HIPAA Breach News

PHI of 45,262 Desert Pain Institute Patients Potentially Compromised in Cyberattack

Baywood Medical Associates, doing business as Desert Pain Institute (DPI) in Mesa, AZ, has discovered unauthorized individuals gained access to parts of its computer network that contained the protected health information of patients.

The security breach was detected and stopped by DPI on September 13, 2021, and a third-party cybersecurity company was engaged to assist with the investigation and determine the nature and scope of the cyberattack. On October 15, 2021, the forensic investigators confirmed evidence was found indicating the attackers had accessed parts of its network where patients’ protected health information was stored.

A review of the files on systems accessible to the hackers releveled the following information may have been viewed or exfiltrated: Full names, addresses, dates of birth, Social Security numbers, tax identification numbers, driver’s license/state-issued identification card numbers, military identification numbers, financial account numbers, medical information, and health insurance policy number. The types of data potentially compromised varied from patient to patient.

From September 13 when the breach was detected until the date of issuing notifications, no evidence has been found to indicate any actual or attempted misuse of patient data; however, affected individuals have been advised to be vigilant against identity theft and fraud and to sign up for the complimentary credit monitoring services that are being provided.

DPI said security measures for its systems and servers have been enhanced, which includes new end-point monitoring tools to identify unauthorized activity.

The incident has not yet appeared on the Department of Health and Human Services’ Office for Civil Rights breach portal, but the breach notification provided to the Maine attorney general indicates the protected health information of 45,262 individuals was potentially compromised.

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Cyberattacks Reported by Family of Woodstock and Viverant

Family of Woodstock (FOW), a New York provider of crisis intervention, information, prevention, and support services, has suffered a cyberattack in which the protected health information of 8,214 individuals was potentially compromised.

The cyberattack was detected on August 3, 2021, and rapid steps were taken to eject the attackers from its network and restore its systems and operations. Third-party forensic investigators were engaged to determine the nature and scope of the breach, with the initial phase of the investigation concluding on September 11, 2021.

FOW said the investigation confirmed the attackers had access to parts of its network that contained protected health information such as first and last names, addresses, telephone numbers, email addresses, dates of birth, Social Security numbers, driver’s license numbers, medical record numbers, medical history, diagnosis, treatment, condition, and health insurance information. At the time of issuing notifications, no evidence had been found indicating any attempted or actual misuse of information.

FOW has implemented additional cybersecurity safeguards, is enhancing its policies, procedures, and protocols, and is providing additional cybersecurity training to the workforce.

Physical Therapy Center Notifies 6,500 Patients of PHI Exposure

Viverant PT, LLC, a Minneapolis, MN-based physical therapy center, is notifying 6,500 current and former patients about a March 2021 cyberattack that exposed their protected health information.

The breach was detected on March 9, 2021, when suspicious emails were sent from an employee’s email account. The email account was immediately secured and steps were taken to address and contain the breach. A comprehensive review was conducted of its email environment, which confirmed only one email account had been breached but that it contained a wide range of sensitive data.

No evidence was found to indicate any attempted or actual misuse of patient data, but the possibility of data theft could not be ruled out. Viverant said the types of data in the account varied from individual to individual and may have included the following data elements: name, address, date of birth, Social Security number, driver’s license number, medical record number, date of service, diagnostic/treatment information, credit/debit card number with password or security code, health insurance information, financial account number with or without password or routing number, medications, username with security questions and answers, vehicle identification number (VIN), and digital signature.

Viverant said a leading security firm was engaged to assist with the investigation and response to the attack, and additional measures have been implemented to improve the security of its systems and practices. They include changing passwords, implementing more robust authentication, conducting further training of the workforce, and retaining national privacy and security experts to assist with ongoing security. Viverant said complimentary credit monitoring services have been offered to affected individuals.

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More than 650K Patients of Community Medical Centers Notified About Hacking Incident

The protected health information of more than 650,000 patients of Community Medical Centers (CMC) in California has potentially been obtained by hackers.

CMC is a not-for-profit network of community health centers that serve patients in the San Joaquin, Solano, and Yolo counties in Northern California. CMC identified suspicious activity in its computer systems on October 10, 2021, and shut down its systems to prevent further unauthorized access. An investigation was launched to determine the nature and scope of the breach, with assistance provided by third-party cybersecurity experts.

