Noncompliance of HIPAA Security Rules Has Huge Consequences
The noncompliance of HIPAA security rules has had huge consequences for an IT and health information management company.
CHSPSC LLC, (“CHSPSC”) has agreed to pay over $2 million to the Office for Civil Rights (OCR) at the U.S. Department of Health and Human Services (HHS), for the breach of Protected Health Information (PHI). The Business Associate was notified by the Federal Bureau of Investigation (FBI) that it had traced a cyber-hacking group’s advanced persistent threat into CHSPSC’s information system.
After OCR ‘s investigation, it was found that CHSPSC had “longstanding, systemic noncompliance with the HIPAA Security Rule including failure to conduct a risk analysis, and failures to implement information system activity review, security incident procedures, and access controls.” The large health system provided various Business Associate services, including IT and health information management, to hospitals and physician clinics. These violations could have easily been avoided! OCR Director Roger Severino said, “The healthcare industry is a known target for hackers and cyber-thieves. The failure to implement the security protections required by the HIPAA Rules, especially after being notified by the FBI of a potential breach, is inexcusable.”
In addition to the monetary penalty, the Business Associate will be required to complete a “robust” Corrective Action Plan (CAP) with monitoring activity for at least the next two years. CHSPSC will also be required to do the following:
• Implement technical policies and procedures to allow access only to those persons or software programs that have been granted access rights to information systems maintained
• Implement procedures to regularly review records of information system activity, such as audit logs, access reports, and security incident tracking reports
• Conduct accurate and thorough assessments of the potential risks and vulnerabilities to the confidentiality, integrity, and availability of ePHI
All this shows that ANYONE can face HUGE penalties, and they would most likely bankrupt a small billing company or an independent physician practice.
So, based on this specific example, it is VERY important to understand that every complaint or potential breach must be investigated by HHS/OCR. If you, a billing company, or other vendor, suspect a breach, you must inform the covered entity (your client) and have a breach risk assessment completed to determine key factors and take action.
Keep in mind, a Business Associate is a ‘person’ or ‘entity’. This means that ALL billing companies—large or small—need to comply with the Federal HIPAA security rules and regulations. So, if your company has not completed an accurate and thorough security risk assessment, there is a possibility that you could be penalized under ‘willful neglect’. (This category alone gas a fine of $50,000 per violation!)
So then, what can be done to ensure this doesn’t happen to my billing company or my organization? Well, one of EZClaim’s partners, Live Compliance, can make determining your compliance requirements extremely simple:
• Completely online, Life Compliance’s role-based courses make training easy for remote or in-office employees
• Contact-free, accurate Security Risk Assessments are conducted remotely. All devices are thoroughly analyzed regardless of location.
• Policies and procedures are curated to fit your organization, ensuring employees are updated on all workstation use and security safeguards in or out of the office. Update is in real time.
• Electronic, prepared document sending and signing to employees and business associates
So, don’t risk your company’s future, especially when Life Compliance is offering a FREE Organization Assessment to help determine your company’s status. Either call Life Compliance at 980.999.1585, visit LiveCompliance.com to schedule an assessment, or e-mail Jim Johnson.
[ Article contributed by Jim Johnson of Live Compliance ]
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