HHS Issues RFI Seeking Input on AI Tools and Methodologies for Healthcare Fraud Prevention
The U.S. Department of Health and Human Services (HHS) Centers for Medicare and Medicaid Services (CMS) plans to use artificial intelligence (AI) tools to identify fraudulent claims before they are paid. While estimates of total losses from healthcare fraud vary, around $60 billion is thought to be lost to Medicare fraud each year. In 2023, the HHS Office of Inspector General (HHS-OIG), the primary agency responsible for tackling Medicare and Medicaid fraud, identified more than $100 billion in improper payments across the Medicare and Medicaid programs. Estimates suggest that between 3% and 10% of total healthcare spending is being lost to fraud. While HHS-OIG, in conjunction with the Department of Justice and the CMS, investigates fraud and prosecutes fraudsters, only a fraction of fraudulently paid funds is recovered. In a February 25, 2026, press release, Vice President J.D. Vance, Secretary of Health and Human Services (HHS) Robert F. Kennedy, Jr., and CMS Administrator Dr. Mehmet Oz announced some of the new steps that are being taken to crack down on healthcare fraud as part...
Soaring Insider Breach Costs Driven by Shadow AI Use
On average, businesses with 500 or more employees are losing an average of $19.5 million a year due to insider incidents, up 20% since 2023, according to the Cost of Insider Risks 2026 Report from DTEX, a provider of risk-adaptive security and behavioral intelligence. The highest insider costs were in the healthcare and pharmaceutical industries, which averaged $28.8 million in annual losses per company. The report is based on independent research conducted by the Ponemon Institute on organizations in North America, EMEA, and Asia-Pacific with between 500 and 75,000 employees. The research includes interviews with 8,750 IT and IT security professionals in 354 organizations that experienced one or more material insider events. Organizations represented in the data experienced almost 7,500 insider incidents, with an average of 25 incidents per company. DTEX breaks down insider incidents into three categories: malicious, non-malicious, and outsmarted. Malicious insider incidents include employees causing harm through espionage, sabotage, workplace violence, unauthorized disclosures,...
Rebound Orthopedics & Neurosurgery Pays $2.5 Million to Settle Data Breach Lawsuit
Rebound Orthopedics & Neurosurgery, a Vancouver, WA-based orthopedic and neurosurgery practice, has agreed to pay $2,500,000 to settle a class action lawsuit over a February 2024 security incident involving unauthorized access to the protected health information of 426,536 patients. Data compromised in the incident included names, dates of birth, medical information, health insurance information, Social Security numbers, financial account information, driver’s license numbers, and passport numbers. The affected patients started to be notified on April 15, 2024, and the first class action lawsuit related to the data breach was filed on February 7, 2025, in the Superior Court of the State of Washington, Clark County. A further five class action lawsuits were filed by other affected individuals, which were consolidated in the same court – Cooper, et al. v. Rebound Orthopedics & Neurosurgery P.C. The consolidated lawsuit alleged that Rebound Orthopedics & Neurosurgery was at fault, as reasonable and appropriate cybersecurity measures had not been implemented prior to...
Carolina Foot & Ankle Associates Notifies Patients About December 2025 Cyberattack
Cyberattacks and data breaches have been announced by the healthcare providers Carolina Foot & Ankle Associates, New Age Dermatology, and Marin Cancer Care. Carolina Foot & Ankle Associates The North Carolina podiatry practice, Carolina Foot & Ankle Associates, is notifying patients that some of their personal and protected health information was exposed in a December 2025 cybersecurity incident. The incident was detected on December 8, 2025, when it experienced a network disruption. Third-party cybersecurity experts were engaged to investigate the incident and confirmed that an unauthorized third party had accessed its network and exfiltrated files containing patient data. The file review has recently been completed, and confirmed that patient data had been compromised, including first and last names, phone numbers, dates of birth, medical record numbers, health insurance information, diagnostic/CPT codes, and dates of service. The types of data involved varied from individual to individual. Carolina Foot & Ankle Associates said Social Security numbers and...
Center for Advanced Eye Care; Southwest C.A.R.E Center; Evergreen Healthcare Group Announce Data Breaches
The Center for Advanced Eye Care in Pennsylvania/Delaware, Southwest C.A.R.E Center in New Mexico, and Evergreen Healthcare Group in Washington have notified patients about cybersecurity incidents involving unauthorized access to patient information. The Center for Advanced Eye Care The Center for Advanced Eye Care, a provider of ophthalmology services in Pennsylvania and Delaware, has recently announced a security incident that involved unauthorized access to patient data. Suspicious activity was identified within its legacy environment on December 16, 2025. The affected systems were secured, and an investigation was launched to determine the nature and scope of the activity. Assisted by third-party cybersecurity experts, The Center for Advanced Eye Care confirmed that protected health information within the legacy environment was accessed by an unauthorized third party and was stolen in the attack. The exact types of data involved have not been publicly disclosed at present, and the types of information involved have been redacted from the notices provided to state attorneys...