The forensic investigation confirmed that unauthorized individuals had gained access to parts of its network where protected health information was stored, including first and last names, mailing addresses, dates of birth, Social Security numbers, demographic information, and medical information.

Due to the sensitive nature of the exposed data, CMC is offering complimentary identity theft protection, identity theft resolution, and credit monitoring services to affected individuals. CMC said it has confirmed its systems are now secure, policies and procedures have been reviewed and updated to improve security, and data management policies have been reviewed and updated.

Law enforcement has been notified about the breach, as have appropriate state attorneys general and the Department of Health and Human Services.

The breach report submitted to the Maine attorney general indicates the protected health information of 656,047 individuals was potentially compromised.

Professional Healthcare Management Discloses Ransomware Attack

Memphis, TN-based Professional Healthcare Management (PMH) has started notifying certain patients that some of their protected health information has potentially been compromised in a September 2021 ransomware attack.

The attack was detected on September 14 and action was quickly taken to secure its servers and workstations. Assisted by third-party cybersecurity and incident response experts, PMH was able to quickly secure and restore its systems and operations. An investigation was conducted to determine the nature and scope of the breach which determined the personal and protected health information of patients may have been accessed and obtained by the attackers.

The breach investigation is ongoing but, at this stage, no evidence of data theft or misuse of patient data has been identified; however, notification letters are now being sent to affected individuals and the incident has been reported to the HHS’ Office for Civil Rights.

PMH said the following types of patient information were potentially compromised: first and last names, Social Security numbers, health insurance information (Medicaid number, Medicare number, and insurance identification number), prescription name(s), and diagnosis code(s).

Additional safeguards are being implemented to improve IT security, cybersecurity policies, protocols, and procedures are being updated, and additional cybersecurity training has been provided to the workforce.

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Security Breaches Reported by Lavaca Medical Center and Throckmorten County Memorial Hospital

Lavaca Medical Center, a critical access hospital in Hallettsville, TX, has started notifying 48,705 patients about a security breach in which their protected health information was exposed.

Lavaca Medical Center said unusual activity was detected in its computer network on August 22, 2021, indicating a potential cyberattack. Steps were immediately taken to secure its network and a third-party computer forensics firm was engaged to assist with the investigation. The forensic investigators confirmed unauthorized individuals had access to the network between August 17 and August 21.

While no evidence of data theft was uncovered, the possibility that patient data were viewed or exfiltrated could not be ruled out. Affected systems contained names, dates of birth, Social Security numbers, patient account numbers, and medical record numbers. The electronic medical record system was not accessed.

Lavaca Medical Center said it has no reason to believe any patient data were removed from its systems or misused; however, as required by the HIPAA Breach Notification Rule, notification letters have been sent to affected individuals. Out of an abundance of caution, affected individuals have been offered complimentary credit monitoring and identity theft protection services.

Network monitoring tools have now been enhanced and its systems will be regularly audited for unauthorized activity.

Throckmorten County Memorial Hospital Discovers Malware Infection

Throckmorten County Memorial Hospital in Texas has discovered unauthorized individuals gained access to parts of its computer network that contained the personal information of 3,136 employees and patients.

An intrusion was detected on September 7, 2021, which involved unauthorized access to systems and the installation of malware. A forensic investigation determined its network was breached on August 25, 2021, and access remained possible until September 7.

A review of the affected systems confirmed they contained patient information such as first and last name, address, date of birth, gender, date(s) of service, diagnoses, current procedural terminology code, medical condition, medication, and details of hospital visits. Employee data potentially compromised included name, wage history, Social Security number, payroll information, and filing information.

Throckmorten County Memorial Hospital said affected individuals have been offered a complimentary membership to a credit monitoring service and will be protected by an identity theft and fraud insurance policy. Notifications about the security breach were delayed to allow time for the malware to be removed and security to be improved, as providing notifications earlier would have left its network vulnerable to other threat actors.

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Security Breaches Reported by Lavaca Medical Center and Throckmorten County Memorial Hospital

Lavaca Medical Center, a critical access hospital in Hallettsville, TX, has started notifying 48,705 patients about a security breach in which their protected health information was exposed.

