The HIPAA Risk Analysis: Guidance and Tools for HIPAA Covered Entities and Business Associates
Oct17

The HIPAA Risk Analysis: Guidance and Tools for HIPAA Covered Entities and Business Associates

The HIPAA Risk analysis is a foundational element of HIPAA compliance, yet it is something that many healthcare organizations and business associates get wrong. That places them at risk of experiencing a costly data breach and a receiving a substantial financial penalty for noncompliance. The HIPAA Risk Analysis The administrative safeguards of the HIPAA Security Rule require all HIPAA-covered entities to “conduct an accurate and thorough assessment of the potential risks and vulnerabilities to the confidentiality, integrity, and availability of electronic protected health information.” See 45 C.F.R. § 164.308(u)(1)(ii)(A). The risk analysis is a foundational element of HIPAA compliance and is the first step that must be taken when implementing safeguards that comply with and meet the standards and implementation specifications of the HIPAA Security Rule. If a risk analysis is not conducted or is only partially completed, risks are likely to remain and will therefore not be addresses through an organization’s risk management process – See § 164.308(u)(1)(ii)(B) – and will not be...

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$16 Million Anthem HIPAA Breach Settlement Takes OCR HIPAA Penalties Past $100 Million Mark
Oct16

$16 Million Anthem HIPAA Breach Settlement Takes OCR HIPAA Penalties Past $100 Million Mark

OCR has announced that an Anthem HIPAA breach settlement has been reached to resolve potential HIPAA violations discovered during the investigation of its colossal 2015 data breach that saw the records of 78.8 million of its members stolen by cybercriminals. Anthem has agreed to pay OCR $16 million and will undertake a robust corrective action plan to address the compliance issues discovered by OCR during the investigation. The previous largest ever HIPAA breach settlement was $5.55 million, which was agreed with Advocate Health Care in 2016. “The largest health data breach in U.S. history fully merits the largest HIPAA settlement in history,” said OCR Director Roger Severino. Anthem Inc., an independent licensee of the Blue Cross and Blue Shield Association, is America’s second largest health insurer. In January 2015, Anthem discovered cybercriminals had breached its defenses and had gained access to its systems and members’ sensitive data. With assistance from cybersecurity firm Mandiant, Anthem determined this was an advanced persistent threat attack – a continuous and targeted...

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Most Common Healthcare Phishing Emails Identified
Oct16

Most Common Healthcare Phishing Emails Identified

A new report by Cofense has revealed the most common healthcare phishing emails and which messages are most likely to attract a click. The 2018 Cofense State of Phishing Defense Report provides insights into susceptibility, resiliency, and responses to phishing attacks, highlights how serious the threat from phishing has become, and how leading companies are managing risk. The high cost of phishing has been highlighted this week with the announcement of a settlement between the HHS’ Office for Civil Rights and Anthem Inc. The $16 million settlement resolved violations of HIPAA Rules that led to Anthem’s 78.8 million record data breach of 2015. That cyberattack started with spear phishing emails. In addition to the considerable cost of breach remediation, Anthem also settled a class action lawsuit related to the breach for $115 million. Even an average sized breach now costs $3.86 million to resolve (Ponemon/IBM Security, 2018). Previous Cofense research suggests that 91% of all data breaches start with a phishing email and research by Verizon suggests 92% of malware infections...

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Aetna Settles HIPAA Violation Case with State AGs
Oct15

Aetna Settles HIPAA Violation Case with State AGs

In 2017, errors occurred with two Aetna mailings that resulted in the impermissible disclosure of the protected health information of plan members, including HIV statuses and AFib diagnoses. A class action lawsuit was filed on behalf of the victims of the HIV status breach which was settled for $17 million in January. Now Aetna has reached settlements with the attorneys general for New Jersey, Connecticut, and the District of Columbia to resolve the alleged HIPAA violations discovered during an investigation into the privacy breaches. The first mailing was sent on July 28, 2017 by an Aetna business associate. Over-sized windowed envelopes were used for the mailing, through which it was possible to see the names and addresses of plan members along with the words “HIV Medications.” Approximately 12,000 individuals received the mailing. In September, a second mailing was sent on behalf of Aetna to 1,600 individuals. This similarly resulted in an impermissible disclosure of PHI. In addition to names and addresses, the logo of an IMPACT AFib study was visible, which suggested the...

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HSS Secretary Issues Limited Waiver of HIPAA Penalties Following Declaration of Public Health Emergency in Florida and Georgia
Oct12

HSS Secretary Issues Limited Waiver of HIPAA Penalties Following Declaration of Public Health Emergency in Florida and Georgia

Following the presidential declaration of public health emergencies in the states of Florida and Georgia in the wake of hurricane Michael, secretary of the Department of Health and Human Services (HHS) Alex Azar has followed suit in both states and has exercised his authority to waive HIPAA sanctions and penalties for certain provisions of the HIPAA Privacy Rule in the disaster areas. The HHS announced the public health emergency in Florida on October 9, and Georgia on October 11. The HIPAA Privacy Rule does permit healthcare providers to share protected health information during disasters to assist patients and ensure they receive the care they need, including sharing information with friends, family members and other individuals directly involved in a patient’s care. The HIPAA Privacy Rule allows the sharing of PHI for public health activities and to prevent or reduce a serious and imminent threat to health or safety. HIPAA-covered entities are also permitted to share information with disaster relief organizations that have been authorized by law to assist with disaster relief...

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Hospitals Failing to Fully Comply with HIPAA Requirement for Providing Patients with Copies of Medical Records
Oct10

Hospitals Failing to Fully Comply with HIPAA Requirement for Providing Patients with Copies of Medical Records

The HIPAA Privacy Rule gave patients the right to obtain a copy of their medical records from their healthcare providers. Under HIPAA, copies of medical records should be provided to patients as soon as possible, but no later than 30 days from when the request is made. Even though compliance with the HIPAA Privacy Rule has been mandatory since April 14, 2003, there have been several cases of hospitals failing to provide patients with copies of their medical records. In 2011, the Department of Health and Human Services’ Office for Civil Rights (OCR) sent a message to healthcare providers about this aspect of HIPAA compliance when it issued a $4,300,000 civil monetary penalty to Cignet Health of Prince George’s County. Even though it has now been 15 years since compliance with the HIPAA Privacy Rule became mandatory, there is still widespread noncompliance when it comes to providing patients with copies of their medical records. According to a new study published in JAMA Network Open, healthcare providers are not providing patients with copies of their full medical records,...

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Cybersecurity Best Practices for Device Manufacturers and Healthcare Providers to be Issued by HSCC
Oct08

Cybersecurity Best Practices for Device Manufacturers and Healthcare Providers to be Issued by HSCC

The Healthcare & Public Health Sector Coordinating Council (HSCC) has announced it will shortly issue voluntary cybersecurity best practices for medical device manufacturers and healthcare provider organizations to help them improve their security posture. HSCC will also publish a voluntary curriculum that can be adopted by medical schools to help them train clinicians how to manage electronic health records, medical devices, and IT systems in a secure and responsible way. The announcement coincides with National Cyber Security Awareness Month and includes an update on the progress that has been made over the past 12 months and the work that the HSCC still intends to complete. HSCC explained that the global cyberattacks of 2017 involving WannaCry and NotPetya malware served as a wake-up call to the healthcare industry and demonstrated the potential harm that could be caused if an attack proved successful. Many large companies were crippled by the attacks for weeks. Fortunately, the healthcare industry in the United States escaped the attacks relatively unscathed, although the...

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FDA Issues Medical Device Cybersecurity Regional Incident Preparedness and Response Playbook
Oct03

FDA Issues Medical Device Cybersecurity Regional Incident Preparedness and Response Playbook

On October 1, 2018, the U.S. Food and Drug Administration released a Medical Device Cybersecurity Regional Incident Preparedness and Response Playbook for healthcare delivery organizations to help them prepare for and respond to medical device cybersecurity incidents. The playbook is intended to help healthcare delivery organizations develop a preparedness and response framework to ensure they are prepared for medical device security incidents, can detect and analyze security breaches quickly, contain incidents, and rapidly recover from attacks. The playbook was developed by MITRE Corp., which worked closely with the FDA, healthcare delivery organizations, researchers, state health departments, medical device manufacturers and regional healthcare groups when developing the document. The past 12 months have seen many vulnerabilities identified in medical devices which could potentially be exploited by hackers to gain access to healthcare networks, patient health information, or to cause harm to patients. While the FDA has not received any reports to suggest an attack has been...

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Healthcare Industry Highly Susceptible to Phishing Attacks and Lags Other Industries for Phishing Resiliency
Oct02

Healthcare Industry Highly Susceptible to Phishing Attacks and Lags Other Industries for Phishing Resiliency

The healthcare industry is extensively targeted by phishers who frequently gain access to healthcare data stored in email accounts. In some cases, those email accounts contain considerable volumes of highly sensitive protected health information. Phishing is one of the leading causes of healthcare data breaches. In August 2018, Augusta University Healthcare System announced that it was the victim of a phishing attack that saw multiple email accounts compromised. The breached email accounts contained the PHI of 417,000 patients. The incident stood out due to the number of individuals impacted by the breach, but it was just one of several healthcare organizations to fall victim to phishing attacks in August. Data from the HHS’ Office for Civil Rights shows email is the most common location of breached PHI. In July, 14 healthcare data breaches out of 28 involved email, compared to 6 network server PHI breaches – The second most common location of breached PHI. It was a similar story in May and June with 9 and 11 email breaches reported respectively. Cofense Research Shows Healthcare...

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NIST Releases Guidance on Managing IoT Cybersecurity and Privacy
Oct01

NIST Releases Guidance on Managing IoT Cybersecurity and Privacy

The National Institute of Standards and Technology (NIST) has released a draft guidance document that aims to help federal agencies and other organizations understand the challenges associated with securing Internet of Things (IoT) devices and manage the cybersecurity and privacy risks that IoT devices can introduce. The guidance document – Considerations for Managing Internet of Things (IoT) Cybersecurity and Privacy Risks (NIST IR 8228) is the first in a series of new publications address cybersecurity and privacy together and the document is the foundation for a series of further publications that will explore IoT device cybersecurity and privacy in more detail. “IoT is a rapidly evolving and expanding collection of diverse technologies that interact with the physical world. Many organizations are not necessarily aware of the large number of IoT devices they are already using and how IoT devices may affect cybersecurity and privacy risks differently than conventional information technology devices,” explained NIST. In the guidance document, NIST identifies three high-level...

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Study Reveals 70% Increase in Healthcare Data Breaches Between 2010 and 2017
Sep28

Study Reveals 70% Increase in Healthcare Data Breaches Between 2010 and 2017

There has been a 70% increase in healthcare data breaches between 2010 and 2017, according to a study conducted by two physicians at the Massachusetts General Hospital Center for Quantitative Health. The study, published in the Journal of the American Medical Association on September 25, involved a review of 2,149 healthcare data breaches reported to the Department of Health and Human Services’ Office for Civil Rights between 2010 and 2017. “While we conduct scientific programs designed to recognize the enormous research potential of large, centralized electronic health record databases, we designed this study to better understand the potential downsides for our patients – in this case the risk of data disclosure,” said Dr. Thomas McCoy Jr, director of research at Massachusetts General Hospital’s Center for Quantitative Health in Boston and lead author of the study. Every year, with the exception of 2015, the number of healthcare data breaches has increased, rising from 199 breaches in 2010 to 344 breaches in 2017. Those breaches have resulted in the loss, theft, exposure, or...

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HIPAA Quiz Launched by Compliancy Group
Sep26

HIPAA Quiz Launched by Compliancy Group

A new HIPAA Quiz has been launched by the Compliancy Group, which serves as a quick and easy free tool to assess the current state of HIPAA compliance in an organization.   Healthcare organizations that have implemented policies and procedures to comply with the Health Insurance Portability and Accountability Act (HIPAA) Rules may think that they are fully compliant with all provisions of the HIPAA Privacy, Security, and Breach Notification Rules. However, HHS’ Office for Civil Rights (OCR) compliance audits and investigations into data breaches and complaints often reveal certain requirements of HIPAA have been missed or misinterpreted. OCR investigates all breaches of more than 500 records and so far in 2018, six financial penalties have been issued to HIPAA covered entities to resolve HIPAA violations. The average settlement/civil monetary penalty in 2018 is $1,491,166. State attorneys general also investigate data breaches and complaints and can also issue fines for noncompliance with HIPAA Rules. There have been five fines issued by state attorneys general in 2018 to resolve...

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UMass Memorial Health Care Pays $230,000 to Resolve Alleged HIPAA Violations
Sep24

UMass Memorial Health Care Pays $230,000 to Resolve Alleged HIPAA Violations

Mass Memorial Health Care has been fined $230,000 by the Massachusetts attorney general for HIPAA failures related to two data breaches that exposed the protected health information (PHI) of more than 15,000 state residents. A lawsuit was filed against UMass Memorial Health Care in which attorney general Maura Healey claimed UMass Memorial Medical Group Inc., and UMass Memorial Medical Center Inc., failed to implement sufficient measures to protect patients’ sensitive health information. In two separate incidents, employees accessed and copied patient health information without authorization and used that information to open cell phone and credit card accounts in the victims’ names. It was also alleged that UMass Memorial Medical Group Inc., and UMass Memorial Medical Center Inc., were both aware of employee misconduct, yet failed to properly investigate complaints related to data breaches and discipline the employees concerned in a timely manner. Both entities also failed to ensure that patients’ PHI was properly safeguarded. These failures violated Massachusetts data security...

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August 2018 Healthcare Data Breach Report
Sep21

August 2018 Healthcare Data Breach Report

August was a much better month for the healthcare industry with fewer data breaches reported than in July. In August, 28 healthcare data breaches were reported to the HHS’ Office for Civil Rights, a 17.86% month-over-month reduction in data breaches. There was also a major reduction in the number of healthcare records that were exposed or stolen. In August, 623,688 healthcare records were exposed or stolen – A 267.56% reduction from August, when 2,292,522 healthcare records were breached. Causes of Healthcare Data Breaches in August 2018 Hacking incidents dominated the breach reports in August, accounting for 53.57% of all reported data breaches and 95.73% of all records exposed or disclosed in August. Eight of the top ten breaches were the result of hacks, malware, or ransomware attacks. Insider breaches are a major problem in the healthcare industry, more so than other verticals. In August there were nine insider breaches – 32.14% of the healthcare data breaches in August. Those breaches involved the unauthorized access or impermissible disclosure of 18,488 healthcare...

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$999,000 in HIPAA Penalties for Three Hospitals for Boston Med HIPAA Violations
Sep20

$999,000 in HIPAA Penalties for Three Hospitals for Boston Med HIPAA Violations

Three hospitals that allowed an ABC film crew to record footage of patients as part of the Boston Med TV series have been fined $999,000 by the Department of Health and Human Services’ Office for Civil Rights (OCR) for violating Health Insurance Portability and Accountability Act (HIPAA) Rules. This is the second HIPAA violation case investigated by OCR related to the Boston Med TV series. On April 16, 2016, New York Presbyterian Hospital settled its HIPAA violation case with OCR for $2.2 million to resolve the impermissible disclosure of PHI to the ABC film crew during the recording of the series and for failing to obtain consent from patients. Fines for Boston Medical Center, Brigham and Women’s Hospital, & Massachusetts General Hospital Boston Medical Center (BMC) settled its HIPAA violations with OCR for $100,000. OCR investigators determined that BMC had impermissibly disclosed the PHI of patients to ABC employees during production and filming of the TV series, violating 45 C.F.R. § 164.502(a). Brigham and Women’s Hospital (BWH) settled its HIPAA violations...

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California Consumer Privacy Act Amendment Confirms HIPAA-Covered Entities Exempt
Sep19

California Consumer Privacy Act Amendment Confirms HIPAA-Covered Entities Exempt

In June 2018, the legislature in California passed the California Consumer Privacy Act (CCPA) which introduced major changes to state law to protect the privacy of consumers. CCPA introduced new privacy protections and rights for consumers, several of which are similar to those introduced in Europe in the General Data Protection Regulation (GDPR). The CCPA does not go as far as GDPR and only applies to for-profit companies that hold the data of more than 50,000 individuals, but many of the new rights are similar, including the right to request access to personal data stored by a business, the right to be informed about the data that will be collected, the right to be informed whether personal data will be sold or disclosed, the right to have personal data deleted and to prevent personal data from being sold. The CCPA has been heavily criticized, especially by tech firms such as Facebook, Google and PayPal. A 38-page letter was sent to lawmakers in California by 38 trade groups who have voiced considerable concerns over the requirements of the CCPA, including sections of the law...

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Final Participation Request: Emergency Preparedness Survey
Sep17

Final Participation Request: Emergency Preparedness Survey

Do you want to help determine the state of emergency preparedness in healthcare? Over 100 HIPAA Journal readers have already participated in this survey and this is the last chance to contribute by completing this short anonymous survey on emergency preparedness and security communications trends. This is an opportunity for you to find out how your healthcare industry colleagues nationwide communicate in emergency preparedness and security matters and where they expect to take these practices next. After you complete the survey, you will have the chance to enter into a raffle for a $150 gift card from the survey sponsor (RaveMobileSafety). If you provide your email address, you’ll receive the published (anonymous) results before they are released. HIPAA Journal will eventually publish the results. Note: HIPAA Journal is not conducting this survey and HIPAA Journal does not receive any payment for promoting this survey.  If your organization is running a survey that is interesting to healthcare professionals, you can contact us with the...

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Texas Nurse Fired for Social Media HIPAA Violation
Sep13

Texas Nurse Fired for Social Media HIPAA Violation

A nurse at a Texas children’s hospital has been fired for violating Health Insurance Portability and Accountability Act (HIPAA) Rules by posting protected health information on a social media website. The pediatric ICU/ER nurse worked at Texas Children’s Hospital and posted a series of comments on Facebook about a rare case of measles at the hospital. The nurse was an anti-vaxxer and posted about the experience of seeing a boy at the hospital suffering from the disease – a disease that could have been prevented through vaccination. Her comments explained how the disease was much worse that she expected it to be, having not encountered anyone with the measles in the past.  She explained that it was a “rough” experience seeing the boy suffering from the disease. She also explained in one of her posts, “I think it’s easy for us non-vaxxers to make assumptions, but most of us have never and will never see one of these diseases,” according to the Houston Chronicle, which obtained screenshots of her Facebook posts. “By no means have I changed my vax stance, and I never will. But this...

