems. At this early stage of the recovery process, it is unclear to what extent, if any, patient data has been compromised. Esse Health said that if patient data has been exposed or stolen, the affected individuals will be notified...
$20 Million Settlement Agreed to Resolve Fortra GoAnywhere Data Breach Multidistrict Litigation
A $20 million settlement has received preliminary approval from a Federal judge to resolve multidistrict litigation against the software provider Fortra, its clients, and their customers over a 2023 hacking incident involving the Fortra GoAnywhere managed file transfer (MFT) solution. The Clop ransomware group exploited a zero-day vulnerability in the solution to gain access to customer data. Several class action lawsuits were filed against Fortra in response to the data breach, with the settlement covering eight of nine class action lawsuits against Fortra and its healthcare clients. The lawsuits were consolidated in multidistrict litigation in February 2024 in the Southern District of Florida – In re: Fortra File Transfer Software Data Security Breach Litigation – and include claims against Fortra, NationsBenefits LLC, NationsBenefits Holdings LLC, Aetna Inc., Aetna Life Insurance Co., Santa Clara Family Health Plan, Anthem Insurance Companies Inc., Elevance Health Inc., Community Health Systems Inc., CHSPC LLC, Brightline, Imagine360, and Intellihartx LLC. The...
Arizona Arthritis and Rheumatology Associates & Mon Health Report Phishing Incidents
Arizona Arthritis and Rheumatology Associates and Monongalia Health System have had email accounts compromised as a result of phishing attempts on their employees. Phishing typically involves the impersonation of trusted entities and social engineering to trick individuals into clicking a link in an email and disclosing their account credentials. Phishing is a leading cause of healthcare data breaches, including two of the top three healthcare data breaches in Q1, 2025. Arizona Arthritis and Rheumatology Associates Arizona Arthritis and Rheumatology Associates (AARA) was affected by a phishing attack that saw several employee Office 365 accounts accessed by unauthorized individuals on March 3, 2025. The compromised accounts were detected within hours of the unauthorized access and secured by changing the compromised passwords. AARA said employees were notified about the phishing attempts to prevent further account compromises, additional phishing awareness training has also been provided to the workforce to help the staff identify phishing attempts, and new software has been...
HIPAA Compliance for Software Development
HIPAA compliance for software development is an important consideration for vendors and service providers who intend to develop or provide software for the healthcare and health insurance industries that will be used to create, receive, store, or transmit Protected Health Information. However, software HIPAA compliance is rarely the only consideration. When software is developed or provided for use in the healthcare and health insurance industries, there are two factors that determine whether HIPAA compliance for software development is necessary. Will the software be used by a HIPAA covered entity or business associate? If so, will the software be used to create, receive, store, or transmit Protected Health Information (PHI)? If the answer to both of these questions is “yes”, it is then necessary to determine the degree of software HIPAA compliance. For example, if the software has transient access to PHI, it will only be necessary for it to have capabilities that protect the confidentiality, integrity, and availability of PHI in transit, and that support end user compliance with...