Lavaca Medical Center said unusual activity was detected in its computer network on August 22, 2021, indicating a potential cyberattack. Steps were immediately taken to secure its network and a third-party computer forensics firm was engaged to assist with the investigation. The forensic investigators confirmed unauthorized individuals had access to the network between August 17 and August 21.

While no evidence of data theft was uncovered, the possibility that patient data were viewed or exfiltrated could not be ruled out. Affected systems contained names, dates of birth, Social Security numbers, patient account numbers, and medical record numbers. The electronic medical record system was not accessed.

Lavaca Medical Center said it has no reason to believe any patient data were removed from its systems or misused; however, as required by the HIPAA Breach Notification Rule, notification letters have been sent to affected individuals. Out of an abundance of caution, affected individuals have been offered complimentary credit monitoring and identity theft protection services.

Network monitoring tools have now been enhanced and its systems will be regularly audited for unauthorized activity.

Throckmorten County Memorial Hospital Discovers Malware Infection

Throckmorten County Memorial Hospital in Texas has discovered unauthorized individuals gained access to parts of its computer network that contained the personal information of 3,136 employees and patients.

An intrusion was detected on September 7, 2021, which involved unauthorized access to systems and the installation of malware. A forensic investigation determined its network was breached on August 25, 2021, and access remained possible until September 7.

A review of the affected systems confirmed they contained patient information such as first and last name, address, date of birth, gender, date(s) of service, diagnoses, current procedural terminology code, medical condition, medication, and details of hospital visits. Employee data potentially compromised included name, wage history, Social Security number, payroll information, and filing information.

Throckmorten County Memorial Hospital said affected individuals have been offered a complimentary membership to a credit monitoring service and will be protected by an identity theft and fraud insurance policy. Notifications about the security breach were delayed to allow time for the malware to be removed and security to be improved, as providing notifications earlier would have left its network vulnerable to other threat actors.

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PHI of Employees Potentially Compromised in Tech Etch Ransomware Attack

Tech Etch, a Plymouth, MA-based manufacturer of precision-engineered thin metal components, flexible printed circuits, and EMI/RFI shielding, has announced it was the victim of a ransomware attack in which the personal and protected health information of current and former employees was potentially compromised.

Companies such as Tech Etch would not normally be required to comply with HIPAA; however, the company provides a health plan for its employees and, as such, is classed as a HIPAA-covered entity.

Tech Etch discovered the ransomware attack on August 25, 2021, with the investigation determining the attackers gained access to its network on August 20. Tech Etch engaged an external forensic cybersecurity team to assist with the breach investigation, help secure its network, and prevent any further unauthorized access. Tech Etch had viable backups that were unaffected and was able to restore all encrypted data without paying the ransom.

Multiple safeguards had been implemented to secure employees’ personal and protected health information, but despite those protections, some employee data may have been stolen. Tech Etch said no direct evidence of data staging or data exfiltration was identified and the investigation indicated the attackers had not accessed the HR servers where employee data were stored. The attackers did try to access data backups containing employee data, but the backups were encrypted by Tech Etch and could not be viewed. Some employee information, such as names, addresses, Social Security numbers, dates of birth, and personal health information, was present in its email environment and could have been accessed or exfiltrated.

Tech Etch has not found any evidence that any employee data has been acquired or misused and it does not appear that any employee data have been posted publicly.

Affected employees have been advised to monitor their credit reports, accounts, and explanation of benefits statements for signs of fraudulent activity and to immediately report any suspicious transactions if they are discovered.  Tech Etch has already taken steps to enhance its security systems to prevent further security incidents and will continue to review those protocols to ensure they remain effective.

The ransomware attack has been reported to the Department of Health and Human Services’ Office for Civil Rights and the Massachusetts Attorney General. This post will be updated when it is known how many individuals have been affected.

UNC Hospitals Discovers Insider Breach and Data Theft

The protected health information of 719 patients of UNC Hospitals has been stolen by a former employee, who used the information for financial gain.

