Lehigh Valley Health Network has agreed to settle alleged violations of the HIPAA Rules with the HHS’ Office for Civil Rights (OCR) and will pay an $800,000 financial penalty and adopt a corrective action plan to address identified areas of noncompliance. This is OCR’s 22^nd investigation of a ransomware attack to result in a financial penalty for noncompliance with the HIPAA Rules.

OCR launched an investigation after receiving a breach report on May 15, 2026, from Lehigh Valley Health Network about a cybersecurity incident that exposed the protected health information (PHI) of 248,359 individuals. Lehigh Valley Health Network identified suspicious activity within its network in early February 2023 and later confirmed that ransomware was involved. The ALPHV/BlackCat ransomware group breached parts of its network, specifically IT systems related to Delta Medix, a company acquired by Lehigh Valley Health Network in 2021. The ransomware group exfiltrated files containing patient information and issued a ransom demand. The ransom was not paid, and the stolen data was leaked on the ransomware group’s dark web data leak site.

Data stolen and leaked in the incident included names, addresses, dates of birth, Social Security numbers, driver’s license numbers, financial information, diagnoses and conditions, lab results, medications, and treatment information. In addition, photographs of cancer patients receiving radiation oncology treatment were stolen in the incident and leaked online, including photographs of patients who were naked from the waist up. Lehigh Valley Health Network was sued over the data breach and settled the class action litigation for $65 million.

OCR’s investigation identified multiple potential violations of the HIPAA Rules, including two violations of the HIPAA Security Rule. Lehigh Valley Health Network was determined to have failed to conduct a comprehensive and accurate risk analysis to identify risks and vulnerabilities to electronic PHI, and failed to implement policies and procedures for regularly reviewing records of activity in information systems containing ePHI, such as audit logs, access reports, and security incident tracking reports. These failures led to the impermissible disclosure of the ePHI of 248,359 individuals, in violation of the HIPAA Privacy Rule.

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OCR also determined that Lehigh Valley Health Network failed to issue timely notifications to the affected individuals to alert them to the theft of their personal and health information and did not issue a timely notification to the Secretary of the Department of Health and Human Services, in violation of the HIPAA Breach Notification Rule. According to OCR, the intrusion was detected on February 4, 2026, and OCR was notified about the incident on May 15, 2026. The HHS Secretary must be notified about a breach of unsecured protected health information within 60 days of discovery of a breach. While OCR has not stated that it has an active enforcement initiative targeting noncompliance with the HIPAA Breach Notification Rule, a significant number of recent settlements have involved penalties for breach notification failures, including five of the 12 HIPAA settlements announced this year and five settlements last year.

Under the terms of the settlement agreement, in addition to the financial penalty, Lehigh Valley Health Network has agreed to adopt a corrective action plan that includes the requirements to conduct a comprehensive and accurate risk analysis, develop a risk management plan, review and revise its policies and procedures to ensure compliance with the HIPAA Rules, and develop training materials and provide training to its workforce on the HIPAA Rules relative to the performance of individuals’ job duties. OCR will monitor Lehigh Valley Health Network for compliance for a period of three years.

“Failure to conduct an accurate and thorough risk analysis and to undertake regular review of information system activity makes regulated entities attractive targets for cyberattacks,” said OCR Director Paula M. Stannard. “The best defense against cyberattacks is full implementation of the HIPAA Security Rule.”

The post Lehigh Valley Health Network Pays $800K Penalty to Resolve HIPAA Violations appeared first on The HIPAA Journal.

In July 2026, 77 healthcare data breaches affecting 500 or more individuals were reported to the U.S. Department of Health and Human Services (HHS) Office for Civil Rights. July was the third consecutive month in which large healthcare data breaches increased, with a month-over-month increase of 10%.

Last year was a record-breaking year for healthcare data breaches. The OCR data breach portal currently shows 806 large healthcare data breaches in 2025 – an increase of 8.6% from 2024. While 2026 was looking like there would be a fall in large healthcare data breaches, the year-to-date figures now suggest otherwise. The exact same number of data breaches are listed on the OCR data breach portal for January to July as this time in 2025, and it is likely that some breaches have yet to be added to the portal.

July was the worst month since October 2025 in terms of individuals affected by healthcare data breaches. Across the 77 large data breaches, the protected health information of at least 33,485,970 individuals was exposed or impermissibly disclosed – an increase of 642% from June 2026, and 154% higher than the 12-month average of 13.2 million individuals per month.

The year-to-date figures show an increase in breach severity year-over-year. Between January and July 2026, the protected health information of 67,400,422 individuals was exposed or impermissibly disclosed; an increase of 35.1% from this time last year.

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Biggest Healthcare Data Breaches in July 2026

In July, 23 security incidents were reported to OCR involving the protected health information of 10,000 or more individuals, including four very large data breaches that each affected more than 1 million individuals. One of the incidents was the 4^th largest healthcare data breach of all time to be reported by a single HIPAA-regulated entity, affecting an estimated 15 million individuals. The four biggest healthcare data breaches in July affected more than 32 million individuals – more than 9% of the population of the United States.

