CaptureRx Proposes $4.75 Million Settlement to End Data Breach Litigation
CaptureRx has proposed a $4.75 million settlement to resolve claims related to a 2021 data breach that affected approximately 2.4 million patients of its healthcare provider clients. CaptureRx is a healthcare administrative service provider that helps hospitals manage their 340B drug discount programs. On February 6, 2021, CapturRx discovered unauthorized individuals had gained access to its network and used ransomware to encrypt its files. On March 19, 2021, CaptureRx determined files containing patient data had been compromised, and affected clients started to be notified on March 30, 2021. CaptureRx publicly announced the data breach but did not initially disclose how many individuals had been affected. The breach was reported to the HHS’ Office for Civil Rights in May 2021 by CaptureRx as affecting 1,656,569 individuals, although several of its healthcare provider clients reported the breach themselves. Several class action lawsuits were proposed that alleged CaptureRX was negligent for failing to implement and maintain appropriate safeguards to protect patient data and other...
Hackers Gained Access to Files Containing the PHI of 115,670 South Shore Hospital Patients
Chicago’s South Shore Hospital has started notifying 115,670 current and former patients about a December 2021 cyberattack on its network. Suspicious activity was identified on its network on December 10, 2021, and prompt action was taken to contain the incident. Emergency protocols were implemented to ensure care could continue to be safely provided to patients. South Shore Hospital engaged a team of third-party computer forensics experts to investigate the security breach and determine whether patient information was accessed or stolen. The investigation confirmed that the attackers gained access to parts of its network where files were stored that contained the protected health information of patients and employee data, including names, addresses, dates of birth, Social Security numbers, health insurance information, medical information, diagnoses, health insurance policy numbers, Medicare/Medicaid information, and financial information. South Shore Hospital said it will be implementing additional security measures to better protect its network against cyberattacks, including...
Bipartisan Legislation Introduced to Modernize Health Data Privacy Laws
Healthcare privacy laws in the United States are due an update to bring them into the modern age to ensure individually identifiable health information is protected no matter how it is collected and shared. The Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule is now more than 2 decades old, and while the Department of Health and Human Services (HHS) has proposed updates to the HIPAA Privacy Rule that are due to be finalized this year, even if the proposed HIPAA Privacy Rule changes are signed into law, there will still be regulatory gaps that place health data at risk. The use of technology for healthcare and health information has grown in a way that could not be envisaged when the Privacy Rule was signed into law. Health information is now being collected by health apps and other technologies, and individuals’ sensitive health information is being shared with and sold by technology companies. The HIPAA Privacy and Security Rules introduced requirements to ensure the privacy and security of health data, but HIPAA only applies to HIPAA-covered entities –...
CISA, FBI, NSA Warn of Increased Threat of Ransomware Attacks on Critical Infrastructure
A joint security advisory has been issued by cybersecurity agencies in the United States, United Kingdom, and Australia, warning about the increased globalized threat of ransomware attacks and the elevated risk of targeted attacks on critical infrastructure entities. The Cybersecurity and Infrastructure Security Agency (CISA), Federal Bureau of Investigation (FBI), and the National Security Agency (NSA) have observed high-impact ransomware attacks against 14 of the 16 critical infrastructure sectors in 2021, including government facilities, financial services, transportation systems, water and wastewater systems, energy, and healthcare and public health. The UK’s National Cyber Security Centre (NCSC-UK) says ransomware is now the biggest cyber threat faced by the country, with education the most targeted sector. There has also been an increase in attacks on businesses, charities, law firms, local government public services, and the healthcare sector. The Australian Cyber Security Centre (ACSC) says ransomware gangs are targeting critical infrastructure sectors including...
Inmediata Agrees to Settle Class Action Lawsuit for $1.125 Million
Inmediata, a provider of clearinghouse services and business process software, has agreed to settle a class action lawsuit filed by victims of its 2019 security breach that exposed the protected health information of more than 1.56 million individuals. In January 2019, Inmediata discovered a misconfiguration on its website resulted in internal web pages containing electronic protected health information (ePHI) being accessible over the Internet. The web pages were indexed by the search engines and could be found in the search engine listings. The exposed information was mostly limited to names, addresses, dates of birth, gender, and medical claim information. A small percentage of individuals also had their Social Security numbers exposed. When sending notification letters to affected individuals, errors were made by its mailing vendor that resulted in letters being sent to incorrect individuals. Some individuals reported receiving multiple notification letters, with some containing the names of other patients. The notification letters were sent in April 2019, three months after...