The Chapel Hill, NC-based healthcare provider discovered the unauthorized access on September 10, 2021. The employee in question was responsible for handling patients’ payments for services at several UNC Hospitals clinics and was provided with access to sensitive patient data to complete work duties.

The employee stole patients’ demographic information, financial information, Social Security numbers, copies of insurance cards, and patients’ driver’s licenses and used that information to fraudulently obtain goods and services.

Patients whose protected health information was accessed or misused by the former employee have been notified by mail and have been offered complimentary credit monitoring services for 12 months. The UNC Hospitals Police Department has launched a criminal investigation into the incident.

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PHI of 24,891 Specialty Surgery Center of Central New York Patients Potentially Compromised

Syracuse ASC, dba Specialty Surgery Center of Central New York, has started notifying 24,891 patients that some of their protected health information (PHI) was potentially accessed by unauthorized individuals who gained access to its computer systems.

The breach was identified by Syracuse ASC around March 31, 2021, and steps were immediately taken to secure its systems and prevent further unauthorized access. A third-party cybersecurity firm was engaged to assist with the forensic investigation, which concluded on April 30, 2021, and determined the hackers accessed parts of its systems that contained PHI.

A second investigation was conducted to determine which individuals’ PHI had been exposed. A list of individuals potentially affected by the incident was obtained on August 16, 2021, with the delay in issuing notifications due to a “substantial data validation process to verify the accuracy of the data.”

The file review confirmed names may have been compromised along with limited health information, but no evidence was found to indicate any actual or attempted misuse of data on the compromised systems.

Several steps have already been taken to improve IT security to prevent further data breaches, including updating its antivirus software and switching provider, locking down external websites, adding warning banners to emails from external sources, reconfiguring routers and closing unused ports and services, segregating the guest Wi-Fi network, updating switches and firewalls, upgrading operating systems on workstations, and providing further security awareness training to the workforce.

Computer Containing PHI Stolen from Advocate Lutheran General Hospital

A laptop computer containing the protected health information of patients of Advocate Lutheran General Hospital in Park Ridge, IL has been stolen.

The computer was stolen from the hospital on between 3:30 p.m. on September 22 and 06:30 a.m. on September 24, 2021. Upon discovery of the theft, technologies and processes were implemented to protect patient data and the laptop computer was remotely disabled; however, it is possible that in the short window of opportunity, data stored on the device could have been viewed. The hospital said it has found no evidence to indicate patient data was compromised.

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UPMC Hacker Who Stole PII of 65,000 Employees Gets Maximum 7-Year Sentence

The hacker who gained access to the databases of University of Pittsburgh Medical Center (UPMC) and stole the personally identifiable information (PII) and W-2 information of approximately 65,000 UPMC employees has been handed the maximum sentence for the offenses and will serve 7 years in jail.

Sean Johnson, of Detroit, Michigan – aka TheDearthStar and Dearthy Star – hacked into the databases of UPMC in 2013 and 2014 and stole highly sensitive information which was then sold on dark web hacking forums and was used by identity thieves to file fraudulent tax returns in the names of UPMC employees. The Department of Justice (DOJ) also alleged Johnson conducted further cyberattacks between 2014 and 2017 and stole the PII of an additional 90,000 individuals. Those sets of data were also sold to identity thieves on dark web forums.

In total, fraudulent tax returns totaling $2.2 million were filed and around $1.7 million was dispersed by the IRS. The funds received were converted to Amazon gift cards, which were used to purchase high-value goods that were shipped to Venezuela.

Three of Johnson’s co-conspirators were arrested and charged for their roles in the UPMC cyberattack. In August 2016, Cuban national Yolandy Perex Llanes was extradited to the United States and pleaded guilty in April 2017 to money laundering and aggravated identity theft. He was sentenced in 2017 to 6 months of time served.

In April 2017, Justin A. Tollefson of Spanaway, Washington, a staff sergeant at Joint Base Lewis-McChord in Tacoma, Washington, pleaded guilty to four counts of using the stolen identities of UPMC employees to file fraudulent tax returns. He had purchased the PII on a dark web forum and used the data to file fraudulent tax returns in the names of four UPMC employees. $56,333 was paid by the IRS in income tax refunds, but Tollefson was arrested before he received any funds. The judge was lenient as Tollefson had not profited from the fraud and sentenced him in 2017 to 3 years of probation.