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Hurricane Florence: OCR Issues Guidance on Appropriate Sharing of Health Information
Sep13

Hurricane Florence: OCR Issues Guidance on Appropriate Sharing of Health Information

On Wednesday, September 12, 2018, President Trump approved a request for a federal emergency declaration in the state of Virginia and made FEMA resources available for the state. The Secretary of the U.S. Department of Health and Human Services, Alex Azar, has also declared a Public Health Emergency in Virginia, North Carolina, and South Carolina. The Secretarial declaration eases certain HIPAA restrictions and helps Centers for Medicare & Medicaid Services’ (CMS) beneficiaries and their healthcare providers prepare for the possible impact of Hurricane Florence and provides greater flexibility to meet emergency health needs. During severe disasters and public emergencies healthcare providers face increased challenges and may struggle to continue to meet all requirements of the HIPAA Privacy Rule. In emergency situations, such as during hurricanes, the HIPAA Privacy Rule still applies; however, Alex Azar’s declaration of a Public Health Emergency means certain provisions of the Privacy Rule have been relaxed under the Project Bioshield Act of 2004 (PL 108-276) and section...

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NIST to Launch Privacy Framework to Help Companies Protect the Privacy of Customers and Employees
Sep12

NIST to Launch Privacy Framework to Help Companies Protect the Privacy of Customers and Employees

In 2014, the National Institute of Standards and Technology (NIST) published its Cybersecurity Framework – A framework of computer security guidance to help private sector companies assess their security policies and improve their ability to prevent, detect, and respond to cyberattacks. The Framework has been a huge success. Figures from Gartner suggest it has already been adopted by 30% of companies, and adoption of the Framework is mandatory for all federal agencies. Now NIST plans to start working on a new Framework to help companies protect the privacy of employees and customers in what has become an increasingly connected and complex environment. The NIST Privacy Framework will be a voluntary enterprise-level tool that will detail privacy outcomes and approaches to help organizations develop strategies for implementing flexible privacy protection solutions. The aim is to ensure that individuals can benefit from the use of innovative technologies such as IoT an AI, with the confidence that their privacy will be protected. Adopting the Privacy Framework will help organizations...

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Medical Records from New Mexico Hospital Found Scattered in Street
Sep07

Medical Records from New Mexico Hospital Found Scattered in Street

The New Mexico Department of Health is currently investigating how the private medical records of some of its patients came to fall from a truck during transportation from the hospital to a secure storage facility. The records came from Turquoise Lodge Hospital, a rehabilitation center run by the New Mexico Department of Health that specializes in the treatment of parents and pregnant women who are recovering from substance abuse. The hospital had arranged for patients’ medical records to be collected and transported to a new location for storage. The paperwork was collected from the hospital on Thursday August 30; however, during transit some of those records fell out of the delivery truck onto a busy Albuquerque street. KRQE News 13 sent reporters to the scene who discovered medical records strewn along Avenida Cesar Chavez at I-25. Some of the paperwork had been collected by members of the public. The paperwork contained highly sensitive personally identifiable information (PII) and protected health information (PHI), including patients’ names, their medical histories, billing...

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Healthcare Organizations Reminded of Importance of Securing Electronic Media and Devices Containing ePHI
Sep06

Healthcare Organizations Reminded of Importance of Securing Electronic Media and Devices Containing ePHI

In its August 2018 cybersecurity newsletter, the Department of Health and Human Services’ Office for Civil Rights has reminded HIPAA-covered entities of the importance of implementing physical, technical, and administrative safeguards to ensure the confidentiality, integrity, and availability of electronic protected health information (ePHI) that is processed, transmitted, or stored on electronic media and devices. Electronic devices such as desktop computers, laptops, servers, smartphones, and tablets play a vital role in the healthcare, as do electronic media such as hard drives, zip drives, tapes, memory cards, and CDs/DVDs. However, the portability of many of those devices/media means they can easily be misplaced, lost, or stolen. Physical controls are therefore essential. Anyone with physical access to electronic devices or media, whether healthcare employees or malicious actors, potentially have the ability to view, change, or delete data. Device configurations could be altered or malicious software such as ransomware or malware could be installed. All of these actions...

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NY Attorney General Fines Arc of Erie County $200,000 for Security Breach
Sep04

NY Attorney General Fines Arc of Erie County $200,000 for Security Breach

The Arc of Erie County has been fined $200,000 by the New York Attorney General for violating HIPAA Rules by failing to secure the electronic protected health information (ePHI) of its clients. In February 2018, The Arc of Erie County, a nonprofit social services agency and chapter of the The Arc Of New York, was notified by a member of the public that some of its clients’ sensitive personal information was accessible through its website. The information could also be found through search engines. The investigation into the security breach revealed sensitive information had been accessible online for two and a half years, from July 2015 to February 2018 when the error was corrected. The forensic investigation into the security incident revealed multiple individuals from outside the United States had accessed the information on several occasions. The webpage should only have been accessible internally by staff authorized to view ePHI and should have required a username and password to be entered before access to the data could be gained. In total, 3,751 clients in New York had...

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ICS-CERT Issues Advisory After Nine Vulnerabilities Discovered in Philips E-Alert Units
Sep03

ICS-CERT Issues Advisory After Nine Vulnerabilities Discovered in Philips E-Alert Units

The Department of Homeland Security’s Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) has issued a further advisory about Philips healthcare devices after nine vulnerabilities were self-reported to the National Cybersecurity & Communications Integration Center (NCCIC) by the Amsterdam-based technology company. This is the fourth advisory issued by ICS-CERT in the past month. Previous advisories have been issued over cybersecurity vulnerabilities in its central patient monitoring system – Philips IntelliVue Information Center iX (1 vulnerability), Philips PageWriter Cardiographs (2 vulnerabilities), and Philips IntelliSpace Cardiovascular cardiac image and information management software (2 vulnerabilities). The latest advisory concerns nine vulnerabilities discovered in Philips eAlert units – These are non-medical devices that monitor imaging systems such as MRI machines to identify issues rapidly before they escalate. The devices are used by healthcare providers around the world. One of the vulnerabilities is rated critical, five are high severity,...

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NIST Finalizes Guidance on Securing Wireless Infusion Pumps in Healthcare Delivery Organizations
Aug31

NIST Finalizes Guidance on Securing Wireless Infusion Pumps in Healthcare Delivery Organizations

The National Cybersecurity Center of Excellence (NCCoE) and the National Institute of Standards and Technology (NIST) have released the final version of the NIST Cybersecurity Practice Guide for Securing Wireless Infusion Pumps in healthcare delivery organizations. Wireless infusion pumps are no longer standalone devices. They can be connected to a range of different healthcare systems, networks, and other devices and can be a major cybersecurity risk. If malicious actors are able to gain access to the wireless infusion pump ecosystem, settings could be altered on the pumps or malware could be installed that causes the devices to malfunction, resulting in operational and safety risks. An attack on the devices could result in patients coming to harm, protected health information could be exposed, and a compromise could result in disruption to healthcare services, reputation damage, and considerable financial costs. Securing wireless infusion pumps is a challenge. Standard cybersecurity solutions such as anti-virus software may affect the ability of the device to function correctly...

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Critical ‘Misfortune Cookie’ Flaw Identified in Qualcomm Life Capsule Datacaptor Terminal Server
Aug30

Critical ‘Misfortune Cookie’ Flaw Identified in Qualcomm Life Capsule Datacaptor Terminal Server

A code weakness in Qualcomm Life’s Capsule Datacaptor Terminal Server (DTS) has been discovered. The flaw could be remotely exploited allowing an attacker to obtain administrator level privileges and remotely execute code. The Qualcomm Life Capsule’s Datacaptor Terminal Server is a medical gateway device used by many U.S. hospitals to network their medical devices. The Datacaptor Terminal Server is used to connect respirators, bedside monitors, infusion pumps and other medical devices to the network. The Datacaptor Terminal Server has a web management interface which allows it to be operated and configured remotely. The flaw affects the Allegro RomPager embedded webserver (versions 4.01 through 4.34) which is included in all versions of Capsule DTS. The flaw could be exploited by an attacker by sending a specially crafted HTTP cookie to the web management portal, allowing arbitrary data to be written to the devices’ memory, ultimately permitting remote code execution. The exploit would require little skill to perform and requires no authentication. If exploited, availability of the...

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Mailing Error Resulted in Impermissible Disclosure of 19,570 Missouri Care Members’ PHI
Aug30

Mailing Error Resulted in Impermissible Disclosure of 19,570 Missouri Care Members’ PHI

An error in a mailing to Missouri Care members reminding them to book well-child visits has resulted in the accidental disclosure of the personal information of almost 20,000 children to other Missouri Care members. The personal information detailed in the letters was limited to children’s names, ages, and the names of their provider’s. Health information and other sensitive data was not exposed, so the potential for the information to be misused is low. However, out of an abundance of caution, parents and legal guardians of affected children have been advised to monitor their credit card bills and account statements for any suspicious activity and told not to respond to any email requests asking for further personal information. Free credit monitoring services have been offered to all individuals affected by the breach. WellCare Health Plans Inc., discovered the error on July 25, 2018 and launched an investigation to determine how the error occurred and the individuals that were impacted. The mailing had been sent to 19,570 individuals, although it is unclear how many of those...

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Critical Flaw Identified in BD Alaris Plus Medical Syringe Pumps
Aug28

Critical Flaw Identified in BD Alaris Plus Medical Syringe Pumps

A critical remotely exploitable flaw has been detected in BD Alaris Plus medical syringe pumps. The flaw would enable a threat actor to gain access to an affected medical syringe pump when it is connected to a terminal server via the serial port. If the flaw is exploited a threat actor could alter the intended function of the pump. The flaw is an improper authentication vulnerability. The software fails to perform authentication for functionality that requires a provable user identity. The flaw was identified by Elad Luz of CyberMDX who notified Becton, Dickinson and Company (BD), which in turn voluntarily reported the vulnerability to the National Cybersecurity & Communications Integration Center and the Industrial Control Systems Cyber Emergency Response Team (ICS-CERT). The latter issued an advisory about the vulnerability on August 23, 2018. The vulnerability affects version 2.3.6 of Alaris Plus medical syringe pumps and prior versions, specifically the Alaris GS, Alaris GH, Alaris CC, and Alaris TIVA products. The vulnerability has been assigned a CVSS v3 score of 9.4 out...

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July 2018 Healthcare Data Breach Report
Aug24

July 2018 Healthcare Data Breach Report

July 2018 was the worst month of 2018 for healthcare data breaches by a considerable distance. There were 33 breaches reported in July – the same number of breaches as in June – although 543.6% more records were exposed in July than the previous month. The breaches reported in July 2018 impacted 2,292,552 patients and health plan members, which is 202,859 more records than were exposed in April, May, and June combined. A Bad Year for Patient Privacy So far in 2018 there have been 221 data breaches of more than 500 records reported to the Department of Health and Human Services’ Office for Civil Rights. Those breaches have resulted in the protected health information of 6,112,867 individuals being exposed, stolen, or impermissibly disclosed. To put that figure into perspective, it is 974,688 more records than were exposed in healthcare data breaches in all of 2017 and there are still five months left of 2018. Largest Healthcare Data Breaches of 2018 (Jan-July) Entity Name Entity Type Records Exposed Breach Type UnityPoint Health Business Associate 1,421,107 Hacking/IT Incident CA...

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Phishing Attack on Legacy Health Results In Exposure of 38,000 Patients’ PHI
Aug21

Phishing Attack on Legacy Health Results In Exposure of 38,000 Patients’ PHI

Legacy Health has discovered an unauthorized individual has gained access to its email system and the protected health information (PHI) of approximately 38,000 patients. The Portland, OR-based health system operates two regional hospitals, four community hospitals, and 70 clinics in Oregon, Southwest Washington, and the and the Mid-Willamette Valley and is the second largest health system in the Portland Metro Area. The data breach was discovered on June 21, 2018, although the email accounts were first accessed by an unauthorized individual in May. Legacy Health determined that access was gained to the email accounts as a result of employees being duped by phishing emails. Email breaches can take a considerable amount of time to investigate. While tools are available to scan email accounts for protected health information, many of the emails in compromised accounts need to be individually checked, which can involve manual checks of hundreds of thousands of messages.  According to Legacy Health Spokesperson Kelly Love, “We’ve been moving at as fast a pace as we can to...

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Court Approves Anthem $115 Million Data Breach Settlement
Aug20

Court Approves Anthem $115 Million Data Breach Settlement

The $115 million settlement proposed by Anthem Inc., in 2017 to resolve the class action lawsuits filed by victims of its 78.8 million-record data breach in 2015 received final approval on Thursday, August 16. The Anthem cyberattack resulted in plan members’ names, dates of birth, health insurance information, Social Security numbers and other data elements stolen by cybercriminals. Several class-action lawsuits were filed in the wake of the breach, which were consolidated into a single lawsuit by the Judicial Panel for Multidistrict Litigation in June 2015. The case was assigned to the U.S District Court for the Northern District of California, where a large proportion of the class members reside. While 78.8 million individuals had protected health information (PHI) exposed when Anthem’s network was hacked, there are only 19.1 million members of the class action lawsuit, all of whom were able to demonstrate that their personal information was stored in the data center that was attacked by hackers. Following the data breach, Anthem offered breach victims 24 months of credit...

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417,000 Individuals Affected by Augusta University Health Phishing Attack
Aug17

417,000 Individuals Affected by Augusta University Health Phishing Attack

A serious data breach has been reported by Augusta University Health that has impacted an estimated 417,000 individuals including patients, faculty members and a limited number of students. Most of the patients affected by the breach had previously received medical services at Augusta University Medical Center or Children’s Hospital of Georgia, although patients from over 80 outpatient clinics in Georgia have also been affected and had their personally identifiable information (PII) and protected health information (PHI) exposed. A wide range of PII and PHI was exposed, including names, addresses, dates of birth, lab test results, diagnoses, medications, treatment information, dates of service, medical record numbers, surgical information, and health insurance details. Augusta University Health said only a small percentage of individuals had a driver’s license number or Social Security number exposed. The PII and PHI were saved in emails and email attachments. Augusta University Health said a data security incident was discovered on September 11, 2017 following a phishing attack on...

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ICS-CERT Warns of Vulnerabilities in Philips IntelliSpace Cardiovascular Products
Aug16

ICS-CERT Warns of Vulnerabilities in Philips IntelliSpace Cardiovascular Products

ICS-CERT has issued an advisory about two vulnerabilities that have been identified in Philips IntelliSpace Cardiovascular products, one of which has been given a high severity rating and could allow a threat actor to elevate privileges and gain full control of a vulnerable device. The improper privilege management vulnerability (CVE-2018-14787) is present in IntelliSpace Cardiovascular cardiac image and information management software version 2.x and earlier releases and Xcelera V4.1 and earlier versions. The vulnerability could not be exploited remotely. Local access is required, and an authenticated user would need to have write privileges. If exploited, privileges could be escalated and access gained to folders containing executables. Arbitrary code could be executed to give the attacker full control of the system. The vulnerability has been assigned a CVSS v3 severity score of 7.3. An unquoted search path or element vulnerability (CVE-2018-14789) is present in IntelliSpace Cardiovascular Version 3.1 and earlier versions and Xcelera Version 4.1 and earlier versions. This flaw...

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Lawmakers Accuse Oklahoma Department of Veteran Affairs of Violating HIPAA Rules
Aug13

Lawmakers Accuse Oklahoma Department of Veteran Affairs of Violating HIPAA Rules

The Oklahoma Department of Veteran Affairs has been accused of violating Health Insurance Portability and Accountability Act (HIPAA) Rules by three Democrat lawmakers, who have also called for two top Oklahoma VA officials to be fired over the incident. The alleged HIPAA violation occurred during a scheduled internet outage, during which VA medical aides were prevented from gaining access to veterans’ medical records. The outage had potential to cause major disruption and prevent “hundreds” of veterans from being issued with their medications. To avoid this, the Oklahoma Department of Veteran Affairs allowed medical aides to access electronic medical records using their personal smartphones. In a letter to Oklahoma Governor Mary Fallin, Reps. Brian Renegar, Chuck Hoskin, and David Perryman called for the VA Executive Director Doug Elliot and the clinical compliance director Tina Williams to be fired over the alleged HIPAA violation. They claimed Elliot and Williams “have little regard for, and knowledge of, health care,” and allowing medical aides to access electronic medical...

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At Least 3.14 Million Healthcare Records Were Exposed in Q2, 2018
Aug09

At Least 3.14 Million Healthcare Records Were Exposed in Q2, 2018

In total, there were 143 data breaches reported to the media or the Department of Health and Human Services’ Office for Civil Rights (OCR) in Q2, 2018 and the healthcare records of at least 3,143,642 patients were exposed, impermissibly disclosed, or stolen. Almost three times as many healthcare records were exposed or stolen in Q2, 2018 as Q1, 2018. The figures come from the Q2 2018 Breach Barometer Report from Protenus. The data for the report came from OCR data breach reports, data collected and collated by Databreaches.net, and proprietary data collected through the Protenus compliance and analytics platform, which monitors the tens of trillions of EHR access attempts by its healthcare clients. Q2 2018 Healthcare Data Breaches Month Data Breaches Records Exposed April 45 919,395 May 50 1,870,699 June 47 353,548   Q2, 2018 saw five of the top six breaches of 2018 reported. The largest breach reported – and largest breach of 2018 to date – was the 582,174-record breach at the California Department of Developmental Services – a burglary. It is unclear if any healthcare...

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More Than 20 Serious Vulnerabilities in OpenEMR Platform Patched
Aug09

More Than 20 Serious Vulnerabilities in OpenEMR Platform Patched

OpenEMR is an open-source electronic health record management system that is used by many thousands of healthcare providers around the world. It is the leading free-to-use electronic medical record platform and is extremely popular. Around 5,000 physician offices and small healthcare providers in the United States are understood to be using OpenEMR and more than 15,000 healthcare facilities worldwide have installed the platform. Around 100 million patients have their health information stored in the database. Recently, the London-based computer research organization Project Insecurity uncovered a slew of vulnerabilities in the source code which could potentially be exploited to gain access to highly sensitive patient information, and potentially lead to the theft of all patients’ health information. The Project Insecurity team chose to investigate EMR and EHR systems due to the large number of healthcare data breaches that have been reported in recent years. OpenEMR was the natural place to start as it was the most widely used EMR system and with it being open-source, it was easy...

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The Cost of SamSam Ransomware Attacks: $17 Million for the City of Atlanta
Aug09

The Cost of SamSam Ransomware Attacks: $17 Million for the City of Atlanta

The SamSam ransomware attack on the City of Atlanta was initially expected to cost around $6 million to resolve: Substantially more than the $51,000 ransom demand that was issued. However, city officials now believe the final cost could be around $11 million higher, according to a “confidential and privileged” document obtained by The Atlanta Journal-Constitution. The attack has prompted a complete overhaul of the city’s software and systems, including system upgrades, new software, and the purchasing of new security services, computers, tablets, laptops, and mobile phones. The Colorado Department of Transportation was also attacked with SamSam ransomware this year and was issued with a similar ransom demand. As with the City of Atlanta, the ransom was not paid. In its case, the cleanup is expected to cost around $2 million. When faced with extensive disruption and a massive clean up bill it is no surprise that many victims choose to pay the ransom. Now new figures have been released that confirm just how many victims have paid to recover their files and regain control of their...

