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Small North Carolina Healthcare Provider Fined $25,000 for HIPAA Security Rule Noncompliance

The HHS’ Office for Civil Rights (OCR) has announced a $25,000 settlement has been reached with Metropolitan Community Health Services to resolve violations of the HIPAA Security Rule.

Washington, NC-based Metropolitan Community Health Services is a Federally Qualified Health Center that provides integrated medical, dental, behavioral health & pharmacy services for adults and children. Operating as Agape Health Services, Metro provides discounted medical services to the underserved population in rural North Carolina. Metropolitan Community Health Services has around 43 employees and serves 3,100 patients each year.

On June 9, 2011, Metropolitan Community Health Services filed a report with OCR over a breach of the protected health information of 1,263 patients. OCR conducted a compliance review to establish whether the breach was the direct result of noncompliance with the HIPAA Rules. The OCR investigation uncovered longstanding, systemic noncompliance with the HIPAA Security Rule.

Prior to the breach, Metropolitan Community Health Service had failed to implement HIPAA Security Rule policies and procedures, in violation of 45 C.F.R. §164.316, and an accurate and thorough assessment of the potential risks to the confidentiality, integrity, and availability of ePHI had not been conducted, in violation of 45 C.F.R. § 164.308(a)(l )(ii)(A). Despite being in business since 1999, no HIPAA security awareness and training had been provided to the workforce prior to June 30, 2016, in violation of 45 C.F.R. §164.308(a)(5).

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When deciding on an appropriate settlement, OCR took the size of the organization and several other factors into account.  In addition to paying a financial penalty of $25,000 to resolve the HIPAA violations, Metropolitan Community Health Services has agreed to adopt a robust corrective action plan and will ensure policies and procedures are implemented to the standards required by HIPAA.  Metropolitan Community Health Services will be monitored for compliance with the corrective action plan for a period of two years.

This is the second HIPAA violation penalty to be imposed on a HIPAA covered entity in 2020 to resolve violations of HIPAA Rules, the first being a $100,000 financial penalty in March 2020 for Steven A. Porter, M.D for risk analysis and risk management failures.

The fine confirms that healthcare providers, large and small, are required to comply with HIPAA Rules. “Health care providers owe it to their patients to comply with the HIPAA Rules.  When informed of potential HIPAA violations, providers owe it to their patients to quickly address problem areas to safeguard individuals’ health information,” said Roger Severino, OCR Director.

Author: Steve Alder is the editor-in-chief of HIPAA Journal. Steve is responsible for editorial policy regarding the topics covered on HIPAA Journal. He is a specialist on healthcare industry legal and regulatory affairs, and has several 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.