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Data Breaches Announced by Watsonville Community Hospital & Palomar Health Medical Group

Data breaches have recently been announced by Watsonville Community Hospital and Palomar Health Medical Group in California, and the Phia Group in Massachusetts.

Watsonville Community Hospital

Watsonville Community Hospital in California is notifying individuals affected by a November 2024 security incident. Suspicious activity was identified within its computer systems on November 29, 2024, and the investigation confirmed that there had been unauthorized access to its network from November 25, 2024, to November 30, 2024, when the hackers were ejected from its network. The investigation confirmed that files containing patient information were either accessed or downloaded during those five days.

The file review confirmed that the data compromised in the incident included names, addresses, and driver’s license numbers or government ID numbers, with the exposed data varying from individual to individual. Notification letters started to be sent to the affected individuals on December 30, 2024; however, the file review was not completed until September 22, 2025. The final batch of notification letters started to be mailed on October 15, 2025.

The affected individuals have been offered complimentary credit monitoring and identity theft protection services for 24 months. Watsonville Community Hospital has implemented additional cybersecurity safeguards and has provided further training to its workforce. The incident is not currently shown on the HHS’ Office for Civil Rights website, so it is currently unclear how many individuals have been affected.

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Palomar Health Medical Group

Arch Health Partners, Inc., doing business as Palomar Health Medical Group, in Poway, California, has started notifying patients about a data security incident first identified on May 5, 2024. Palomar Health Medical Group launched an investigation into suspicious network activity and confirmed that an unauthorized threat actor gained access to certain files on its network on April 23, 2024, and maintained access until the data breach was detected on May 5, 2024. During that time, files may have been copied that contained patient information.

The data compromised in the incident included names, addresses, dates of birth, Social Security numbers, driver’s license numbers, state identification numbers, military identification numbers, passport numbers, U.S. alien registration numbers, financial account information, payment card information, health savings account information, medical histories, diagnostic information, treatment information, biometric data, medical record numbers, Medicare/ Medicaid identification numbers, patient account numbers, health insurance information, email addresses and passwords, and usernames and passwords.

Palomar Health Medical Group had previously announced the cyberattack and data breach; however, it took until September 4, 2025, to finish the review of the affected files to allow notification letters to be sent. Complimentary credit monitoring and identity theft protection services have been made available for 12 or 24 months, and steps have been taken to improve security to prevent similar incidents in the future. The incident is not currently shown on the HHS’ Office for Civil Rights website, so it is currently unclear how many individuals have been affected.

The Phia Group

The Phia Group, a Canton, Massachusetts-based provider of outsourced cost containment and payment integrity solutions to healthcare payers, has recently notified the Massachusetts Attorney General about a recent data security incident. The notice is a copy of the data breach notifications sent to the affected individuals, and it provides no information about the nature of the data breach, such as when it occurred, when it was detected, or the cause of the breach. The data potentially compromised in the incident includes names, Social Security numbers, and medical record numbers. The affected individuals have been offered complimentary credit monitoring and identity theft protection services. The incident is not currently shown on the HHS’ Office for Civil Rights website, so it is currently unclear how many individuals have been affected.

This post will be updated when further information becomes available.

Author: Steve Alder is the editor-in-chief of The HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered in The HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has 10 years of experience writing about HIPAA and other related legal topics. Steve has developed a deep understanding of regulatory issues surrounding the use of information technology in the healthcare industry and has written hundreds of articles on HIPAA-related topics. Steve shapes the editorial policy of The HIPAA Journal, ensuring its comprehensive coverage of critical topics. Steve Alder is considered an authority in the healthcare industry on HIPAA. The HIPAA Journal has evolved into the leading independent authority on HIPAA under Steve’s editorial leadership. Steve manages a team of writers and is responsible for the factual and legal accuracy of all content published on The HIPAA Journal. Steve holds a Bachelor’s of Science degree from the University of Liverpool. You can connect with Steve via LinkedIn or email via stevealder(at)hipaajournal.com

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