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Healthcare Organizations Reminded of HIPAA Rules for Disposing of Electronic Devices
Aug07

Healthcare Organizations Reminded of HIPAA Rules for Disposing of Electronic Devices

In its July Cybersecurity Newsletter, the Department of Health and Human Services’ Office for Civil Rights has reminded HIPAA covered entities about HIPAA Rules for disposing of electronic devices and media. Prior to electronic equipment being scrapped, decommissioned, returned to a leasing company or resold, all electronic protected health information (ePHI) on the devices must be disposed of in a secure manner. HIPAA Rules for disposing of electronic devices cover all electronic devices capable of storing PHI, including desktop computers, laptops, servers, tablets, mobile phones, portable hard drives, zip drives, and other electronic storage devices such as CDs, DVDs, and backup tapes. Healthcare organizations also need to be careful when disposing of other electronic equipment such as fax machines, photocopiers, and printers, many of which store data on internal hard drives. These devices in particular carry a high risk of a data breach at the end of life as they are not generally thought of as devices capable of storing ePHI. If electronic devices are not disposed of securely...

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NIST/NCCoE Release Guide for Securing Electronic Health Records on Mobile Devices
Aug06

NIST/NCCoE Release Guide for Securing Electronic Health Records on Mobile Devices

The HIPAA Security Rule requires HIPAA-covered entities to ensure the confidentiality, integrity, and availability of electronic protected health information at all times. Healthcare organizations must ensure patients’ health is not endangered, their privacy is protected, and their identities are not compromised. A range of physical, technical, and administrative controls can be implemented to secure ePHI on servers and desktop computers, but ensuring the same level of security for mobile devices can be a major challenge. Mobile devices offer many benefits for healthcare providers. They can improve access to protected health information, ensure that data can be accessed anywhere, and they help healthcare providers improve coordination of care. However, when ePHI is stored on mobile devices such as laptops, tablets and mobile phones, or is transmitted using those devices, it is particularly vulnerable. Mobile devices are easy to lose, are often stolen, and data transmitted through mobile devices can also be vulnerable to interception. In healthcare, mobile device security is a major...

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Email Account Compromises Continue Relentless Rise
Aug02

Email Account Compromises Continue Relentless Rise

There has been a steady rise in the number of reported email data breaches over the past year. According to the July edition of the Beazley Breach Insights Report, email compromises accounted for 23% of all breaches reported to Beazley Breach Response (BBR) Services in Q2, 2018. In Q2, 2018 there were 184 reported cases of email compromises, an increase from the 173 in Q1, 2018 and 120 in Q4, 2017. There were 45 such breaches in Q1, 2017, and each quarter has seen the number of email compromise breaches increase. In Q2, 2018, the email account compromises were broadly distributed across a range of industry sectors, although the healthcare industry experienced more than its fair share. Healthcare email accounts often contain a treasure trove of sensitive data that can be used for identity theft, medical identity theft, and other types of fraud. The accounts can contain the protected health information of thousands of patients. The recently discovered phishing attack on Boys Town National Research Hospital resulted in the attackers gaining access to the PHI of more than 105,000...

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Orlando Orthopaedic Center Suffers 19,000-Record Breach Due to Business Associate Error
Aug01

Orlando Orthopaedic Center Suffers 19,000-Record Breach Due to Business Associate Error

An error made by a transcription service provider during a software upgrade on a server has resulted in the exposure of more than 19,000 patients’ protected health information (PHI). Patients affected by the breach had received medical services at Orlando Orthopaedic Center clinics in Orlando, Florida prior to January 2018. The software upgrade took place in December 2017 and throughout the month, PHI stored on the server became accessible over the Internet without any need for authentication. Orlando Orthopaedic Center only became aware of the exposure of patients’ PHI in February 2018. The discovery of the breach prompted a full investigation, which revealed names, dates of birth, insurance information, employer details, and treatment types were accessible. A limited number of patients also had their Social Security numbers exposed. It is unclear whether any PHI was accessed by unauthorized individuals during the time that the protections were removed. Orlando Orthopaedic Center said it has not received any reports from patients that indicate PHI has been misused and no evidence...

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1.4 Million Patients Warned About UnityPoint Health Phishing Attack
Jul31

1.4 Million Patients Warned About UnityPoint Health Phishing Attack

A massive UnityPoint Health phishing attack has been reported, one in which the protected health information of 1.4 million patients has potentially been obtained by hackers. This phishing incident is the largest healthcare data breach of 2018 by some distance, involving more than twice the number of healthcare records as the California Department of Developmental Services data breach reported in April and the LifeBridge Health breach reported in May. This is also the largest phishing incident to be reported by a healthcare provider since the HHS’ Office for Civil Rights (OCR) started publishing data breaches in 2009 and the largest healthcare breach since the 3,466,120-record breach reported by Newkirk Products, Inc., in August 2016. Email Impersonation Attack Fools Several Employees into Disclosing Login Credentials The UnityPoint Health phishing attack was detected on May 31, 2018. The forensic investigation revealed multiple email accounts had been compromised between March 14 and April 3, 2018 as a result of employees being fooled by email impersonation scams. Business email...

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HHS Secretary Alex Azar Promises Reforms to Federal Health Privacy Rules
Jul30

HHS Secretary Alex Azar Promises Reforms to Federal Health Privacy Rules

At a July 27 address at The Heritage Foundation, Secretary of the Department of Health and Human Services (HHS), Alex Azar, explained that the HHS will be undertaking several updates to health privacy regulations over the coming months, including updates to the Health Insurance Portability and Accountability Act (HIPAA) and 45 CFR Part 2 (Part 2) regulations. The process is expected to commence in the next couple of months. Requests for information on HIPAA and Part 2 will be issued, following which action will be taken to reform both sets of rules to remove obstacles to value-based care and support efforts to combat the opioid crisis. Rule changes are also going to be made to remove some of the barriers to data sharing which are currently hampering efforts by healthcare providers to expand the use of electronic health technology. These requests for information are part of a comprehensive review of current regulations that are hampering the ability of doctors, hospitals, and payers to improve the quality healthcare services and coordination of care while helping to reduce...

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Warnings Issued Following Increase in ERP System Attacks
Jul27

Warnings Issued Following Increase in ERP System Attacks

The United States Computer Emergency Readiness Team (US-CERT) has warned businesses about the increasing risk of cyberattacks on enterprise resource planning (ERP) systems such as the cloud-based ERPs developed by SAP and Oracle. These web-based applications are used to manage a variety of business operations, including finances, payroll, billing, logistics, and human resources functions. Consequently, these systems contain a treasure trove of sensitive data – The exact types of data sought by cybercriminals for fraud and cyber espionage. Further, many businesses rely on their ERP systems to function. A cyberattack that takes those systems out of action can have catastrophic consequences, making the systems an attractive target for sabotage by hacktivists and nation state backed hacking groups. The US-CERT warning follows a joint report on the increasing risk of ERP system attacks by cybersecurity firms Digital Shadows and Onapsis. The report focused on two of most widely used ERP systems: SAP HANA and Oracle E-Business. The authors explained that the number of publicly available...

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Flowers Hospital Proposes $150,000 Settlement for 2014 Data Breach
Jul26

Flowers Hospital Proposes $150,000 Settlement for 2014 Data Breach

A class action lawsuit filed in the wake of an employee-related data breach at Flowers Hospital in Dothan, Alabama in 2014 is heading towards being settled. The settlement has yet to receive final court approval, although approval seems likely and a resolution to this four-year legal battle is now in sight. In contrast to most class action lawsuits filed over the exposure/theft of PHI, this case involved the theft of data by an insider rather than a hacker. Further, the former employee used PHI for identity theft and fraud and was convicted of those crimes. The breach in question involved a former lab technician, Kamarian D. Millender, who was found in possession of paper records containing patients protected health information. Millender admitted to using the information for identity theft and for filing false tax returns in victims’ names. In December 2014, Millender was sentenced to serve two years in jail. In the class action lawsuit, filed the same year, it was claimed that between June 2013 and December 2014, paper records were left unprotected and unguarded at the hospital...

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FDA Issues New Guidance on Use of EHR Data in Clinical Investigations
Jul19

FDA Issues New Guidance on Use of EHR Data in Clinical Investigations

The U.S. Food and Drug Administration has released new guidance on the use of EHR data in clinical investigations and emphasized that appropriate controls should be put in place to ensure the confidentiality, integrity, and availability of data. While the guidance is non-binding, it provides healthcare organizations with valuable information on steps to take when deciding whether to use EHRs as a source of data for clinical investigations, how to use them and ensure the quality and integrity of EHR data, and how to make sure that any data collected and used as an electronic source of data meets the FDA’s inspection, recordkeeping and data retention requirements. The aim of the guidance is to promote the interoperability of EHR and EDC systems and facilitate the use of EHR data in clinical investigations, such as long-term studies on the safety and effectiveness of drugs, medical devices, and combination products. The guidance does not apply to data collected for registries and natural history studies, the use of EHR data to evaluate the feasibility of trial design or as a...

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Investigation Launched Over Snapchat Photo Sharing at M.M. Ewing Continuing Care Center
Jul19

Investigation Launched Over Snapchat Photo Sharing at M.M. Ewing Continuing Care Center

Certain employees of a Canandaigua, NY nursing home have been using their smartphones to take photographs and videos of at least one resident and have shared those images and videos with others on Snapchat – a violation of HIPAA and serious violation of patient privacy. The privacy breaches occurred at Thompson Health’s M.M. Ewing Continuing Care Center and involved multiple employees. Thompson Health has already taken action and has fired several workers over the violations. Now the New York Department of Health and the state attorney general’s office have got involved and are conducting investigations. The state attorney general’s Deputy Press Secretary, Rachel Shippee confirmed to the Daily Messenger that an investigation has been launched, confirming “The Medicaid Fraud Control Unit’s mission includes the protection of nursing home residents from abuse, neglect and mistreatment, including acts that violate a resident’s rights to dignity and privacy.” Thompson Health does not believe the images/videos were shared publicly and sharing was restricted to a group of employees at the...

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June 2018 Healthcare Breach Report
Jul18

June 2018 Healthcare Breach Report

There was a 13.8% month-over-month increase in healthcare data breaches in June 2018. Data breaches were up, but the breaches were far less severe in June, with 42.48% fewer healthcare records exposed or stolen than in May. In June there were 33 healthcare data breaches reported to the Department of Health and Human Services’ Office for Civil Rights and those breaches saw 356,232 healthcare records exposed or stolen – the lowest number of records exposed in healthcare data breaches since March 2018. Healthcare Data Breaches (January-June 2018) Healthcare Records Exposed (January-June 2018) Causes of Healthcare Data Breaches (June 2018) Unauthorized access/disclosure incidents were the biggest problem area in June, followed by hacking IT incidents. As was the case in May, there were 15 unauthorized access/disclosure breaches and 12 hacking/IT incidents. The remaining six breaches involved the theft of electronic devices (4 incidents) and paper records (2 incidents). There were no reported losses of devices or paperwork and no improper disposal incidents. Healthcare Records Exposed...

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LabCorp Cyberattack Forces Shutdown of Systems: Investigators Currently Determining Scale of Breach
Jul17

LabCorp Cyberattack Forces Shutdown of Systems: Investigators Currently Determining Scale of Breach

LabCorp, one of the largest clinical laboratories in the United States, has experienced a cyberattack that has potentially resulted in hackers gaining access to patients’ sensitive information; however, data theft appears unlikely as the cyberattack has now been confirmed as being a ransomware attack. It has been suggested that variant of SamSam ransomware was used in the brute force RDP attack, although this has not been confirmed by LabCorp. The Burlington, NC-based company runs 36 primary testing laboratories throughout the United States and the Los Angeles National Genetics Institute. The company performs standard blood and urine tests, HIV tests and specialty diagnostic testing services and holds vast quantities of highly sensitive data. The cyberattack occurred over the weekend of July 14, 2018 when suspicious system activity was identified by LabCorp’s intrusion detection system within 50 minutes of the attack commencing. Prompt action was taken to terminate access to its servers and systems were taken offline to contain the attack. With its systems offline, this naturally...

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Healthcare Data Breach Costs Highest of Any Industry at $408 Per Record
Jul12

Healthcare Data Breach Costs Highest of Any Industry at $408 Per Record

A recent study conducted by the Ponemon Institute on behalf of IBM Security has revealed the hidden cost of data breaches, and for the first time, the cost of mitigating 1 million-record+ data breaches. The study provides insights into the costs of resolving data breaches and the full financial impact on organizations’ bottom lines. For the global study, 477 organizations were recruited and more than 2,200 individuals were interviewed and asked about the data breaches experienced at their organizations and the associated costs. The breach costs were calculated using the activity-based costing (ABC) methodology. The average number of records exposed or stolen in the breaches assessed in the study was 24,615 and 31,465 in the United States. Last year, the Annual Cost of a Data Breach Study by the Ponemon Institute/IBM Security revealed the cost of breaches had fallen year over year to $3.62 million. The 2018 study, conducted between February 2017 and April 2018, showed data breach costs have risen once again. The average cost of a data breach is now $3.86 million – An annual increase...

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Cass Regional Medical Center EHR Out of Action Due to Ransomware Attack
Jul11

Cass Regional Medical Center EHR Out of Action Due to Ransomware Attack

Around 11am on Monday July 9, Cass Regional Medical Center in Harrisonville, MO, experienced a ransomware attack that affected its communication system and prevented staff from accessing its electronic medical record (EHR) system. The medical center had policies in place for such an emergency situation. Its incident response protocol was initiated within 30 minutes of the discovery of the attack and staff met to develop detailed plans to minimize the impact to patients. Ransomware attacks typically do not involve the attackers gaining access to data, although as a precaution, it’s EHR vendor – Meditech – shut down the EHR system while the attack was investigated and remediated. At this stage, no evidence has been uncovered to suggest patient data have been accessed. As an additional precautionary measure, ambulances for trauma and stroke have been redirected to other medical facilities. Without access to the EHR system, staff resorted to pen and paper while its IT staff worked to decrypt data and bring its systems back online. A leading international forensics firm was called in to...

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Patient Privacy and Security Are Greatest Healthcare Concerns for Consumers
Jul10

Patient Privacy and Security Are Greatest Healthcare Concerns for Consumers

A recent survey conducted by the health insurer Aetna explored consumers’ attitudes to healthcare, their relationships with their providers, and what they view as the most important aspects of healthcare. The Health Ambitions Study was conducted on 1,000 consumers aged 18 and above, with a corresponding survey conducted on 400 physicians – 200 primary care doctors and 200 specialists. The consumer survey showed consumers are paying attention to their healthcare. A majority pay attention to holistic health and seek resources that support better health and wellbeing. 60% of respondents to the survey said that if they were given an extra hour each day they would spend it doing activities that improved their health or mental health. 67% of women and 44% of men would devote the hour to these activities. Fewer women believed their physicians understood their health needs than men. 65% of women and 80% of men said their doctor is familiar with their health goals. Women find it harder than men to talk to their physicians about their lifestyle habits (70% vs 81%) and women were much less...

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Federal Court Rules in Favor of Main Line Health in Age Discrimination Case Over HIPAA Violation
Jul09

Federal Court Rules in Favor of Main Line Health in Age Discrimination Case Over HIPAA Violation

In 2016, Radnor, PA-based Main Line Health Inc., terminated an employee for violating Health Insurance Portability and Accountability Act (HIPAA) Rules by accessing the personal records of a co-worker without authorization on two separate occasions. In such cases, when employee or patient records are accessed without authorization, employees face disciplinary action which can include termination. Gloria Terrell was one such employee who was terminated for violating company policies and HIPAA Rules. Main Line Health fired Terrell for “co-worker snooping.” Terrell filed an internal appeal over her termination and maintained she accessed the records of a co-worker in order to obtain a contact telephone number. Terrell said she needed to contact the co-worker to make sure a shift would be covered, and this constituted a legitimate business reason for the access as she was unable to find the phone list with employees’ contact numbers. After firing Terrell, Main Line Health appointed a significantly younger person to fill the vacant position. Terrell took legal action against Main Line...

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AHA Voices Concern About CMS’ Hospital Inpatient Prospective Payment System Proposed Rule
Jul05

AHA Voices Concern About CMS’ Hospital Inpatient Prospective Payment System Proposed Rule

The American Hospital Association (AHA) has voiced the concerns of its members about the HHS’ Centers for Medicare and Medicaid Services’ hospital inpatient prospective payment system proposed rule for fiscal year 2019, including the requirement to allow any health app of a patient’s choosing to connect to healthcare providers’ APIs. Consumer Education Program Required to Explain that HIPAA Doesn’t Apply to Health Apps Mobile health apps can con collect and store a considerable amount of personal and health information – in many cases, the same information that would be classed as protected Health Information (PHI) under Health Insurance Portability and Accountability Act (HIPAA) Rules. However, HIPAA does not usually apply to health app developers and therefore the health data collected, stored, and transmitted by those apps may not be protected to the level demanded by HIPAA. When consumers enter information into the apps, they may not be aware that the safeguards in place to protect their privacy may not be as stringent as those implemented by their healthcare providers. There...

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Warning About HIPAA Journal Spoofing Campaign
Jul05

Warning About HIPAA Journal Spoofing Campaign

It has come to our attention that an individual not associated with HIPAA Journal has registered an email address using the HIPAA Journal brand name and is contacting physicians warning them about alleged HIPAA violations by a healthcare company. The email address being used in this spoofing campaign is hipaajournalinfo@gmail.com The subject lines of the emails reported so far are: “HIPAA Violation!” “HIPAA Violation Warning” The image below is an example of one of the messages sent in this spoofing campaign: Further emails allege several HIPAA violations have occurred at this healthcare company and the emails claim HIPAA Journal is actively investigating the violations and has obtained proof that HIPAA has been violated. This is not the case. No investigation has been launched and no evidence of any HIPAA violations has been obtained by HIPAA Journal. The emails contain links to the website – www.hipaajournal.com – and others in an attempt to add credibility. This does not appear to be a phishing campaign, but an attempt to use the HIPAA Journal name to add credibility...

