Blackbaud SEC Filing Provides Further Information on Data Breach and Mitigation Costs
The number of victims reporting being impacted by the Blackbaud ransomware attack and data breach has continued to grow over the past few weeks, with the Department of Health and Human Services’ Office for Civil Rights breach portal continuing to list healthcare victims. Recent additions include Moffitt Cancer Center, OSF HealthCare System, and Geisinger, with those three entities reporting the incident as affecting a total of 276,600 individuals. While the total number of victims has not been disclosed by Blackbaud, at least 250 healthcare organizations, non-profits, and educational institutions are known to have been impacted, with healthcare organizations reporting the breach as affecting more than 10 million individuals. Unsurprisingly given the breach costs incurred by organizations and the number of individuals whose personal information has been exposed, Blackbaud is facing many class action lawsuits. At least 23 proposed class action lawsuits have been filed so far in the United States and Canada, according to its 2020 Q3 Quarterly Report filed with the U.S. Securities and...
Ascend Clinical and Alamance Skin Center Suffer Ransomware Attacks
Redwood City, CA-based Ascend Clinical, a provider of ESRD laboratory testing for independent dialysis providers, has announced it suffered a phishing attack that led to a ransomware attack in May 2020. Unusual system activity and file encryption were detected on or around May 31, 2020. Prompt action was taken to isolate the affected systems and an investigation was launched to determine the nature and scope of the incident. Assisted by a third-party security firm, Ascend Clinical determined access to its systems was gained when an employee responded to a phishing email. Prior to the use of ransomware, the attackers accessed files that contained names, dates of birth, mailing addresses, and Social Security numbers. Steps have since been taken to strengthen its email security defenses to prevent similar attacks in the future. The breach report submitted to the HHS’ Office for Civil Rights indicates 77,443 individuals were affected by the incident. Alamance Skin Center Suffers Ransomware Attack The Greensboro-based health system, Cone Health, has suffered a ransomware attack that...
Wakefern Food Corporation Settles HIPAA Breach Case with NJ Attorney General for $235,000
Wakefern Food Corporation has agreed to pay $235,000 in civil financial penalties to resolve allegations of violations of federal and state laws related to a data breach involving the protected health information of 9,700 customers of two ShopRite supermarkets in Millville, New Jersey and Kingston, New York. In addition to the financial penalties, the settlement requires improvements to be made to data security practices. Wakefern Food Corporation is the parent company of Union Lake Supermarket, LLC, which owns the ShopRite store in Millville and ShopRite Supermarkets, Inc., which owns the ShopRite store in Kingston, NY. In 2016, Wakefern replaced electronic devices that were used to collect customer signatures and purchase information at the two locations. The old devices were disposed of in regular dumpsters without first destroying the devices or purging/clearing the stored data to ensure sensitive information could not be recovered. The devices contained the protected health information of 9,700 customers of the two stores including names, contact information, zip codes,...
Email Security Breaches Reported by Arkansas Otolaryngology Center and Centerstone
Centerstone, a provider of mental health and substance use disorder treatment services in Indiana, Illinois, Tennessee, and Florida, has discovered an employee’s email account has been accessed by an unauthorized individual. Unusual activity was detected in the email account and it was immediately secured. The investigation revealed the email account had been accessed between December 12, 2019 and December 16, 2019; however, it took until August 25, 2020 for the investigation to confirm that protected health information was contained within the account. The protected health information of patients was exposed in the incident, including names, dates of birth, Social Security numbers, driver’s license numbers, state identification card numbers, medical diagnoses, treatment information, Medicaid and Medicare information, and health insurance information. The types of exposed data varied from patient to patient. Some employee information was also potentially compromised. Notification letters were sent to affected patients on Thursday, October 22, 2020 and information has been provided...
ONC Extends Deadline for Compliance with its Information Blocking and Interoperability Rule
The deadline for compliance with the information blocking and health IT certification requirements of the 21st Century Cures Act have been extended due to the ongoing COVID-19 pandemic. On October 29, 2020, the US Department of Health and Human Services’ (HHS) Office of the National Coordinator for Health IT (ONC) announced the release of an interim final rule with comment period that extended the compliance dates and timeframes for meeting certain information blocking and Conditions and Maintenance of Certification (CoC/MoC) requirements. The ONC’s Cures Act Final Rule, released on March 9, 2020, defined exceptions to the information blocking provision of the 21st Century Cures Act and adopted new Health IT certification requirements which, through the use of application programming interfaces (APIs), would enhance patients’ access to their own health data through their smartphones at no cost. Compliance deadlines were set for 2020, but health IT stakeholders expressed concern about meeting the deadlines due to the COVID-19 pandemic. On April 21, 2020, ONC announced that it would...



