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Health-Care Provider Pays $31K for Lack of Privacy Contract with Vendor

Publisher: Bloomberg BNA's Health Care Daily Report
April 25, 2017

Eric Fader was quoted in an article, "Health-Care Provider Pays $31K for Lack of Privacy Contract with Vendor," published in Bloomberg BNA's Health Care Daily Report. The article reports that the Illinois-based Center for Children's Digestive Health may have violated HIPAA when it failed to sign a business associate agreement with a vendor before transferring nearly 11,000 paper medical records to the company for storage. Under a recent resolution agreement, CCDH agreed to pay the Department of Health and Human Services' Office for Civil Rights $31,000 and enter into a two-year corrective action plan. Fader told Bloomberg BNA that the $31,000 settlement appears small considering the severity of the storage company's underlying offense, disposing of unneeded patient records in an unlocked outdoor dumpster rather than shredding them. "This is a reminder from the OCR that a covered entity bears the ultimate responsibility when its business associate fails to comply with its HIPAA obligations," Fader told Bloomberg BNA. Signing a business associate agreement, ideally after both parties have actually read it, will help to educate any entity that still hasn't figured out its responsibilities under HIPAA, Fader added.


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