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Healthcare Worker Charged with Criminally Violating HIPAA Rules
Jul03

Healthcare Worker Charged with Criminally Violating HIPAA Rules

A former University of Pittsburgh Medical Center patient information coordinator has been indicted by a federal grand jury over criminal violations of HIPAA Rules, according to an announcement by the Department of Justice on June 29, 2018. Linda Sue Kalina, 61, of Butler, Pennsylvania, has been charged in a six-count indictment that includes wrongfully obtaining and disclosing the protected health information of 111 patients. Kalina worked at the University of Pittsburgh Medical Center and the Allegheny Health Network between March 30, 2016 and August 14, 2017. While employed at the healthcare organizations, Kalina is alleged to have accessed the protected health information (PHI) of those patients without authorization or any legitimate work reason for doing so. Additionally, Kalina is alleged to have stolen PHI and, on four separate occasions between December 30, 2016, and August 11, 2017, disclosed that information to three individuals with intent to cause malicious harm. Kalina was arrested following an investigation by the Federal Bureau of Investigation. The case was taken up...

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OCR Draws Attention to HIPAA Patch Management Requirements
Jul03

OCR Draws Attention to HIPAA Patch Management Requirements

Healthcare organizations have been reminded of HIPAA patch management requirements to ensure the confidentiality, integrity, and availability of ePHI is safeguarded. Patch Management: A Major Challenge for Healthcare Organizations Computer software often contains errors in the code that could potentially be exploited by malicious actors to gain access to computers and healthcare networks. Software, operating system, and firmware vulnerabilities are to be expected. No operating systems, software application, or medical device is bulletproof. What is important is those vulnerabilities are identified promptly and mitigations are put in place to reduce the probability of the vulnerabilities being exploited. Security researchers often identify flaws and potential exploits. The bugs are reported to manufacturers and patches are developed to fix the vulnerabilities to prevent malicious actors from taking advantage. Unfortunately, it is not possible for software developers to test every patch thoroughly and identify all potential interactions with other software and systems and still...

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California Passes GDPR-Style Data Privacy Law
Jul02

California Passes GDPR-Style Data Privacy Law

AB 375, the California Consumer Privacy Act of 2018, has been signed into law. The bill was signed by California governor Jerry Brown on Thursday after the state Senate and Assembly passed the bill unanimously. California already has some of the strictest privacy laws in the United States. Under existing legislation, companies that experience a breach of personal information must notify affected individuals if their computerized data is exposed or stolen. This law takes privacy protections much further and gives state residents several new GDPR-style privacy rights, including: The right to request information from businesses about the types of personal data that are collected and processed and the source of that information Be informed about the purpose for collecting, using, and selling personal data Categories of third parties with whom the information is shared The right to request a copy of all personal information collected by a business The right to have all personal information deleted on request The right to request personal information is not sold The right to initiate...

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Unencrypted Hospital Pager Messages Intercepted and Viewed by Radio Hobbyist
Jun26

Unencrypted Hospital Pager Messages Intercepted and Viewed by Radio Hobbyist

Many healthcare organizations have now transitioned to secure messaging systems and have retired their outdated pager systems. Healthcare organizations that have not yet made the switch to secure text messaging platforms should take note of a recent security breach that saw pages from multiple hospitals intercepted by a ‘radio hobbyist’ in Missouri. Intercepting pages using software defined radio (SDR) is nothing new. There are various websites that explain how the SDR can be used and its capabilities, including the interception of private communications. The risk of PHI being obtained by hackers using this tactic has been well documented.  All that is required is some easily obtained hardware that can be bought for around $30, a computer, and some free software. In this case, an IT worker from Johnson County, MO purchased an antenna and connected it to his laptop in order to pick up TV channels. However, he discovered he could pick up much more. By accident, he intercepted pages sent by physicians at several hospitals. The man told the Kansas City Star he intercepted pages...

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District Court Ruling Confirms No Private Cause of Action in HIPAA
Jun25

District Court Ruling Confirms No Private Cause of Action in HIPAA

Patients who believe HIPAA Rules have been violated can submit a compliant to the Department of Health and Human Services’ Office for Civil Rights, but they do not have the right to take legal action, at least not for the HIPAA violation. There is no individual private cause of action under HIPAA law. Several patients have filed lawsuits over alleged HIPAA violations, although the cases have not proved successful. A recent case has confirmed once again that there is no private cause of action in HIPAA, and lawsuits filed solely on the basis of a HIPAA violation are extremely unlikely to succeed. Ms. Hope Lee-Thomas filed the lawsuit for an alleged HIPAA violation that occurred at Providence Hospital in Washington D.C., where she received treatment from LabCorp. Ms. Lee-Thomas, who represented herself in the action, claims that while at the hospital on June 15, 2017, a LabCorp employee instructed her to enter her protected health information at a computer intake station. Ms. Lee-Thomas told the LabCorp employee that the information was in full view of another person at a different...

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Overdose Prevention and Patient Safety Act Passed by House
Jun22

Overdose Prevention and Patient Safety Act Passed by House

The Overdose Prevention and Patient Safety Act – H.R. 6082 – aims to ease restrictions on the sharing of health records of patients with addictions, aligning 42 CFR Part 2 – Confidentiality of Substance Use Disorder Patient Records – with HIPAA. Currently, 42 CFR Part 2 only permits the disclosure of health records of patients with substance abuse disorder without written consent to medical staff in emergency situations, to specified individuals for research and program evaluations, or if required to do so by means of a court order. Under current regulations, a special release form must be signed by a patient authorizing the inclusion of substance abuse disorder information in their medical record. Preventing doctors from having access to a patient’s entire medical history means decisions could be taken without full understanding of their potential consequences. If details of substance abuse disorder can be accessed, doctors will be able to make more informed decisions which will help them to safely and effectively treat patients. The Overdose Prevention and Patient Safety...

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Common Rule Compliance Date Delayed Until January 2019
Jun22

Common Rule Compliance Date Delayed Until January 2019

On June 19, 2018, the federal government published the final rule for the Federal Policy for the Protection of Human Subjects – The Common Rule. The aim of the Common Rule is to protect individuals who voluntarily participate in research, while also reducing the administrative and regulatory burdens for low-risk research. A revised Common Rule was due to take effect on January 19, 2018 with an effective compliance date on the same date. However, an interim final rule was published on January 17, 2018 delaying the effective date for six months – The new compliance date was due to be July 19, 2018. On April 20, 2018, a notice of proposed rulemaking was published seeking comments about whether the new Common Rule requirements should be delayed for a further six months. After assessing the comments received on the notice of proposed rulemaking, the proposals made in that NPRM have been adopted and the compliance date has now been extended until January 21, 2019. In the final rule it was noted, “We acknowledge that the timing of the interim final rule was not ideal and led to...

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Washington Health System Suspends Several Employees for Inappropriate PHI Access
Jun21

Washington Health System Suspends Several Employees for Inappropriate PHI Access

Following the alleged inappropriate accessing of patient health records by employees, Washington Health System has taken the decision to suspend several employees while the privacy breach is investigated. While it has not been confirmed how many employees have been suspended, Washington Health System VP of strategy and clinical services, Larry Pantuso, issued a statement to the Observer Reporter indicating around a dozen employees have been suspended, although at this stage, no employees have been fired for inappropriate medical record access. The privacy breaches are believed to relate to the death of an employee of the WHS Neighbor Health Center. Kimberly Dollard, 57, was killed when an out of control car driven by Chad Spence, 43, rammed into the building where she worked. Spence and one other individual were admitted to the hospital after sustaining injuries in the accident. Pantuso did not confirm that this was the incident that prompted the employees to access patients’ medical records, although he did confirm that the alleged inappropriate access related to a “high profile...

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270,000 Patients Potentially Affected by Med Associates Hacking Incident
Jun20

270,000 Patients Potentially Affected by Med Associates Hacking Incident

The Latham, NY-based health billing company Med Associates, which provides claims services to more than 70 healthcare providers, has discovered an employee’s computer has been accessed by an unauthorized individual. It is possible that the attacker gained access to the protected health information of up to 270,000 patients through the compromised device. Unusual activity was identified on an employee’s computer on March 22, 2018, prompting an investigation by the IT department. Further investigation by a third-party computer forensics firm confirmed that the computer had been remotely accessed by an unauthorized individual. The investigation confirmed that the breach occurred on the same day that the unusual activity was detected. Upon learning of the breach, access to the computer was terminated. Med Associates and the computer forensics firm did not uncover any evidence to suggest that any information accessible through the computer was accessed by the hacker and neither have any reports been received to suggest any PHI has been misused. All patients impacted by the breach have...

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May 2018 Healthcare Data Breach Report
Jun19

May 2018 Healthcare Data Breach Report

April was a particularly bad month for healthcare data breaches with 41 reported incidents. While it is certainly good news that there has been a month-over-month reduction in healthcare data breaches, the severity of some of the breaches reported last month puts May on a par with April. There were 29 healthcare data breaches reported by healthcare providers, health plans, and business associates of covered entities in May – a 29.27% month-over month reduction in reported breaches. However, 838,587 healthcare records were exposed or stolen in those incidents – only 56,287 records fewer than the 41 incidents in April. In May, the mean breach size was 28,917 records and the median was 2,793 records. In April the mean breach size was 21,826 records and the median was 2,553 records. Causes of May 2018 Healthcare Data Breaches Unauthorized access/disclosure incidents were the most numerous type of breach in May 2018 with 15 reported incidents (51.72%). There were 12 hacking/IT incidents reported (41.38%) and two theft incidents (6.9%). There were no lost unencrypted electronic devices...

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OCR Announces $4.3 Million Civil Monetary Penalty for University of Texas MD Anderson Cancer Center
Jun19

OCR Announces $4.3 Million Civil Monetary Penalty for University of Texas MD Anderson Cancer Center

The Department of Health and Human Services’ Office for Civil Rights has announced its fourth largest HIPAA violation penalty has been issued to The University of Texas MD Anderson Cancer Center (MD Anderson). MD Anderson has been ordered to pay $4,348,000 in civil monetary penalties to resolve the HIPAA violations related to three data breaches experienced in 2012 and 2013. MD Anderson is an academic institution and a cancer treatment and research center based at the Texas Medical Center in Houston, TX. Following the submission of three breach reports in 2012 and 2013, OCR launched an investigation to determine whether the breaches were caused as a result of MD Anderson having failed to comply with HIPAA Rules. The breaches in question were the theft of an unencrypted laptop computer from the home of an MD Anderson employee and the loss of two unencrypted USB thumb drives, each of which contained the electronic protected health information (ePHI) of its patients. In total, the PHI of 34,883 patients was exposed and could potentially have been viewed by unauthorized individuals....

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OCR Issues Guidance on Individual Authorization of Uses and Disclosures of PHI for Research
Jun15

OCR Issues Guidance on Individual Authorization of Uses and Disclosures of PHI for Research

The Department of Health and Human Services’ Office for Civil Rights has issued new guidance for HIPAA-covered entities to streamline HIPAA authorizations for uses of protected health information for research purposes, as required by the 21st Century Cures Act of 2016. Uses and Disclosure of PHI for Research The HIPAA Privacy Rule does permit covered entities to use patients’ PHI for research without obtaining individual authorizations under certain circumstances, such as if documented Institutional Review Board (IRB) or Privacy Board Approval has been obtained – see 45 CFR § 164.512(i)(1)(i) and (ii). However, in most cases, prior to using patients’ PHI for research, individual authorizations must be obtained from patients in writing. Without a valid authorization from a patient, their PHI can only be used or disclosed for purposes permitted by the Privacy Rule. The new guidance explains the content that must be included in individual authorizations to meet HIPAA requirements. OCR explains that individual authorizations must: Be written in plain language to ensure they can be...

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More than 90% of Hospitals and Physicians Say Mobile Technology is Improving Patient Safety and Outcomes
Jun12

More than 90% of Hospitals and Physicians Say Mobile Technology is Improving Patient Safety and Outcomes

90% of hospitals and 94% of physicians have adopted mobile technology and say it is helping to improve patient safety and outcomes, according to a recent survey conducted by Black Book Research. The survey was conduced on 770 hospital-based users and 1,279 physician practices between Q4, 2017 and Q1, 2018. The survey revealed 96% of hospitals are planning on investing in a new clinical communications platform this year or have already adopted a new, comprehensive communications platform. 85% of surveyed hospitals and 83% of physician practices have already adopted a secure communication platform to improve communications between care teams, patients, and their families. Secure text messaging platform are fast becoming the number one choice due to the convenience of text messages, the security offered by the platforms, and the improvements they make to productivity and profitability. 98% of hospitals and 77% of physician practices said they have implemented secure, encrypted email and are using intrusion detection systems to ensure breaches are detected rapidly. Many providers of...

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12-Month Suspension for Nurse Who Provided Patient Information to New Employer
Jun08

12-Month Suspension for Nurse Who Provided Patient Information to New Employer

The New York State Education Department has suspended the license of a nurse practitioner for violating the privacy of patients by providing their contact information to her new employer. In April 2015, Martha C. Smith-Lightfoot took a spreadsheet containing the personally identifiable information of approximately 3,000 patients of University of Rochester Medical Center (URMC) and gave that information to her new employer, Greater Rochester Neurology. The privacy violation was uncovered when several patients complained to URMC about being contacted by Greater Rochester Neurology about switching providers. Prior to leaving URMC, Smith-Lightfoot requested information on patients she has treated in order to ensure continuity of care.  URMC provider her with a spreadsheet that contained names, addresses, dates of birth, and diagnoses. URMC did not authorize Smith-Lightfoot to take the spreadsheet with her when she left employment. The provision of the patient list to Greater Rochester Neurology was an impermissible disclosure of PHI and a violation of the HIPAA Privacy Rule. When it...

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Healthcare Employees Accused of Taking PHI to New Employers
Jun07

Healthcare Employees Accused of Taking PHI to New Employers

Two HIPAA-covered entities are notifying patients that former employees have accessed databases and stolen protected health information to take to new employers. Former Hair Free Forever Employee Contacts Patients to Solicit Customers Hair Free Forever, a Ventura, CA-based provider of permanent hair removal treatments, has announced that a former employee has stolen patient information and has been contacting its patients in an attempt to solicit customers. The company uses Thermolysis to permanently remove hair. Since the technique is classed as a medical procedure, Hair Free Forever and its employees are required to comply with HIPAA Rules. In a data breach notice provided to the California attorney general, Hair Free Forever’s Cheryl Conway informs patients that the former employee accessed patient files and the company’s database and stole patients’ protected health information, in clear violation of HIPAA Rules. The data theft came to light when complaints were received from customers who had been contacted and told about the former employee’s new practice. An investigation...

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Advisory Issued About Vulnerabilities in Phillips IntelliVue Patient and Avalon Fetal Monitors
Jun06

Advisory Issued About Vulnerabilities in Phillips IntelliVue Patient and Avalon Fetal Monitors

The Department of Homeland Security’s Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) has issued an advisory over vulnerabilities affecting certain Phillips IntelliVue Patient and Avalon Fetal monitors. Three vulnerabilities have been identified by Phillips and communicated to ICS-CERT: Two have been rated high and one medium. If successfully exploited, an attacker could read/write memory and introduce a denial of service through a system restart. Exploitation of the flaws could cause a delay in the diagnosis and treatment of patients. Products Affected: IntelliVue Patient Monitors MP Series (includingMP2/X2/MP30/MP50/MP70/NP90/MX700/800) Rev B-M; IntelliVue Patient Monitors MX (MX400-550) Rev J-M and (X3/MX100 for Rev M only); Avalon Fetal/Maternal Monitors FM20/FM30/FM40/FM50 with software Revisions F.0, G.0 and J.3 Vulnerabilities: CWE-0287 – Improper Authentication Vulnerability After gaining LAN access, an unauthenticated individual could exploit the vulnerability to gain access to the memory (write-what-where) on a chosen device within the same subnet....

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Lawsuits Filed Over Alleged HIPAA Violations
Jun05

Lawsuits Filed Over Alleged HIPAA Violations

Two lawsuits have recently been filed in relation to alleged breaches of Health Insurance Portability and Accountability Act (HIPAA) Rules, one by a former hospital employee and another by a patient whose privacy was allegedly violated by a CVS pharmacy employee. Former Employee of Mosaic Life Care Medical Center Takes Legal Action over Dismissal A former employee of Mosaic Life Care Medical Center in St. Joseph, MO is taking legal action over wrongful discharge and retaliation for her taking steps to avoid a violation of the False Claims Act. Debra Conard, 57, alleges she was wrongfully terminated for raising concerns about unlawful, unethical, and fraudulent billing practices. According to the lawsuit, in April 2017, Conard was instructed by hospital officials to release charges for billing even though the documentation did not support the claims. Multiple charges were required to be pushed through, which would induce payment by Medicare and other third parties, even though Conrad could not verify that the claims were correct. Conrad raised her concerns about potential violations...

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Colorado Governor Signs Data Protection Bill into Law
Jun05

Colorado Governor Signs Data Protection Bill into Law

Colorado Governor John Hickenlooper has signed a bill – HB 1128 – into law that strengthens protections for consumer data in the state of Colorado. The bipartisan bill, sponsored by Reps. Cole Wist (R) and Jeff Bridges (D) and Sens. Kent Lambert (R) and Lois Court (D), was unanimously passed by the Legislature. The bill will take effect from September 1, 2018. The bill requires organizations operating in the state of Colorado to implement reasonable security measures and practices to ensure the personal identifying information (PII) of state residents is protected. The bill also reduces the time for notifying the state attorney general about breaches of PII and introduces new rules for disposing of PII when it is no longer required. Personal information is classed as first name and last name or first initial and last name in combination with any of the following data elements (when not encrypted, redacted, or secured by another means that renders the information unreadable): Social Security number Student ID number Military ID number Passport number Driver’s license number or...

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Could Law Firms Targeting Patients in ER Rooms Using Geofencing Technology Violate HIPAA?
Jun01

Could Law Firms Targeting Patients in ER Rooms Using Geofencing Technology Violate HIPAA?

Questions are being raised about whether HIPAA Rules are being violated when attorneys send text messages and push notifications to patients who have visited emergency rooms and other medical facilities using geofencing technology. Marketers are using a range of clever tactics to sell products and services such as remarketing – The displaying of advertisements on websites to individuals who have previously viewed products on another website but not made a purchase. Similarly, the use of geofencing is growing in popularity. Geofencing is the creation of a digital fence around a specific location. When an individual crosses that invisible boundary, a push notification is sent to the users mobile phone. That location could be a store or any location. Retailers have been using the technology for some time, Google sends push notifications based on location, and now attorneys are getting in on the act. This tactic of targeting specific individuals is being offered by at least one digital marketing firm and the service is being offered to attorneys. In this case the geofence is around...