Maritza Maxima Soler Nodarse, a Venezuelan national, pleaded guilty to conspiracy to defraud the United States in July 2017 for her role in the identity theft and tax fraud crimes. She received a 16-month time-served sentence and was deported to Venezuela.

Johnson received the maximum sentence despite pleading guilty to the hacking charges due to the severity of the offenses and the impact they had on the lives of his victims. Chief United States District Judge Mark R, Hornak said Johnson’s behavior was like a “bulldozer” through people’s lives and his indiscriminate hacking activities showed no regard for his victims. “The actions of criminals like Justin Johnson can have long-lasting and devastating effects on the lives of innocent people,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminal Investigation.

Johnson was sentenced to serve 60 months in jail for the conspiracy to defraud the United States charge and a mandatory 24-month sentence for aggravated identity theft, with the sentences to run consecutively.

“Justin Johnson stole the names, Social Security numbers, addresses, and salary information of tens of thousands of UPMC employees, then sold that personal information on the dark web so that other criminals could further exploit his victims,” said Acting U.S. Attorney Kaufman. “Today’s sentence sends a deterrent message that hacking has serious consequences.”

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September 2021 Healthcare Data Breach Report

There was a 23.7% month-over-month increase in reported healthcare data breaches in September, which saw 47 data breaches of 500 or more records reported to the Department of Health and Human Services’ Office for Civil Rights. While that is more than 1.5 breaches a day, it is under the average of 55.5 breaches per month over the past 12 months.

Healthcare data breaches August 2020 to September 2021

While data breaches increased, there was a major decrease in the number of breached healthcare records, dropping 75.5% from August to 1,253,258 records across the 47 reported data breaches, which is the third-lowest total over the past 12 months.

Healthcare records breached over the past 12 months

Largest Healthcare Data Breaches Reported in September 2021

16 healthcare data breaches were reported in September 2021 that involved the exposure, theft, or impermissible disclosure of more than 10,000 healthcare records.

The largest breach of the month was reported by the State of Alaska Department of Health & Social Services. The breach was initially thought to have resulted in the theft of the personal and protected health information (PHI) of all state residents, although the breach was reported to the HHS as affecting 500,000 individuals. The cyberattack is believed to have been conducted by a nation-state hacking group.

Two major data breaches were reported by eye care providers: A hacking incident at U.S. Vision Optical resulted in the exposure of the PHI of 180,000 individuals, and a phishing incident at Simon Eye Management gave the attackers access to email accounts containing the PHI of 144,373 individuals. The breaches are not believed to be related, but they are two of a handful of recent incidents affecting eye care providers.

Ransomware continues to be extensively used in attacks on the healthcare industry. 6 of the top 16 attacks in September involved ransomware and potentially saw PHI stolen. Several ransomware gangs have targeted the healthcare sector, with the FIN12 group one of the most active. A recent analysis of FIN12 attacks by Mandiant revealed 20% of the gang’s attacks have been on the healthcare industry, with the attacks accounting for around 20% of all incidents Mandiant responds to.

Hackers have been targeting the healthcare industry, but data breaches can also be caused by insiders with privileged access to PHI. One notable ‘insider’ breach was reported by Premier Management Company and involved data being accessed by a former employee after termination. The incident highlights the importance of ensuring access to PHI (and IT systems) is blocked immediately when an employee is terminated, leaves the company, or when job functions change that no longer require an employee to have access to PHI.