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Aetna Files Further Lawsuit in an Attempt to Recover Costs from 2017 HIV Status Privacy Breach
Jun01

Aetna Files Further Lawsuit in an Attempt to Recover Costs from 2017 HIV Status Privacy Breach

There have been further developments in the ongoing legal battles over a 2017 privacy breach experienced by Aetna involving the exposure of patients’ sensitive health information. A further lawsuit has been filed by the insurer in an attempt to recover the costs incurred as a result of the breach. Ongoing Legal Battles Over the Exposure of Patients’ HIV Statuses In 2017, the health insurer Aetna experienced a data breach that saw highly sensitive patient information impermissibly disclosed to other individuals. A mailing vendor sent letters to patients using envelopes with clear plastic windows and information about HIV medications were allegedly visible. The mailings related to HIV medications used to treat patients who had already contracted HIV and individuals who were taking drugs as pre-exposure prophylaxis. Approximately 12,000 patients received the mailing. Lawsuits were filed on behalf of patients whose HIV positive status was impermissibly disclosed, which were settled in January for $17.2 million. A settlement was agreed with the New York state attorney general for a...

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OCR Reminds Covered Entities Not to Overlook Physical Security Controls
May31

OCR Reminds Covered Entities Not to Overlook Physical Security Controls

The Department of Health and Human Services’ Office for Civil Rights (OCR) has reminded covered entities that HIPAA not only requires technical controls to be implemented to ensure the confidentiality, integrity, and availability of protected health information, but also appropriate physical security controls. Physical controls are often the simplest and cheapest forms of protection to keep PHI private and confidential, yet these security controls are often overlooked. Some physical security controls cost nothing – such as ensuring portable electronic devices (laptop computers, portable storage devices, and pen drives) are locked away when they are not in use. While this is a very basic form of security, it is one of the most effective ways of preventing theft and one that can prove incredibly costly if overlooked. OCR draws attention to a 2015 HIPAA breach settlement with Lahey Hospital and Medical Center. An unencrypted laptop computer was stolen from the Tufts Medical School affiliated teaching hospital resulting in the exposure 599 patients’ ePHI. The laptop computer was used...

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CMS Urged to Aggressively Enforce Compliance with HIPAA Administrative Simplifications
May25

CMS Urged to Aggressively Enforce Compliance with HIPAA Administrative Simplifications

The Department of Health and Human Services’ Office for Civil Rights is the primary enforcer of HIPAA Rules and has issued numerous financial penalties for HIPAA violations in response to complaints and data breaches. State attorneys general are also permitted to fine HIPAA-covered entities when violations of HIPAA Rules are discovered, and several state attorneys general have exercised that right. While the HHS’ Centers for Medicare & Medicaid Services is mandated to assist OCR with the enforcement of HIPAA Rules related to compliance with the HIPAA Administrative Simplifications, to date the CMS has not issued any fines. The Medical Group Management Association (MGMA) believes that should change and the CMS should start enforcing compliance with HIPAA Rules that aim to reduce the administrative burden on healthcare providers. In a recent letter to CMS, the MGMA explained it has received many complaints from members related to the failure of health plans to comply with HIPAA and ACA administrative simplification requirements. The lack of enforcement activity by the CMS in...

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OCR Plans to Share HIPAA Violation Settlements with Breach Victims
May23

OCR Plans to Share HIPAA Violation Settlements with Breach Victims

The Health Information Technology for Economic and Clinical Health (HITECH) Act was enacted in 2009 and includes a provision that calls for the Department of Health and Human Services to share a percentage of HIPAA settlements with victims of HIPAA violations and data breaches. This month has seen some progress in that area. The Department of Health and Human Services’ Office for Civil Rights has announced it is planning on issuing an advance notice of proposed rulemaking in November about sharing a percentage of the fines it collects through its HIPAA enforcement activities with the victims of data breaches. OCR officials have previously made it clear that steps will be taken to meet the requirements of this HITECH provision, but little progress has been made. This is not the first time that OCR has announced it plans to issue an advance notice of proposed rulemaking on the matter only for the advance notice of proposed rulemaking to be delayed. If OCR follows through on its plans this fall, feedback will be sought from the public and industry stakeholders on how it can achieve...

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538,000 Patients Notified of LifeBridge Health Data Breach
May23

538,000 Patients Notified of LifeBridge Health Data Breach

Earlier this month, the Baltimore-based healthcare provider LifeBridge Health announced it had experienced a data breach. A press release about the breach was issued on May 16, although there was no mention of the number of patients impacted. Further information has now been released on the extent of the breach. On March 18, 2018, LifeBridge Health discovered malware had been installed on a server that hosted the electronic medical record system used by LifeBridge Potomac Professionals and LifeBridge Health’s patient registration and billing systems. The discovery of malware prompted a through investigation to determine when access to the server was first gained. LifeBridge Health contracted a national computer forensics firm to assist with the investigation with the firm establishing that access to the server was first gained 18 months previously on September 27, 2016. The types of information stored on the server included patients’ names, dates of birth, addresses, diagnoses, medications prescribed, clinical and treatment information, insurance details, and a limited number of...

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Healthcare Data Breach Report: April 2018
May18

Healthcare Data Breach Report: April 2018

April was a particularly bad month for healthcare data breaches with both the number of breaches and the number of individuals impacted by breaches both substantially higher than in March. There were 41 healthcare data breaches reported to the Department of Health and Human Services’ Office for Civil Rights in April. Those breaches resulted in the theft/exposure of 894,874 healthcare records. Healthcare Data Breach Trends For the past four months, the number of healthcare data breaches reported to OCR has increased month over month. For the third consecutive month, the number of records exposed in healthcare data breaches has increased. Causes of Healthcare Data Breaches in April 2018 The healthcare industry may be a big target for hackers, but the biggest cause of healthcare data breaches in April was unauthorized access/disclosure incidents. While cybersecurity defences have been improved to make it harder for hackers to gain access to healthcare data, there is still a major problem preventing accidental data breaches by insiders and malicious acts by healthcare employees....

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Lincare Settles W-2 Phishing Scam Lawsuit for $875,000
May18

Lincare Settles W-2 Phishing Scam Lawsuit for $875,000

The respiratory therapy supplier Lincare Inc., has agreed to settle a class-action lawsuit filed by employees whose W-2 information was sent to cybercriminals when an employee responded to a phishing scam. On February 3, 2017, a member of Lincare’s human resources department received an email from a high-level executive requesting copies of W-2 information for all employees of the firm. Believing the email was a genuine request, the employee responded and attached W-2 information for ‘a certain number of employees of Lincare and its affiliates.’ After discovering the accidental disclosure of sensitive information, Lincare contacted affected employees and offered them two years of credit monitoring, identity theft insurance, and remediation services without charge. On October 16, 2017, three employees – Andrew Giancola, Raymond T. Scott, and Patricia Smith – took legal action against Lincare alleging negligence, breach of implied contract, breach of fiduciary duty, and violation of Florida’s Deceptive and Unfair Trade Practices Act. The lawsuit survived a motion to dismiss and...

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GAO: Medical Records Can be Difficult and Expensive to Obtain
May17

GAO: Medical Records Can be Difficult and Expensive to Obtain

A recent audit conducted by the Government Accountability Office (GAO) has shown patients still face many challenges obtaining copies of their health information and healthcare providers and insurers are struggling to meet HIPAA requirements – and in some cases – are violating HIPAA Rules. A 21st Century Cures Act provision required GAO to conduct a study on patient access to medical records. The audit involved interviews with stakeholders, vendors, provider organizations, patient advocates, and state and HHS officials. The audit was conducted in four states – Ohio, Kentucky, Rhode Island and Wisconsin – which were chosen, in part, due to the range of fees charged for providing patients with copies of their medical records. Under HIPAA, patients are permitted to request copies of their health records from their providers. Patients can request their health records in paper or digital form and the requests must be processed within 30 days. HIPAA-covered entities are allowed to charge a reasonable, cost-based fee for providing patients with copies of their health data. Patients obtain...

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Healthcare IT Security Budgets Frozen Despite Increase in Cyberattacks
May15

Healthcare IT Security Budgets Frozen Despite Increase in Cyberattacks

A recent report from Black Book Research has revealed more than 90% of healthcare organizations have experienced a data breach since Q3 2016, yet IT security spending at 88% of hospitals remains at 2016 levels. The data comes from a survey of more than 2,400 security professionals from 680 provider organizations. The aim of the study was to identify the reasons why the healthcare industry is particularly vulnerable to cyberattacks. Black Book Research explains in the report that since 2015 there have been more than 180 million healthcare records stolen, with approximately one in 12 healthcare consumers affected by a data breach at a provider organization. Nine out of ten healthcare providers have experienced a breach, but almost 50% of providers have experienced more than 5 data breaches since Q3, 2016. There has been a marked increase in healthcare data breaches over the past three years, with cybercriminals and nation state-backed hackers increasingly targeting the healthcare industry. Even though cyberattacks are on the rise, healthcare IT security budgets are not increasing. It...

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Warnings Issued Over Vulnerable Medical Devices
May14

Warnings Issued Over Vulnerable Medical Devices

Warnings have been issued by the Department of Homeland Security’s (DHS) Industrial Control Systems Cyber Emergency Response Team (ICS-CERT) about vulnerabilities in several medical devices manufactured by Silex Technology, GE Healthcare, and Phillips. If the vulnerabilities were to be exploited, an unauthorized individual could potentially take control of the devices. Phillips Brilliance CT Scanners In early May, Phillips alerted the National Cybersecurity and Communications Integration Center (NCCIC) about security vulnerabilities affecting its Brilliance CT scanners. Phillips has been working to remediate the vulnerabilities and has been working with DHS to alert users of its devices to help them reduce risk. There have been no reports received to suggest any of the vulnerabilities have been exploited in the wild. Three vulnerabilities have been discovered to affect the following scanners: Brilliance 64 version 2.6.2 and below Brilliance iCT versions 4.1.6 and below Brillance iCT SP versions 3.2.4 and below Brilliance CT Big Bore 2.3.5 and below See ICS-CERT advisory...

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Spate of Phishing Attacks on Healthcare Organizations Sees 90,000 Records Exposed
May10

Spate of Phishing Attacks on Healthcare Organizations Sees 90,000 Records Exposed

The past few weeks have seen a significant rise in successful phishing attacks on healthcare organizations. In a little over four weeks there have been 10 major email hacking incidents reported to the Department of Health and Human Services’ Office for Civil Rights, each of which has resulted in the exposure and potential theft of more than 500 healthcare records. Those ten incidents alone have seen almost 90,000 healthcare records compromised. Recent Email Hacking and Phishing Attacks on Healthcare Organizations HIPAA-Covered Entity Records Exposed Inogen Inc. 29,529 Knoxville Heart Group 15,995 USACS Management Group Ltd 15,552 UnityPoint Health 16,429 Texas Health Physicians Group 3,808 Scenic Bluffs Health Center 2,889 ATI Holdings LLC 1,776 Worldwide Insurance Services 1,692 Billings Clinic 949 Diagnostic Radiology & Imaging, LLC 800 The Oregon Clinic Undisclosed   So far this year there have been three data breaches involving the hacking of email accounts that have exposed more than 30,000 records. Agency for Health Care Administration suffered a 30,000-record breach in...

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Tristar Medical Group Discovers Solution That Reduced its AWS Costs by 60%
May09

Tristar Medical Group Discovers Solution That Reduced its AWS Costs by 60%

Healthcare organizations are increasingly turning to the cloud to meet their IT needs, but while there are many advantages to be gained from migrating applications, infrastructure, and datacenter operations to the cloud, managing cloud costs remains a major challenge. Many healthcare organizations choose AWS EC2 instances for their servers. While the platform meets their needs, the high cost of running AWS EC2 instances – or equivalent instances from other providers – is forcing many healthcare organizations to scale back their cloud migration plans. The cost of running AWS EC2 instances can be considerable. Tristar Medical Group, the largest privately-owned healthcare provider in Australia, runs facilities across the country, spread across multiple time zones. Its clinics need access to servers around the clock and cloud instances were left running 24/7. Tristar soon discovered its strategy was proving prohibitively expensive. While the needs of its clinics were being met, the cost of its virtual desktop infrastructure (VDI) solution was unsustainable. The rising OpEx costs...

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Class Action Lawsuit Claims UnityPoint Health Mislead Patients over Severity of Phishing Attack
May08

Class Action Lawsuit Claims UnityPoint Health Mislead Patients over Severity of Phishing Attack

A class action lawsuit has been filed in response to a data breach at UnityPoint Health that saw the protected health information (PHI) of 16,429 patients exposed and potentially obtained by unauthorized individuals. As with many other healthcare data breaches, PHI was exposed as a result of employees falling for phishing emails. UnityPoint Health discovered the security breach on February 15, 2018 and sent breach notification letters to affected patients two months later, on or around April 16, 2018. HIPAA-covered entities have up to 60 days following the discovery of a data breach to issue notifications to patients. Many healthcare organizations wait before issuing breach notifications and submitting reports of the incident to the Department of Health and Human Services’ Office for Civil Rights. Waiting for two months to issue notifications to breach victims could be viewed as a violation of HIPAA Rules. While the maximum time limit for reporting was not exceeded, the HIPAA Breach Notification Rule requires notifications to be sent ‘without unnecessary delay.’ The HHS’ Office for...

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Capital Digestive Care Notifies 17,639 Individuals of PHI Exposure
May08

Capital Digestive Care Notifies 17,639 Individuals of PHI Exposure

The Silver Spring, MD-based gastroenterology group Capital Digestive Care has discovered one of its business associates uploaded files to a commercial cloud server that lacked appropriate security controls, exposing the protected health information of up to 17,639 patients. The availability of sensitive patient data over the Internet was brought to the attention of Capital Digestive Care on February 23, 2018 and action was promptly taken to secure the files and prevent further unauthorized access. An investigation into the privacy breach was launched to determine the types of information that had been exposed and the number of patients impacted. The investigation confirmed some sensitive data had been exposed, although the breach was limited to individuals that had visited its website and submitted information via the Schedule a Visit and Contact pages on the site. The types of information exposed was limited to names, addresses, email addresses, telephone numbers, and birth dates. Patients may also have had a limited amount of health information exposed. The login page to the...

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3 University of Arkansas Medical Sciences Employees Fired for Violation of Patient Privacy
May07

3 University of Arkansas Medical Sciences Employees Fired for Violation of Patient Privacy

University of Arkansas Medical Sciences (UAMS) has fired three employees over alleged HIPAA violations that saw a patient’s protected health information impermissibly disclosed and published on Facebook. UAMS provides training to all employees to make them aware of their responsibilities with respect to patient privacy and the requirements of HIPAA, yet despite that training, one employee violated the privacy of a patient by disclosing that individual’s name, age, HIV status, employment information, and surgical history to a colleague. That employee shared the information with a friend who uploaded the PHI to Facebook. A third employee allegedly played no part in the violation but was aware of the disclosures yet failed to report the incident to the hospital. The hospital took prompt action when the HIPAA violations were discovered and terminated all three employees for violating HIPAA Rules and the hospital’s code of conduct. The hospital is taking steps to ensure similar incidents are prevented and is working with the patient to resolve the privacy violation. The motives of the...

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Massachusetts Physician Convicted for Criminal HIPAA Violation
May04

Massachusetts Physician Convicted for Criminal HIPAA Violation

Criminal penalties for HIPAA violations are relatively rare, although the Department of Justice does pursue criminal charges for HIPAA violations when there has been a serious violation of patient privacy, such as an impermissible disclosure of protected health information for financial gain or malicious purposes. One such case has resulted in two criminal convictions – a violation of the Health Insurance Portability and Accountability Act and obstructing a criminal healthcare investigation. The case relates to the DOJ investigation of the pharmaceutical firm Warner Chilcott over healthcare fraud. In 2015, Warner Chilcott plead guilty to paying kickbacks to physicians for prescribing its drugs and for manipulating prior authorizations to induce health insurance firms to pay for prescriptions. The case was settled with the DOJ for $125 million. Last week, a Massachusetts gynecologist, Rita Luthra, M.D., 67, of Longmeadow, was convicted for violating HIPAA by providing a Warner Chilcott sales representative with access to the protected health information of patients for a period of...

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OCR Encourages Healthcare Organizations to Conduct a Gap Analysis
May01

OCR Encourages Healthcare Organizations to Conduct a Gap Analysis

In its April 2018 cybersecurity newsletter, OCR draws attention to the benefits of performing a gap analysis in addition to a risk analysis. The latter is required to identify risks and vulnerabilities that could potentially be exploited to gain access to ePHI, while a gap analysis helps healthcare organizations and their business associates determine the extent to which they are compliant with specific elements of the HIPAA Security Rule. The Risk Analysis HIPAA requires covered entities and their business associates to perform a comprehensive, organization-wide risk analysis to identify all potential risks to the confidentiality, integrity, and availability of ePHI – 45 CFR § 164.308(a)(1)(ii)(A). If a risk analysis is not performed, healthcare organizations cannot be certain that all potential vulnerabilities have been identified. Vulnerabilities would likely remain that could be exploited by threat actors to gain access to ePHI. While HIPAA does not specify the methodology that should be used when conducting risk analyses, OCR explained in its newsletter that risk...

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Study Reveals Healthcare Industry Employees Struggling to Understand Data Security Risks
Apr30

Study Reveals Healthcare Industry Employees Struggling to Understand Data Security Risks

The recently published Beyond the Phish Report from Wombat Security, now a division of Proofpoint, has revealed healthcare employees have a lack of understanding of common security threats. For the report, Wombat Security compiled data from nearly 85 million questions and answers posed to customers’ end users across 12 categories and 16 industries. Respondents were asked about security best practices that would help them avoid ransomware attacks, malware installations, and phishing attacks and established the level of expertise at protecting confidential information, defending against email and web-based scams, securing mobile devices, working safely in remote locations, identifying physical risks, disposing of sensitive information securely, using strong passwords, and safe use of social media and the web. Overall, the healthcare industry performed second worst for security awareness, just ahead of the hospitality industry, with the survey highlighting several areas of weakness that could potentially be exploited by cybercriminals to gain access to healthcare networks and...

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How to Defend Against Insider Threats in Healthcare
Apr26

How to Defend Against Insider Threats in Healthcare

One of the biggest data security challenges is how to defend against insider threats in healthcare. Insiders are responsible for more healthcare data breaches than hackers, making the industry unique. Verizon’s Protected Health Information Data Breach Report highlights the extent of the problem. The report shows 58% of all healthcare data breaches and security incidents are the result of insiders. Healthcare organizations also struggle to detect insider breaches, with many breaches going undetected for months or even years. One healthcare employee at a Massachusetts hospital was discovered to have been accessing healthcare records without authorization for 14 years before the privacy violations were detected, during which time the records of more than 1,000 patients had been viewed. Healthcare organizations must not only take steps to reduce the potential for insider breaches, they should also implement technological solutions, policies, and procedures that allow breaches to be detected rapidly when they do occur. What are Insider Threats? Before explaining how healthcare...

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Report: Healthcare Data Breaches in Q1, 2018
Apr24

Report: Healthcare Data Breaches in Q1, 2018

The first three months of 2018 have seen 77 healthcare data breaches reported to the Department of Health and Human Services’ Office for Civil Rights (OCR). Those breaches have impacted more than one million patients and health plan members – Almost twice the number of individuals that were impacted by healthcare data breaches in Q4, 2017. There was a 10.5% fall in the number of data breaches reported quarter over quarter, but the severity of breaches increased. The mean breach size increased by 130.57% and there was a 15.37% increase in the median breach size. In Q4, 2017, the mean breach size was 6,048 healthcare records and the median breach size was 1,666 records. In Q1, 2018, the mean breach size was 13,945 records and the median breach size was 1,922 records. Between January 1 and March 31, 2018, 1,073,766 individuals had their PHI exposed, viewed, or stolen compared to 520,141 individuals in Q4, 2017. Individuals Impacted by Healthcare Data Breaches in Q1, 2018 Throughout 2017, healthcare data breaches were occurring at a rate of more than one per day. Compared to 2017,...

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Healthcare Compliance Programs Not In Line With Expectations of Regulators
Apr23

Healthcare Compliance Programs Not In Line With Expectations of Regulators

Healthcare compliance officers are prioritizing compliance with HIPAA Privacy and Security Rules, even though the majority of Department of Justice and the HHS Office of Inspector General enforcement actions are not for violations of HIPAA or security breaches, but corrupt arrangements with referral sources and false claims. There are more penalties issued by regulators for these two compliance failures than penalties for HIPAA violations. HIPAA enforcement by the HHS’ Office for Civil Rights has increased, yet the liabilities to healthcare organizations from corrupt arrangements with referral sources and false claims are far higher. Even so, these aspects of compliance are relatively low down the list of priorities, according to a recent survey of 388 healthcare professionals conducted by SAI Global and Strategic Management Services. The survey was conducted on compliance officers from healthcare organizations of all sizes, from small physician practices to large integrated hospital systems. The aim of the study was to identify the key issues faced by compliance officers and...

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FDA Develops Five-Point Action Plan for Improving Medical Device Cybersecurity
Apr20

FDA Develops Five-Point Action Plan for Improving Medical Device Cybersecurity

The past few years have seen an explosion in the number of medical devices that have come to market. While those devices have allowed healthcare providers and patients to monitor and manage health in more ways that has ever been possible, concerns have been raised about medical device cybersecurity. Medical devices collect, store, receive, and transmit sensitive information either directly or indirectly through the systems to which they connect. While there are clear health benefits to be gained from using these devices, any device that collects, receives, stores, or transmits protected health information introduces a risk of that information being exposed. The FDA reports that in the past year, a record number of novel devices have been approved for use in the United States and that we are currently enjoying “an unparalleled period of invention in medical devices.” The FDA is encouraging the development of novel devices to address health needs, while balancing the risks and benefits. The FDA has been working closely with healthcare providers, patients, and device manufacturers to...

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Version 1.1 of the NIST Cybersecurity Framework Released
Apr18

Version 1.1 of the NIST Cybersecurity Framework Released

On April 16, 2018, The National Institute of Standards and Technology released an updated version of its Framework for Improving Critical Infrastructure Cybersecurity (Cybersecurity Framework). The Cybersecurity Framework was first issued in February 2014 and has been widely adopted by critical infrastructure owners and public and private sector organizations to guide their cybersecurity programs. While intended for use by critical infrastructure industries, the flexibility of the framework means it can also be adopted by a wide range of businesses, large and small, including healthcare organizations. The Cybersecurity Framework incorporates guidelines, standards, and best practices and offers a flexible approach to cybersecurity. There are several ways that the Framework can be used with ample scope for customization. The Framework helps organizations address different threats and vulnerabilities and matches various levels of risk tolerance. The Framework was intended to be a living document that can be updated and improved over time in response to feedback from users, changing...

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Analysis of March 2018 Healthcare Data Breaches
Apr16

Analysis of March 2018 Healthcare Data Breaches

There has been a month-over-month increase in healthcare data breaches. In March 2018, 29 security incidents were reported by HIPAA covered entities compared to 25 incidents in February. Even though more data breaches were reported in March, there was a fall in the number of individuals impacted by breaches. March 2018 healthcare data breaches saw 268,210 healthcare records exposed – a 13.13% decrease from the 308,780 records exposed in incidents in February. Causes of March 2018 Healthcare Data Breaches March saw the publication of the Verizon Data Breach Investigations Report which confirmed the healthcare industry is the only vertical where more data breaches are caused by insiders than hackers. That trend continued in March. Unauthorized access/disclosures, loss of devices/records, and improper disposal incidents were behind 19 of the 29 incidents reported – 65.5% of all incidents reported in March. The main cause of healthcare data breaches in March 2018 was unauthorized access/disclosure incidents. 14 incidents were reported, with theft/loss incidents the second main cause...

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HHS Report Offers Tips to Prevent and Block SamSam Ransomware Attacks
Apr13

HHS Report Offers Tips to Prevent and Block SamSam Ransomware Attacks

The high volume of SamSam ransomware attacks on healthcare and government organizations in recent months has prompted the Department of Health and Human Services’ Healthcare Cybersecurity and Communications Integration Center (HCCIC) to issue a report of ongoing SamSam ransomware campaigns. The report includes tips to help organizations detect and block SamSam ransomware attacks. There Have Been 10 Major SamSam Ransomware Attacks in the Past 4 Months Since December 2017, there have been 10 major attacks, mostly on government and healthcare organizations in the United States. Additional attacks have been reported in Canada and India. In January 2018, the EHR provider AllScripts experienced an attack that saw its systems taken out of action for several days, preventing around 1,500 medical practices from accessing patient data. In some cases, those practices were prevented from accessing patient data for as long as a week. In March 2018, the City of Atlanta was forced to shut down its IT systems to halt the spread of the ransomware. In that case, the attack leveraged a Windows Server...

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How Long Does It Take to Breach a Healthcare Network?
Apr13

How Long Does It Take to Breach a Healthcare Network?

A recent survey of hackers, incident responders, and penetration testers has revealed the majority can gain access to a targeted system within 15 hours, but more than half of hackers (54%) take less than five hours to gain access to a system, and identify and exfiltrate sensitive data. 61% of Surveyed Hackers Took Less than 15 Hours to Obtain Healthcare Data The data comes from the second annual Nuix Black Report and its survey of 112 hackers and penetration testers, 79% of which were based in the United States. Respondents were asked about the time it takes to conduct attacks and steal data, the motivations for attacks, the techniques used, and the industries that offered the least resistance. While the least protected industries were hospitality, retail, and the food and beverage industry, healthcare organizations were viewed as particularly soft targets. Healthcare, along with law firms, manufacturers, and sports and entertainment companies had below average results and were relatively easy to attack. As Nuix points out, many of the industries that were rated as soft targets are...

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2 to 6 Year Jail Term for Receptionist Who Stole PHI from Dentist Office
Apr11

2 to 6 Year Jail Term for Receptionist Who Stole PHI from Dentist Office

A former receptionist at a New York dental practice has been sentenced to serve 2 to 6 years in state penitentiary for stealing the protected health information of hundreds of patients. Annie Vuong, 31, was given access to the computer system and dental records of patients in order to complete her work duties. Vuong abused the access rights and stole the PHI of more than 650 patients. That information was passed to her co-defendants who used the data to steal identities and make fraudulent purchases of high value items. Vuong was arrested on February 2, 2015, following a two-and-a-half-year investigation into identity theft by the New York District Attorney’s Office. The theft of data occurred between May and November 2012, when the PHI of 653 patients was taken from the dental office. The types of information stolen included names, birth dates, and Social Security numbers. That information was shared with co-defendant Devin Bazile in an email. Bazile used the information to obtain credit lines from Barclaycard in the victims’ names. Credit ranged from $2,000 to $7,000 per...

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Lack of Security Awareness Training Leaves Healthcare Organizations Exposed to Cyberattacks
Apr09

Lack of Security Awareness Training Leaves Healthcare Organizations Exposed to Cyberattacks

A recent study conducted by the Ponemon Institute on behalf of Merlin International has revealed healthcare organizations are failing to provide sufficient security awareness training to their employees, which is hampering efforts to improve their security posture. Phishing is a major security threat and the healthcare industry is being heavily targeted. Phishing offers threat actors an easy way to bypass healthcare organizations’ security defenses. Threat actors are now using sophisticated tactics to evade detection by security solutions and get their emails delivered. Social engineering techniques are used to fool employees into responding to phishing emails and disclose their login credentials or install malware. Phishing is used in a high percentage of cyberattacks on healthcare organizations. Research conducted by Cofense (formerly PhishMe) suggests as many as 91% of cyberattacks start with a phishing email. While security solutions can be implemented to block the majority of phishing emails from being delivered to end users’ inboxes, it is not possible to block 100% of...

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Virtua Medical Group Fined $418,000 for Violations of HIPAA and New Jersey Law
Apr05

Virtua Medical Group Fined $418,000 for Violations of HIPAA and New Jersey Law

Virtua Medical Group – A network of physicians affiliated to over 50 medical practices in New Jersey – has been financially penalized by the New Jersey Attorney General’s Office for failing to protect the privacy of more than 1,650 patients whose medical information was accessible online without the need for any authentication. The electronic protected health information was exposed as a result of a misconfigured server. The error occurred at a business associate of the medical group – Best Medical Transcription – which had been provided with audio files to transcribe medical notes. Best Medical Transcription was contracted to transcribe dictations of medical notes, reports, and letters from three New Jersey medical practices: Virtua Pain and Spine Specialists in Voorhees, Virtua Gynecological Oncology Specialists, and Virtua Surgical Group in Hainesport. The transcribed notes were uploaded to a password-protected FTP website; however, in January 2016 during a software upgrade on the FTP server, the password protection was accidentally removed allowing patient...

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Patient Guidebook on Health Record Access Published by ONC
Apr05

Patient Guidebook on Health Record Access Published by ONC

A new patient guidebook on health record access has been published by the Department of Health and Human Services’ Office of the National Coordinator for Health IT (ONC). The guidebook explains how patients can access their health data, offers tips for checking health records and correcting mistakes, and explains how patients can use their health records and share their health data. The HIPAA Privacy Rule gave patients the right to obtain copies of health information held by their providers, yet even though the Privacy Rule became effective on April 14, 2001, many Americans are still not aware of their right to access their health data or how they can do so. Improving patient access to health data is a top priority for the HHS and ONC. In 2016, ONC released a series of videos for patients in which their right to access their own health data was explained. The latest guidebook takes that guidance a step further and serves as a practical guide to obtaining copies of electronic heath data to make the process as easy as possible. The ONC Guide to Getting and Using your Health Data is...

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Alabama Governor Enacts Data Breach Notification Act
Apr04

Alabama Governor Enacts Data Breach Notification Act

Alabama has become the 50th state to require companies to issue breach notifications to individuals whose personal information has been exposed or compromised as a result of a data breach. Governor Kay Ivey signed the act into law on March 28. The effective date is May 1, 2018. The data breach notification law has taken a long time to be enacted although Alabama residents will now have some of the best protections in the country, with the law one of the strictest introduced in any state. While every state now has a data breach notification law that requires notifications to be issued to all individuals impacted by a data breach, only 28% of U.S. states – including Alabama – also require ‘covered entities’ to maintain reasonable security measures to protect the confidentiality of sensitive personally identifying information of state residents. Service providers must also be contractually required to maintain appropriate safeguards. Sensitive personally identifying information is classed as a state resident’s first name or first initial and last name in combination with any of...

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Verizon PHI Breach Report Confirms Healthcare Has Major Problem with Insider Breaches
Apr03

Verizon PHI Breach Report Confirms Healthcare Has Major Problem with Insider Breaches

Verizon has released its annual Protected Health Information Breach Report which delves deep into the main causes of breaches, why they occur, the motivations of internal and external threat actors, and the main threats to the confidentiality, integrity, and availability of PHI. For the report, Verizon analyzed 1,368 healthcare data breaches and incidents where protected health information (PHI) was exposed but not necessarily compromised. The data came from 27 countries, although three quarters of the breached entities were based in the United States where there are stricter requirements for reporting PHI incidents. In contrast to all other industry sectors, the healthcare industry is unique as the biggest security threat comes from within. Insiders were responsible for almost 58% of all breaches with external actors confirmed as responsible for just 42% of incidents. The main reason for insider breaches is financial gain. PHI is stolen to commit identity theft, credit card fraud, insurance fraud, and tax fraud. Verizon determined that 48% of all internal incidents were conducted...

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South Dakota Enacts Data Breach Notification Law as Congress Considers Federal Breach Notice Bill
Mar28

South Dakota Enacts Data Breach Notification Law as Congress Considers Federal Breach Notice Bill

South Dakota has been slow to introduce legislation to improve protections for consumers affected by breaches of their personal information. Laws have already been introduced in 48 states that require individuals and companies that store personal information to issue notifications to breach victims when that information is compromised. Last week, South Dakota residents were given similar protections to those in place in neighboring states. On March 21, 2018, South Dakota attorney general Marty Jackley issued a statement confirming SB 62 had been signed by Governor Daugaard and will take effect on July 1, 2018. The bipartisan bill requires entities that experience a breach of personal information to issue notifications to affected state residents within 60 days of discovery of the breach – The same time frame as HIPAA. Personal information is classed as the full name or first initial and last name of a state resident in combination with either a government ID number, Social Security number, driver’s license number, credit/debit card number (with an associated code that allows the...

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Research Suggests Healthcare Data Breaches Cause 2,100 Deaths a Year
Mar27

Research Suggests Healthcare Data Breaches Cause 2,100 Deaths a Year

A researcher at Vanderbilt University has conducted a study that suggests mortality rates at hospitals increase following a data breach as a result of a drop in the standard of care. The researcher estimates healthcare data breaches may cause as many as 2,100 deaths a year in the United States. The study was conducted by Owen Graduate School of Management researcher, Dr. Sung Choi. The findings of the study were presented at a recent cyberrisk quantification conference at Philadelphia’s Drexel University LeBow College of Business. Cyberattacks can have a direct impact on patient care, which has been clearly highlighted on numerous occasions over the past 12 months. Ransomware and wiper malware attacks have crippled information systems and have forced healthcare providers to cancel appointments, while the lack of access to patient health records can cause treatment delays. Notable attacks that caused major disruption were the NotPetya wiper and WannaCry ransomware attacks last year, with the latter causing major problems for the National Health Service in the UK. Choi explained that...

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HIPAA Rules on Contingency Planning
Mar27

HIPAA Rules on Contingency Planning

In its March 2018 cybersecurity newsletter, OCR explained HIPAA Rules on contingency planning and urged healthcare organizations to plan for emergencies to ensure a return to normal operations can be achieved in the shortest possible time frame. A contingency plan is required to ensure that when disaster strikes, organizations know exactly what steps must be taken and in what order. Contingency plans should cover all types of emergencies, such as natural disasters, fires, vandalism, system failures, cyberattacks, and ransomware incidents. The steps that must be taken for each scenario could well be different, especially in the case of cyberattacks vs. natural disasters. The plan should incorporate procedures to follow for specific types of disasters. Contingency planning is not simply a best practice. It is a requirement of the HIPAA Security Rule. Contingency planning should not be considered a onetime checkbox item necessary for HIPAA compliance. It should be an ongoing process with plans regularly checked, updated, and tested to ensure any deficiencies are identified and...

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Class Action Lawsuit Seeks Damages for Victims of CVS Caremark Data Breach
Mar26

Class Action Lawsuit Seeks Damages for Victims of CVS Caremark Data Breach

An alleged healthcare data breach that saw the protected health information of patients of CVS Caremark exposed has resulted in legal action against CVS, Caremark, and its mailing vendor, Fiserv. The lawsuit, which was filed in Ohio federal court on March 21, 2018, relates to an alleged privacy breach that occurred as a result of an error that affected a July/August 2017 mailing sent to approximately 6,000 patients. In July 2017, CVS Caremark was contracted to operate as the pharmacy benefits manager for the Ohio HIV Drug Assistance Program (PhDAP), and under that program, CVS Caremark provides eligible patients with HIV medications and communicates with them about prescriptions. In July/August 2017, CSV Caremark’s mailing vendor Fiserve sent letters to patients containing their membership cards and information about how they could obtain their HIV medications. In the lawsuit the complaint alleges HIV-related information was clearly visible through the plastic windows of the envelopes, allowing the information to be viewed by postal service workers, family members, and roommates....

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ATI Physical Therapy Data Breach Impacts 35,000 Patients
Mar22

ATI Physical Therapy Data Breach Impacts 35,000 Patients

ATI Physical Therapy has discovered the protected health information of more than 35,000 patients has potentially been compromised when threat actors gained access to the email accounts of some of its employees. A security breach was identified on January 18, 2018 when ATI Physical Therapy discovered the direct deposit information of some of its employees had been changed in its payroll platform. Prompt action was taken to protect its employees and external forensic investigators were called in to determine the full extent and scope of the breach. The investigation revealed the email accounts of certain employees had been compromised and were accessed by unauthorized individuals between January 9 and January 12, 2018. An analysis of the emails in the accounts revealed they contained the protected health information of tens of thousands of patients. The types of information potentially compromised varied per impacted individual, but may have included names, dates of birth, credit/debit card numbers, driver’s license numbers, state ID numbers, Social Security numbers,...

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Banner Health Anticipates Potential Financial Penalty from OCR over 2016 Cyberattack
Mar22

Banner Health Anticipates Potential Financial Penalty from OCR over 2016 Cyberattack

According to a financial report issued by Banner Health, OCR is investigating the colossal 2016 Banner Health data breach which saw the protected health information of 3.7 million patients exposed. The breach involved Banner Health facilities at 27 locations in Alaska, Arizona, California, Colorado, Nebraska, Nevada, and Wyoming and resulted in the exposure of highly sensitive protected health information including names, dates of birth, Social Security numbers, and health insurance information. The attackers gained access to the payment processing system used in its food and beverage outlets with a view to obtaining credit card numbers. However, once access to the network was gained, they also accessed servers containing PHI. Banner Health reports that it has cooperated with OCR’s investigation into the breach and has supplied information as requested. However, OCR was not satisfied with its response and the evidence supplied on its HIPAA compliance efforts. Specifically, OCR was not satisfied with the documentation supplied to demonstrate “past security assessment activities”...

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Jail Terms for HIPAA Violations by Employees
Mar22

Jail Terms for HIPAA Violations by Employees

The penalties for HIPAA violations by employees can be severe, especially those involving the theft of protected health information. HIPAA violations by employees can attract a fine of up to $250,000 with a maximum jail term of 10 years and a 2-year jail term for aggravated identity theft. This month there have been two notable cases of HIPAA violations by employees, one of which has resulted in a fine and imprisonment, with the other likely to result in a longer spell in prison when sentencing takes place in June. Jail Term for Former Transformations Autism Treatment Center Employee In February, a former behavioral analyst at the Transformations Autism Treatment Center (TACT) was discovered to have stolen the protected health information of patients following termination. Jeffrey Luke, 29, of Collierville, TN gained access to a TACT Google Drive account containing the PHI of patients following termination and downloaded the PHI of 300 current and former patients onto his personal computer. Approximately one month after Luke was terminated, TACT discovered patient information had...