Name of Covered Entity State Covered Entity Type Individuals Affected Cause of Breach
State of Alaska Department of Health & Social Services AK Health Plan 500,000 Nation-state hacking Incident
U.S. Vision Optical NJ Healthcare Provider 180,000 Unspecified hacking incident
Simon Eye Management DE Healthcare Provider 144,373 Email account breach (phishing)
Navistar, Inc. Health Plan and the Navistar, Inc. Retiree Health Benefit and Life Insurance Plan IL Health Plan 49,000 Ransomware attack
Talbert House OH Healthcare Provider 45,000 Unspecified hacking incident (data exfiltration)
Premier Management Company TX Healthcare Provider 37,636 PHI accessed by an employee after termination
Central Texas Medical Specialists, PLLC dba Austin Cancer Centers TX Healthcare Provider 36,503 Malware
Orlick & Kasper, M.D.’s, P.A. FL Healthcare Provider 30,000 Theft of electronic devices containing PHI
McAllen Surgical Specialty Center, Ltd. TX Healthcare Provider 29,227 Ransomware attack
Asarco Health, Dental, Vision, Flexible Spending, Non-Union Employee Benefits, and Retiree Medical Plans AZ Health Plan 28,000 Ransomware attack
Horizon House, Inc. PA Healthcare Provider 27,823 Ransomware attack
Rehabilitation Support Services, Inc. NY Healthcare Provider 23,907 Unspecified hacking incident (data exfiltration)
Samaritan Center of Puget Sound WA Healthcare Provider 20,866 Theft of electronic devices containing PHI
Directions for Living FL Healthcare Provider 19,494 Ransomware attack
Buddhist Tzu Chi Medical Foundation CA Healthcare Provider 18,968 Ransomware attack
Eastern Los Angeles Regional Center CA Business Associate 12,921 Email account breach (phishing)

Causes of September 2021 Healthcare Data Breaches

Hacking and other IT incidents continue to dominate the breach reports, accounting for 53.2% of all breaches reported in the month and 91.6% of all breached records. 1,147,383 healthcare records were exposed or stolen in those incidents, with an average breach size of 33,747 records and a median breach size of 2,453 records.

The number of incidents involving the theft of physical records or electronic equipment containing PHI increased month-over-month. September saw 6 theft incidents reported and 60,236 records compromised. The mean breach size was 10,039 records and the median breach size was 3,918 records. 4 of those breaches involved electronic equipment and could have been prevented had encryption been used.

There were 7 data breaches reported that involved unauthorized access or disclosures of data by insiders. 45,639 records were breached across those incidents, 37,636 of which were obtained in a single incident. The average breach size was 6,520 records and the median breach size was 1,738 records.

Causes of September 2021 healthcare data breaches

Given the high number of hacking and ransomware incidents reported, it is no surprise that the most common location of breached PHI is network servers. Email accounts continue to be targeted in phishing attacks, with 13 incidents in September involving PHI stored in email accounts. The number of devices containing PHI that were stolen highlights the importance of using encryption to protect stored data.

Location of PHI in September 2021 healthcare data breaches

September 2021 Data Breaches by HIPAA-Regulated Entity

Healthcare providers were the worst affected covered entity with 30 reported breaches. 10 breaches were reported by health plans, 6 breaches were reported by business associates, and one breach was reported by a healthcare clearinghouse.

5 breaches of those breaches were reported by a HIPAA-covered entity but occurred at a business associate. The adjusted figures are shown in the pie chart below.

September 2021 healthcare data breaches by HIPAA-regulated entity type

September 2021 Healthcare Data Breaches by State

Data breaches were reported by HIPAA-regulated entities based in 25 states. Texas was the worst affected state with 6 reported breaches of 500 or more records, followed by California with 5 breaches and Connecticut with 4.

State Breaches
Texas 6
California 5
Connecticut 4
Florida & Washington 3
Arizona, Georgia, Illinois, New York, Ohio, & Pennsylvania 2
Alaska, Delaware, Indiana, Kentucky, Maryland, Minnesota, Missouri, New Jersey, New Mexico, Oregon, Rhode Island, Tennessee, Virginia, & Wisconsin 1

HIPAA Enforcement Activity in September 2021

The Department of Health and Human Services’ Office for Civil Rights now has a new director, and it is currently unclear what direction she will take in the department’s HIPAA enforcement actions.

Since the fall of 2019 OCR has been targeting HIPAA-regulated entities that fail to comply with the HIPAA Right of Access and September saw the 20th financial penalty imposed under this initiative for the failure to provide individuals with access to their healthcare records.

Children’s Hospital & Medical Center in Omaha, NE, settled its HIPAA Right of Access case with OCR and paid an $80,000 financial penalty. This was the ninth OCR case this year to have resulted in a financial penalty for non-compliance with the HIPAA Rules.

There were no reported enforcement activities by state attorneys general in September.

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