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Healthcare Data Breach Statistics
Mar20

Healthcare Data Breach Statistics

We have compiled healthcare data breach statistics from October 2009 when the Department of Health and Human Services’ Office for Civil Rights first started publishing summaries of healthcare data breaches on its website. The healthcare data breach statistics below only include data breaches of 500 or more records as smaller breaches are not published by OCR. The breaches include closed cases and breaches still being investigated by OCR. Our healthcare data breach statistics clearly show there has been an upward trend in data breaches over the past 9 years, with 2017 seeing more data breaches reported than any other year since records first started being published. There have also been notable changes over the years in the main causes of breaches. The loss/theft of healthcare records and electronic protected health information dominated the breach reports between 2009 and 2015, although better policies and procedures and the use of encryption has helped reduce these easily preventable breaches. Our healthcare data breach statistics show the main causes of healthcare data breaches...

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Analysis of February 2018 Healthcare Data Breaches
Mar19

Analysis of February 2018 Healthcare Data Breaches

Our February 2018 healthcare data breach report details the major data breaches reported by healthcare providers, health plans, and business associates in February 2018. Summary of February 2018 Healthcare Data Breaches February may have been a shorter month, but there was an increase in the number of healthcare data breaches reported to the Department of Health and Human Services’ Office for Civil Rights. In February, HIPAA covered entities and business associates reported 25 breaches – a 19% month on month increase in breaches. While there was a higher breach tally this month, the number of healthcare records exposed as a result of healthcare data breaches fell by more than 100,000. In January 428,643 healthcare records were exposed. February 2018 healthcare data breaches saw 308,780 healthcare records exposed. Largest Healthcare Data Breaches of February 2018 The largest healthcare data breaches reported to the Office for Civil Rights in February are listed below. Covered Entity Covered Entity Type Individuals Affected Type of Breach Location of PHI St. Peter’s Surgery...

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Multiple Email Accounts Compromised at Primary Health Care
Mar18

Multiple Email Accounts Compromised at Primary Health Care

Primary Health Care Inc., a non-profit network of community health centers in Des Moines, Marshalltown and Ames, IA, has discovered malicious actors have gained access to the email accounts of four employees and have potentially viewed or obtained patients’ protected health information. Primary Health Care issued a press release and uploaded a substitute breach notice to its website on March 16, 2018 explaining the breach occurred on February 28, 2017. The breach was detected the following day on March 1, 2017. Primary Health Care is in the process of notifying affected patients and will be reporting the incident to the Department of Health and Human Services’ Office for Civil Rights. No explanation is provided as to why the breach took a year to report. Primary Health Care responded quickly to the breach and terminated access to the compromised email accounts and hired a third-party computer forensics expert to conduct an investigation into the attack. The investigation revealed access to four email accounts and their associated Google Drives was gained by the attacker(s),...

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Survey Reveals 62% of Healthcare Organizations Have Experienced a Data Breach in the Past Year
Mar14

Survey Reveals 62% of Healthcare Organizations Have Experienced a Data Breach in the Past Year

A recent Ponemon Institute survey has revealed 62% of healthcare organizations have experienced a data breach in the past 12 months. More than half of those organizations experienced data loss as a result. The Merlin International sponsored survey was conducted on 627 healthcare industry leaders from hospitals and payer organizations. 67% of respondents worked in hospitals with 100-500 beds and had an estimated 10,000 to 100,000 networked devices. Last year more than 5 million healthcare records were exposed or stolen, and the healthcare was the second most targeted industry behind the business sector. 2017 was the fourth consecutive year that the healthcare industry has been second for data breaches and there are no signs that cyberattacks are likely to reduce over the coming year. Even though there is a high probability of experiencing a cyberattack, 51% of surveyed organizations have yet to implement an incident response program. This lack of preparedness can hamper recovery if a cyberattack is experienced. As the Cost of a Data Breach Study by the Ponemon Institute showed, a...

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What is a HIPAA Violation?
Mar14

What is a HIPAA Violation?

Barely a day goes by without a news report of a hospital, health plan, or healthcare professional violating HIPAA, but what is a HIPAA violation and what happens when a violation occurs? What is a HIPAA Violation? The Health Insurance Portability and Accountability Act of 1996 is a landmark piece of legislation that was introduced to simplify the administration of healthcare, eliminate wastage, prevent healthcare fraud, and ensure that employees could maintain healthcare coverage when between jobs. There have been notable updates to HIPAA to improve privacy protections for patients and health plan members over the years which help to ensure healthcare data is safeguarded and the privacy of patients is protected. Those updates include the HIPAA Privacy Rule, HIPAA Security Rule, HIPAA Omnibus Rule, and the HIPAA Breach Notification Rule. A HIPAA violation is a failure to comply with any aspect of HIPAA standards and provisions detailed in detailed in 45 CFR Parts 160, 162, and 164. The combined text of all HIPAA regulations published by the Department of Health and Human Services...

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2018 HIPAA Changes and Enforcement Outlook
Mar13

2018 HIPAA Changes and Enforcement Outlook

Are there likely to be major 2018 HIPAA changes? What does this year have in store in terms of new HIPAA regulations? OCR Director Roger Severino has hinted there could be some 2018 HIPAA changes and that HIPAA enforcement in 2018 is unlikely to slowdown. Are Major 2018 HIPAA Changes Likely? The Trump administration has made it clear that there should be a decrease rather than an increase in regulation in the United States. In January 2017, Trump signed an executive order calling for a reduction in regulation, which was seen to be hampering America’s economic growth. At the time Trump said, “If there’s a new regulation, they have to knock out two. But it goes far beyond that, we’re cutting regulations massively for small business and for large business.” While Trump was not specifically referring to healthcare, it is clear we are currently in a period of deregulation. Trump’s words were recently echoed by Severino at the HIMSS conference who confirmed the HSS understands deregulation in some areas is required before further regulations can be introduced. Therefore, there are...

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HIPAA Social Media Rules
Mar12

HIPAA Social Media Rules

HIPAA was enacted several years before social media networks such as Facebook were launched, so there are no specific HIPAA social media rules; however, there are HIPAA laws and standards that apply to social media use by healthcare organizations and their employees. Healthcare organizations must therefore implement a HIPAA social media policy to reduce the risk of privacy violations. There are many benefits to be gained from using social media. Social media channels allow healthcare organizations to interact with patients and get them more involved in their own healthcare. Healthcare organizations can quickly and easily communicate important messages or provide information about new services. Healthcare providers can attract new patients via social media websites. However, there is also considerable potential for HIPAA Rules and patient privacy to be violated on social media networks. So how can healthcare organizations and their employees use social media without violating HIPAA Rules? HIPAA and Social Media The first rule of using social media in healthcare is to never disclose...

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HIMSS Survey Reveals Top Healthcare Security Threats
Mar09

HIMSS Survey Reveals Top Healthcare Security Threats

HIMSS has published the results of its annual healthcare cybersecurity survey, which provides insights into the state of cybersecurity in healthcare and identifies the top healthcare security threats. The HIMSS 2018 cybersecurity survey was conducted on 239 respondents from the healthcare industry between December 2017 and January 2018. The results of the survey were announced at the HIMSS 2018 Conference & Exhibition in Las Vegas. 36.8% of respondents had positions in executive management and 37.2% were employed in non-executive management positions. The remaining 25.9% were in non-management positions such as cybersecurity specialists and analysts. 41.2% of respondents were primarily responsible for cybersecurity, 32.6% had some responsibility, and 11.8% sometimes had responsibility for cybersecurity. Most Healthcare Organizations Have Experienced a Significant Security Incident in the Past 12 Months The threat of healthcare cyberattacks is greater than ever and the past 12 months has been a torrid year. In the past 12 months, 75.7% of respondents said they had experienced a...

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EmblemHealth Fined $575,000 by NY Attorney General for HIPAA Breach
Mar07

EmblemHealth Fined $575,000 by NY Attorney General for HIPAA Breach

A 2016 mailing error by EmblemHealth that saw the Health Insurance Claim Numbers of 81,122 plan members printed on the outside of envelopes has resulted in a $575,000 settlement with the New York Attorney General. While all mailings include a unique patient identifier on the envelope, in this case the potential for harm was considerable as Health Insurance Claim numbers are formed using the Social Security numbers of plan members. Announcing the settlement, New York Attorney General Eric T. Schneiderman explained that Health Insurance Portability and Accountability Act (HIPAA) Rules require HIPAA covered entities to implement administrative, physical, and technical safeguards to ensure the confidentiality of patients’ and plan members’ protected health information. The error that saw Social Security numbers exposed violated HIPAA Rules. EmblemHealth failed to comply with “many standards and procedural specifications” required by HIPAA. Attorney General Schneiderman also said that printing Social Security numbers on the outside of envelopes violated New York General Business Law §...

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New York Surgery & Endoscopy Center Discovers 135,000-Record Data Breach
Mar05

New York Surgery & Endoscopy Center Discovers 135,000-Record Data Breach

A malware infection at St. Peter’s Surgery & Endoscopy Center in New York has potentially allowed hackers to gain access to the medical records of almost 135,000 patients. This is the second largest healthcare data breach of 2018, the largest to hit New York state since the 3,466,120-record data breach at Newkirk Products, Inc. in August 2016, and the fifth largest healthcare data breach in New York since the Department of Health and Human Services’ Office for Civil Rights started publishing data breach summaries in October 2009. The data breach at St. Peter’s Surgery & Endoscopy Center was discovered on January 8, 2018: The same day as hackers gained access to its server. The rapid detection of the malware limited the time the hackers had access to the server and potentially prevented patients’ data from being viewed or copied. However, while no evidence of data access or data theft was discovered, it was not possible to rule either out with a high degree of certainty. In its substitute branch notice, St. Peter’s Surgery & Endoscopy Center says the servers it uses...

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Window Envelope Privacy Breach Exposes ID Numbers of 70,320 Tufts Health Plan Members
Mar02

Window Envelope Privacy Breach Exposes ID Numbers of 70,320 Tufts Health Plan Members

Tufts Health Plan is alerting 70,320 of its members that their health plan member ID numbers have been exposed. A mailing vendor used by Tufts Health Plan sent Tufts Medicare Preferred ID cards to Medicare Advantage members between December 11, 2017 and January 2, 2018. Window envelopes were used which naturally allowed plan members’ names and addresses to be seen, but Tufts Health Plan member IDs were also visible through the plastic windows of the envelopes. The mailing error was discovered by Tufts Health Plan on January 18. Tufts Health Plan notes that its member IDs are not comprised of Social Security numbers or Medicare numbers, but potentially the member ID numbers could be misused by individuals to receive services covered by the health plan. Legal experts were consulted about the breach to assess the potential risk to plan members. The risk of misuse of the numbers is believed to be very low as the only individuals likely to see the member IDs would be employees of the postal service. Plan members have been told that in the unlikely event that their member IDs are misused...

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Hacking Responsible for 83% of Breached Healthcare Records in January
Mar01

Hacking Responsible for 83% of Breached Healthcare Records in January

The latest installment of the Protenus Healthcare Breach Barometer report has been released. Protenus reports that overall, at least 473,807 patient records were exposed or stolen in January, although the number of individuals affected by 11 of the 37 breaches is not yet known. The actual total is likely to be considerably higher, possibly taking the final total to more than half a million records. The report shows insiders are continuing to cause problems for healthcare organizations. Insiders were the single biggest cause of healthcare data breaches in January. Out of the 37 healthcare data breaches reported in January 12 were attributed to insiders – 32% of all data breaches. While insiders were the main cause of breaches, the incidents affected a relatively low number of individuals – just 1% of all records breached. Insiders exposed 6,805 patient records, although figures could only be obtained for 8 of the 12 breaches. 7 incidents were attributed to insider error and five were due to insider wrongdoing. Protenus has drawn attention to one particular insider breach. A nurse...

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Medical University of South Carolina’s Hard Line on HIPAA Violations Sees 13 Fired in a Year
Feb27

Medical University of South Carolina’s Hard Line on HIPAA Violations Sees 13 Fired in a Year

According to a recent report in the Post and Courier, the Medical University of South Carolina (MUSC) terminated 13 employees last year for violating HIPAA Rules by snooping on patient records. In total, there were 58 privacy violations in 2017 at MUSC, all of which have been reported to the Department of Health and Human Services’ Office for Civil Rights. All of the breaches affected only small numbers of patients. Out of the 58 breaches, 11 incidents were categorized as snooping on medical records. Other breaches were unauthorized disclosures such as when the health information of a patient is accidentally sent or faxed to the wrong person. Over the past five years, there have been 307 breaches detected at MUSC, resulting in 30 members of non-physician staff being fired. None of the breaches have been listed on the OCR breach portal, which only shows breaches impacting 500 or more individuals. Under HIPAA Rules, all PHI breaches must be reported, although it is only large breaches of more than 500 records that are made public and are detailed on the breach portal. The revelations...

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OPM Alleges Health Net Refused to Fully Comply with Recent Security Audit
Feb26

OPM Alleges Health Net Refused to Fully Comply with Recent Security Audit

The U.S. Office of Personnel Management (OPM) Office of the Inspector General Office of Audits (OIG) has issued a Flash Audit Alert alleging Health Net of California has refused to cooperate with a recent security audit. Health Net provides benefits to federal employees, and under its contract with OPM, is required to submit to audits. OPM has been conducting security audits on FEHBP insurance carriers for the past 10 years, which includes scanning for vulnerabilities that could potentially be exploited to gain access to the PHI of FEHBP members. When OPM conducts audits, it is focused on the information systems that are used to access or store the data of Federal Employee Health Benefit Program (FEHBP) members. However, OPM points out that many insurance carriers do not segregate the data of FEHBP members from the data of commercial and other Federal customers. Audits of technical infrastructure need to be conducted on all parts of the system that have a logical or physical nexus with FEHBP data. Consequently, systems containing data other than that of FEHBP members will similarly...

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1,900 UVA Patients’ PHI Accessed by Hacker Behind FruitFly Malware
Feb22

1,900 UVA Patients’ PHI Accessed by Hacker Behind FruitFly Malware

Almost 1,900 patients of University of Virginia Health System are being notified that an unauthorized individual has gained access to their medical records as a result of a malware infection. The malware had been loaded onto the devices used by a physician at UVa Medical Center. When medical records were accessed by the physician, the malware allowed the hacker to view the data in real time. The malware was first loaded onto the physician’s electronic devices on May 3, 2015, with access possible until December 27, 2016. Over those 19 months, the hacker was able to view the medical records of 1,882 patients. The types of information seen by the hacker included names, addresses, dates of birth, diagnoses, and treatment information, according to a UVa spokesperson. Financial information and Social Security numbers were not exposed as they were not accessible by the physician. Access to the protected health information of its patients stopped in late 2016, although UVa did not discover the breach for almost a year. UVa was notified of the security breach by the FBI on December 23,...

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Updated Colorado Data Breach Notification Advances: Reporting Period Cut to 30 Days
Feb22

Updated Colorado Data Breach Notification Advances: Reporting Period Cut to 30 Days

In January, a new data breach notification bill was introduced in Colorado that proposed updates to state laws to improve protections for residents affected by data breaches. The bill introduced a maximum time frame of 45 days for companies to notify individuals whose personal information was exposed or stolen as a result of a data breach. The definition of personal information was also updated to include a much wider range of information including data covered by HIPAA – medical information, health insurance information, and biometric data. Last week, Colorado’s House Committee on State, Veterans, and Military Affairs unanimously passed an updated version of the bill, which has now been passed to the Committee on Appropriations for consideration. The updated bill includes further new additions to the list of data elements classed as personal information – passport numbers, military, and student IDs. There has also been a shortening of the time frame organizations have to issue notifications. Instead of the 45 days proposed in the original bill, the time frame has been cut to just...

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AJMC Study Reveals Common Characteristics of Hospital Data Breaches
Feb20

AJMC Study Reveals Common Characteristics of Hospital Data Breaches

The American Journal of Managed Care has published a study of hospital data breaches in the United States. The aim of the study was to identify common characteristics of hospital data breaches, what the biggest problem areas are, the main causes of security incidents and the types of information most at risk. The study revealed hospitals are the most commonly breached type of healthcare provider, accounting for approximately 30% of all large healthcare security incidents reported to the Department of Health and Human Services’ Office for Civil Rights by providers between 2009 and 2016. Over that 7-year time period there were 215 breaches reported by 185 nonfederal acute care hospitals and 30 hospitals experienced multiple breaches of 500 or more healthcare records. One hospital experienced 4 separate breaches in the past 7 years, five hospitals had 3 breaches, and 24 hospitals experienced 2 breaches. In addition to hospitals experiencing the highest percentage of security breaches, those breaches also resulted in the theft/exposure of the highest number of health records. While...

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January 2018 Healthcare Data Breach Report
Feb14

January 2018 Healthcare Data Breach Report

Our January 2018 Healthcare Data Breach Report details the healthcare security incidents reported to the Department of Health and Human Services’ Office for Civil Rights in January 2018. There were 21 security breaches reported to OCR in January which is a considerable improvement on the 39 incidents reported in December 2017. Last month saw 428,643 healthcare records exposed. While there was a 46.15% drop in the number of healthcare data breaches reported in January month over month, 87,022 more records were exposed or stolen than in December. January was the third consecutive month where the number of breached records increased month over month. The mean breach size in January was 20,412 records – very similar to the mean breach size in December 2017 (20,487 records). However, the high mean value was due to a particularly large breach of 279,865 records reported by Oklahoma State University Center for Health Sciences. In January, the healthcare data breaches reported were far less severe than in December. In January the median breach size was 1,500 records. In December it was...

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$100,000 Settlement Shows HIPAA Obligations Don’t End When a Business Closes
Feb14

$100,000 Settlement Shows HIPAA Obligations Don’t End When a Business Closes

HIPAA covered entities and their business associates must abide by HIPAA Rules, yet when businesses close the HIPAA obligations do not end. The HHS’ Office for Civil Rights (OCR) has made this clear with a $100,000 penalty for FileFax Inc., for violations that occurred after the business had ceased trading. FileFax is a Northbrook, IL-based firm that offers medical record storage, maintenance, and delivery services for HIPAA covered entities. The firm ceased trading during the course of OCRs investigation into potential HIPAA violations. An investigation was launched following an anonymous tip – received on February 10, 2015 – about an individual that had taken documents containing protected health information to a recycling facility and sold the paperwork. That individual was a “dumpster diver”, not an employee of FileFax. OCR determined that the woman had taken files to the recycling facility on February 6 and 9 and sold the paperwork to the recycling firm for cash. The paperwork, which included patients’ medical records, was left unsecured at the recycling facility. In...

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Trump Administration Budget Proposal Slashes HHS, ONC, and OCR Funding
Feb13

Trump Administration Budget Proposal Slashes HHS, ONC, and OCR Funding

On Monday, the Trump Administration released its 2019 fiscal budget which includes major cuts to funding for the Department of Health and Human Services (HHS), Office of the National Coordinator for Health IT (ONC), and the Office for Civil Rights (OCR). The HHS has had a 21% cut to its budget from 2017 levels which means the Medicare and Medicaid programs will lose billions of dollars in funding. The ONC will lose a third of its funding and will be forced to cut its staff by 22. OCR will have 20% less to fund its extensive activities and will be forced to lose 5 members of staff. While HHS funding is being cut, additional funding has made available for the HHS to tackle the opioid crisis and improve services for individuals suffering from severe mental illness. $10 billion has been made available in discretionary funding for tackling the opioid crisis and to help individuals with serious mental illness. The HHS is required to expand existing activities to combat the opioid crisis and new initiatives should be launched to help individuals addicted to opioids have better access to...

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Is Box HIPAA Compliant?
Feb13

Is Box HIPAA Compliant?

Is Box HIPAA compliant? Can Box be used by healthcare organizations for the storage of documents containing protected health information or would doing so be a violation of HIPAA Rules? An assessment of the security controls of the Box cloud storage and content management service and its suitability for use in healthcare. What is Box? Box is a cloud storage and content management service that supports collaboration and file-sharing. Users can share files, invite others to view, edit or upload content. Box can be used for personal use; however, businesses need to sign up for either a business, enterprise, or elite account. Is Box Covered by the Conduit Exception Rule? The HIPAA conduit exception rule was introduced to allow HIPAA covered entities to use certain communications channels without having to obtain a business associate agreement. The conduit exception rule applies to telecoms companies and Internet service providers that act as conduits through which data flows. Cloud storage services are not covered under the HIPAA conduit exception rule, even if those entities claim...

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Healthcare Industry Scores Poorly on Employee Security Awareness
Feb13

Healthcare Industry Scores Poorly on Employee Security Awareness

A recent report published by security awareness training company MediaPro has revealed there is still a lack of preparedness to deal with common cyberattack scenarios and privacy and security threats are still not fully understood by healthcare professionals. For MediaPro’s 2017 State of Privacy and Security Awareness Report, the firm surveyed 1,009 US healthcare industry employees to assess their level of security awareness. Respondents were asked questions about common privacy and security threats and were asked to provide answers on several different threat scenarios to determine how they would respond to real world threats. Based on the responses, MediaPro assigned respondents to one of three categories. Heroes were individuals who scored highly and displayed a thorough understanding of privacy and security threats by answering 93.5%-100% of questions correctly. Novices showed a reasonable understanding of threats, answering between 77.4% and 90.3% of answers correctly. The lowest category of ‘Risks’ was assigned to individuals with poor security awareness, who scored 74.2% or...

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Timothy Noonan Becomes OCR’s Top HIPAA Enforcer, Replacing Deputy Director Iliana Peters
Feb12

Timothy Noonan Becomes OCR’s Top HIPAA Enforcer, Replacing Deputy Director Iliana Peters

After just 4 months in the position of deputy director for health information privacy at the Department of Health and Human Services’ Office for Civil Rights, Iliana Peters has departed for the private sector. Peters took over as deputy director following the departure of acting deputy director Deven McGraw in November, only to leave the post on February 2 to join the healthcare team at law firm Polsinelli. This is the third major change of staff at the Department of Health and Human Services in a little over four months. First, there was the departure of HHS Secretary Tom Price in late September, McGraw left in October to join health tech startup Citizen, and now Iliana Peters has similarly quit for the private sector. Peters has been working at the Office for Civil Rights for the past 12 years, including 5 years as a senior advisor. During her time at OCR Peters has worked closely with regional offices helping them enforce HIPAA Rules and has been instrumental in building up OCR’s HIPAA enforcement program. Peters has trained regional OCR staff on HIPAA enforcement and the...

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Aetna Seeks At Least $20 Million in Damages from Firm Responsible for HIV Status Data Breach
Feb08

Aetna Seeks At Least $20 Million in Damages from Firm Responsible for HIV Status Data Breach

Aetna has taken legal action against an administrative support company over a July 2017 data breach that saw details of HIV medications visible through the clear plastic windows of envelopes in a mailing. Letters inside some of the envelopes had slipped, making the words ““when filling prescriptions for HIV medications” clearly visible to anyone who saw the envelopes. The privacy breach was condemned by the Legal Action Center and AIDS Law Project of Pennsylvania, who along with Berger & Montague, P.C., filed a class action lawsuit against Aetna seeking damages for breach victims. In January, Aetna settled the lawsuit for $17.16 million. Last month, Aetna also settled violations of HIPAA and state laws for $1.15 million with the New York attorney general over the same breach. The class action was only one of seven filed against the health insurer, and further fines from state attorneys general are to be expected. Several other attorneys general have opened investigations into the breach and may also determine that state laws have been violated. The costs associated with the...

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Is HelloFax HIPAA Compliant?
Feb08

Is HelloFax HIPAA Compliant?

Is HelloFax HIPAA compliant? Can HelloFax be used by healthcare organizations to send files containing protected health information, or would doing so be considered a violation of HIPAA Rules? In this post we explore the protections in place and attempt to determine whether HelloFax can be considered a HIPAA compliant fax service. The HIPAA Conduit Exception and Fax Transmissions It is important to make a distinction between standard faxes and digital faxing services. Standard fax machines, those which are used to transmit a physical document from one fax machine to another, have long been used by healthcare organizations, and in many cases, to transmit documents containing protected health information. Transmissions are sent without first entering into a business associate agreement – or BAA – with telecommunications companies. That is because telecoms firms, such as AT&T, are covered by the HIPAA conduit exception rule. The HIPAA conduit exception is covered in more detail here, although in short, it details the types of communications services do not require a business...

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24,000 Decatur County General Hospital Patients Notified About Malware-Related Data Breach
Feb08

24,000 Decatur County General Hospital Patients Notified About Malware-Related Data Breach

Decatur County General Hospital in Tennessee has discovered malware has been installed on a server housing its electronic medical record system. The attacker potentially gained access to the medical records of up to 24,000 patients. An unauthorized software installation was discovered on November 27, 2017 by the hospital’s medical record system vendor, which is also responsible for maintaining the server on which the system is installed. An investigation revealed the software was a form of malware known as a cryptocurrency miner. Crytptocurrency mining is the use of computer processors to verify cryptocurrency transactions and add them to the public ledger containing details of all transactions since the currency was created. The process of verifying transactions requires computers to solve complex computational problems. Cryptocurrency mining can be performed by anyone with a computer, and in return for solving those computational problems, the miner is rewarded with a small payment for verifying the transaction. A single computer can be used to earn a few dollars a day performing...

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How Can Healthcare Organizations Protect Against Cyber Extortion
Feb06

How Can Healthcare Organizations Protect Against Cyber Extortion

In its January 2018 Cybersecurity Newsletter, the Department of Health and Human Services’ Office for Civil Rights drew attention to the rise in extortion attempts on healthcare organizations and offered advice on how healthcare organizations can protect against cyber extortion Ransomware Attacks Have Risen Significantly Ransomware attacks on healthcare organizations have increased significantly over the past two years. Healthcare providers are heavily reliant on access to electronic data and any attack that prevents access is likely to have a major impact on patients. The inevitable disruption to services – and the cost of that disruption – makes it more likely that a ransom will be paid. The relatively high probability of a ransom being paid, coupled with the ease of attacking healthcare organizations, has made the industry an attractive target for cybercriminals. It may be more cost effective and better for patients if a ransom to be paid instead of recovering data from backups. That was certainly the view of Hancock Health. A ransom payment of 4 Bitcoin was paid to...

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$3.5 Million Settlement to Resolve HIPAA Violations That Contributed to Five Data Breaches
Feb01

$3.5 Million Settlement to Resolve HIPAA Violations That Contributed to Five Data Breaches

The first HIPAA settlement of 2018 has been announced by the Department of Health and Human Services’ Office for Civil Rights (OCR). Fresenius Medical Care North America (FMCNA) has agreed to pay OCR $3.5 million to resolve multiple potential HIPAA violations that contributed to five separate data breaches in 2012. The breaches were experienced at five separate covered entities, each of which was owned by FMCNA. Those breached entities were: Bio-Medical Applications of Florida, Inc. d/b/a Fresenius Medical Care Duval Facility in Jacksonville, Florida (FMC Duval) Bio-Medical Applications of Alabama, Inc. d/b/a Fresenius Medical Care Magnolia Grove in Semmes, Alabama (FMC Magnolia Grove) Renal Dimensions, LLC d/b/a Fresenius Medical Care Ak-Chin in Maricopa, Arizona (FMC Ak-Chin) Fresenius Vascular Care Augusta, LLC (FVC Augusta) WSKC Dialysis Services, Inc. d/b/a Fresenius Medical Care Blue Island Dialysis (FMC Blue Island) Breaches Experienced by FMCNA HIPAA Covered Entities The five security breaches were experienced by the FMCNA covered entities over a period of four months...

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2017 Worst Year Ever for Cybersecurity Incidents According to Online Trust Alliance
Feb01

2017 Worst Year Ever for Cybersecurity Incidents According to Online Trust Alliance

According to the Online Trust Alliance´s “Cyber Incident & Breach Trends Report”, 2017 was the “worst year ever” for cybersecurity incidents. The organization estimates that, based on the number of reported breaches, there were nearly double the number of cybersecurity incidents than in 2016.   The Online Trust Alliance´s “Cyber Incident & Breach Trends Report” is more than a review of the previous year´s cybersecurity incidents. The organization investigates how the incidents occurred in order to identify trends, and what could have been done to prevent the incidents so that businesses can implement appropriate measures to defend against future incidents. The organization admits that the report´s headline figure of 159,700 cybersecurity incidents is a guesstimate based on the number of incidents reported during the third quarter of 2017. As the report states, many incidents are not reported, and the true figure could be much higher. However, using the same criteria, the organization guesstimated the number of cybersecurity incidents in 2016 at 82,000 – implying...

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Class Action Lawsuit against Allscripts Filed following Ransomware Attack
Jan31

Class Action Lawsuit against Allscripts Filed following Ransomware Attack

Last week, a ransomware attack against the EHR vendor Allscripts resulted in thousands of healthcare providers being unable to access patient data or use the e-prescription service. Already, a class action lawsuit against Allscripts has been filed by Florida-based Surfside Non-Surgical Orthopedics. Allscripts provides EHR and e-prescription services to 2,500 hospitals and 19,000 post-acute care organizations. Last week, a new variant of SamSam ransomware infected the company´s data centers in Raleigh and Charlotte, NC, leaving several application offline for up to 1,500 clients. Microsoft and Cisco incident response teams helped the company restore its e-prescribing service by Saturday; but, for many clients, the Allscripts PRO EHR system is still unavailable or experiencing outages. An Allscripts spokesperson has been unable to confirm when a full restore will be completed. The Class Action Lawsuit against AllScripts The class action lawsuit against Allscripts was filed in the United States District Court for the Northern District of Illinois where the company is based. It alleges...

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Lightning Likely to Strike Twice for Victims of Ransomware Attacks
Jan31

Lightning Likely to Strike Twice for Victims of Ransomware Attacks

A new report commissioned by online security company Sophos has revealed that victims of ransomware attacks are likely to experience further attacks within a year. The report confirms the healthcare industry is at the greatest risk of suffering multiple ransomware attacks. In order to compile the report – “The State of Endpoint Security Today” – the research company Vanson Bourne surveyed 2,700 IT managers in organizations of 100 to 5,000 users across the US, Canada, Mexico, France, Germany, UK, Australia, Japan, India, and South Africa. The results of the survey make unpleasant reading: 54% of the surveyed organizations were victims of one or more ransomware attacks in the last year. Of the organizations that were victims of ransomware attacks, there was an average of two attacks per organization. The median financial impact per affected organization amounted to $133,000 (including ransom paid, downtime, rectification costs, etc.). The financial impact for the top 3% of organizations suffering a successful ransomware attack was between $6.6 million and $13.3 million....

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Eligible Hospitals Must Now Use QNet for Meaningful Use Attestation
Jan30

Eligible Hospitals Must Now Use QNet for Meaningful Use Attestation

The Centers for Medicare & Medicaid Services (CMS) has recently issued a reminder that eligible hospitals and Critical Access Hospitals (CAHs) participating in Electronic Health Record Incentive Schemes must use the QualityNet Secure Portal (QNet) to submit Meaningful Use attestations in 2018. Back in October, CMS announced it was transitioning Meaningful Use attestations to QNet. Previously two separate systems had been used for attestations and reporting clinical quality measures; but, in order to simplify reporting requirements and streamline data submissions, the QNet portal would be used for both from January 2nd 2018. From October, eligible hospitals and CAHs new to QNet had the opportunity to enroll on the system and get used to how it worked, while existing QNet users were advised to add an MU role to their accounts. From the beginning of this month, the QNet system opened for attestations relating to the 2017 calendar year. The attestation period closes on February 28th. Different Processes for Medicare and Medicaid Hospitals Although attempting to simplify the...

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Aetna Agrees to Pay $1.15 Million Settlement to Resolve NY Attorney General Data Breach Case
Jan25

Aetna Agrees to Pay $1.15 Million Settlement to Resolve NY Attorney General Data Breach Case

Last July, Aetna sent a mailing to members in which details of HIV medications were clearly visible through the plastic windows of envelopes, inadvertently disclosing highly sensitive HIV information to individuals’ house mates, friends, families, and loved ones. Two months later, a similar privacy breach occurred. This time the mailing related to a research study regarding atrial fibrillation (AFib) in which the term IMACT-AFIB was visible through the window of the envelope. Anyone who saw the envelope could have deduced the intended recipient had an AFib diagnosis. The July breach triggered a class action lawsuit which was recently settled by Aetna for $17.2 million. Aetna must now also cover a $1.15 million settlement with the New York Attorney General to resolve violations of federal and state laws. Attorney General Schneiderman launched an investigation following the breach of HIV information in July, which violated the privacy of 2,460 Aetna members in New York. The September privacy breach was discovered during the course of that investigation. 163 New York Aetna members had...

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Kansas Attorney General Fines Healthcare Provider for Failing to Protect Patient Records
Jan25

Kansas Attorney General Fines Healthcare Provider for Failing to Protect Patient Records

The Topeka, KS-based healthcare company Pearlie Mae’s Compassion and Care LLC and its owners have been fined by the Kansas Attorney General for failing to protect patient and employee records. The owners have agreed to pay a civil monetary penalty of $8,750. The HITECH Act gave attorneys general the authority to enforce HIPAA rules and take action against HIPAA-covered entities and business associates that are discovered not to be in compliance with HIPAA regulations. Only a handful of state attorneys general have exercised those rights, with many opting to pursue privacy violations under state laws. In this case, Attorney General Derek Schmidt issued the civil monetary penalty for violations of the Wayne Owen Act, which is part of the Kansas Consumer Protection Act. Special agents of the Kansas attorney general’s office were assisting the Topeka Police Department execute a search warrant in June 2017 at the home of Ann Marie Kaiser, one of the owners of Pearlie Mae’s Compassion and Care. Kaiser’s home was used as an office location for the company. While at the property, the...

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Analysis of Healthcare Data Breaches in 2017
Jan24

Analysis of Healthcare Data Breaches in 2017

A summary and analysis of healthcare data breaches in 2017 has been published by Protenus. Data for the report is obtained from Databreaches.net, which tracks healthcare data breaches reported to OCR, the media, and other sources. The 2017 breach report gives an indication of the state of healthcare cybersecurity.  So how has 2017 been? There Were at Least 477 Healthcare Data Breaches in 2017 In some respects, 2017 was a good year. The super-massive data breaches of 2015 were not repeated, and even the large-scale breaches of 2016 were avoided. However, healthcare data breaches in 2017 occurred at rate of more than one per day. There were at least 477 healthcare data breaches in 2017 according to the report. While all those breaches have been reported via one source or another, details of the nature of all the breaches is not known. It is also unclear at this stage exactly how many healthcare records were exposed. Numbers have only been obtained for 407 of the breaches. There was a slight increase (6%) in reported breaches in 2017, up from 450 incidents in 2016. However, there was...

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Analysis of Q4 2017 Healthcare Security Breaches
Jan22

Analysis of Q4 2017 Healthcare Security Breaches

Q4, 2017 saw a 13% reduction in healthcare security breaches reported to the Department of Health and Human Services’ Office for Civil Rights. There were 99 data breaches reported in Q3, 2017. In Q4, there were 86 security breaches reported. There were 27 healthcare security breaches reported in September, following by a major decline in breaches in November, when 21 incidents were reported. However, December saw a significant uptick in incidents with 38 reported breaches. Accompanied by the quarterly decline in security incidents was a marked decrease in the severity of breaches. In Q3, there were 8 data breaches reported that impacted more than 50,000 individuals. In Q4, no breaches on that scale were reported. The largest incident in Q4 impacted 47,000 individuals.  Largest Q4, 2017 Healthcare Security Breaches   Covered Entity Entity Type Number of Records Breached Cause of Breach Oklahoma Department of Human Services Health Plan 47000 Hacking/IT Incident Henry Ford Health System Healthcare Provider 43563 Theft Coplin Health Systems Healthcare Provider 43000 Theft Pulmonary...

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Allscripts Ransomware Attack Impacts Cloud EHR and EPCS Services
Jan22

Allscripts Ransomware Attack Impacts Cloud EHR and EPCS Services

An Allscripts ransomware attack occurred on Thursday January 18, resulting in several of the firm’s applications being taken offline, including its cloud EHR and electronic prescriptions platform. The attack came just a few days after two Indiana hospitals experienced SamSam ransomware attacks. The Allscripts ransomware attack is also believed to have involved a variant of SamSam ransmware – a ransomware family extensively used in attacks on healthcare providers. Allscripts is a popular electronic health record (EHR) system and Electronic Prescriptions for Controlled Substances (EPCS) provider, with its platform used by many U.S healthcare organizations, including 2,500 hospitals and 19,000 post-acute care organizations. More than 180,000 physicians, 100,000 electronic prescribing physicians, and 40,000 in-home clinicians use Allscripts. The Allscripts ransomware attack commenced in the early hours of Thursday morning. Rapid action was taken to remove the ransomware and restore data, with the incident response teams at Microsoft and Cisco called in to assist. An investigation...

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