The largest data breach occurred at DentaQuest, a Sun Life U.S-owned dental and vision benefits administrator, which fell victim to a cyberattack by the notorious data theft and extortion group ShinyHunters. In early June 2026, DentaQuest announced that it was investigating a cybersecurity incident involving a limited part of its computer network. The threat group had access to its network for around 3 days in May 2026. ShinyHunters claimed responsibility and said 234 GB of data was exfiltrated in the incident, then started leaking the stolen data as it failed to reach an agreement with DentaQuest on a ransom payment. The leak included around 2.6 million unique email addresses, and the breach was reported to OCR as affecting an estimated 15 million individuals. That total may increase as the investigation progresses.

The next three largest data breaches all occurred at business associates of HIPAA-covered entities. Aesto Health, a healthcare technology company that offers secure data migration, legacy data archiving, and electronic health record (EHR) exchanges, experienced a hacking incident that affected at least 39 of its healthcare clients and involved the protected health information of more than 9.5 million individuals. The incident occurred in December 2025 and involved unauthorized access to its AWS environment. No threat group appears to have claimed responsibility.

Unlimited Technology Systems, an Ohio-based revenue cycle management and practice management software company, discovered its network had been accessed by an unauthorized third party for five days in October 2025, and potentially obtained the protected health information of more than 3.8 million individuals. A similar-sized data breach was reported by CareCloud, a provider of cloud-based and AI-powered EHR, RCM, PM, and clinical documentation solutions, which discovered that a threat actor accessed its AWS environment over 6 days in March 2026, and likely exfiltrated databases containing the protected health information of more than 3.7 million individuals. As with the incident at Unlimited Technology Systems, no threat group appears to have claimed responsibility.

When the number of affected individuals is not known by the HIPAA Breach Notification Rule reporting deadline, OCR should be provided with an estimate. The total can then be amended when the data review is completed. It is common for regulated entities to provide an “estimate” of 500 or 501 individuals, as appears to be the case with seven of the breaches reported in July.

Causes of June 2026 Healthcare Data Breaches

A majority of the data breaches reported in July were due to hacking and other IT-related incidents, including all but one of the 23 data breaches affecting 10,000 or more individuals. In July, 67 of the month’s data breaches (87%) were reported as hacking/IT-related incidents, involving the protected health information of 33,446,371 of the month’s affected individuals (99.9%). The average breach size was 499,200 individuals, and the median breach size was 4,851 individuals.

Between January 1 and July 31, 414 hacking/IT incidents were reported – 86% of all data breaches – and they accounted for 97.8% of all affected individuals (65,89,1098 individuals). While the same number of healthcare data breaches have been reported as this time last year, hacking/IT incidents have increased by 7.3% year-over-year.

In July 2026, 9 of the month’s data breaches were reported as unauthorized access/disclosure incidents (11.7% of incidents), involving the protected health information of 23,054 of the month’s affected individuals (0.07%). The average breach size was 2,562 individuals, and the median breach size was 1,680 individuals. Between January 1 and July 31, 62 unauthorized access/disclosure incidents were reported – 12.9% of all data breaches – and they accounted for 2.2% of all affected individuals (1,490,420 individuals). Unauthorized access/disclosure incidents have decreased by 27% year-over-year.

In July 2026, only one of the month’s data breaches was due to the improper disposal of protected health information (1.3%), and that incident affected 16,545 individuals (0.05%). Between January 1 and July 31, 2 improper disposal incidents were reported – 2.6% of all data breaches – and they accounted for 0.03% of all affected individuals (17,545 individuals). Improper disposal incidents have doubled year-over-year.

No loss/theft incidents were reported in July. Between January 1 and July 31, only 2 loss/theft incidents were reported – 0.4% of all data breaches – and they accounted for 0.002% of all affected individuals (1,359 individuals). Loss/theft incidents have decreased by 400% year-over-year.

Location of Breached Protected Health Information

In July, network servers were the most common location of breached protected health information, followed by email systems.

Data Breaches at HIPAA Regulated Entities

The HIPAA Breach Notification Rule requires HIPAA-covered entities to report data breaches to OCR and notify the affected individuals. Notifications must also be issued when there is a data breach at a business associate of a HIPAA-covered entity; however, it is ultimately the responsibility of each affected HIPAA-covered entity to ensure that notifications are issued. A covered entity may delegate the reporting requirements to the business associate that experienced the data breach, or may choose to issue notifications themselves. The raw breach data on the OCR breach portal shows data breaches based on the reporting entity, not where the data breach occurred.

In July, healthcare providers reported 56 data breaches, business associates reported 12 breaches, and 9 breaches were reported by health plans. The pie charts below show where the breach actually occurred rather than the reporting entity to better reflect data breaches at business associates.

Geographical Distribution of Healthcare Data Breaches

In July, large healthcare data breaches were reported to OCR by HIPAA-regulated entities in 30 U.S. states and the District of Columbia. Texas was the worst affected state with 11 large data breaches, closely followed by California with nine.

Massachusetts topped the list in terms of affected individuals, with more than 18 million individuals affected across its five data breaches, followed by Alabama, which experienced one data breach that affected more than 9.5 million individuals across the United States.

HIPAA Enforcement Activity in July 2026

OCR announced one HIPAA enforcement action in July to resolve alleged violations of the HIPAA Rules. OSF Healthcare System is a Peoria, Illinois-based integrated health system that serves patients at 174 locations in Illinois and Michigan, including 16 hospitals. OSF Healthcare System was investigated by OCR in response to a reported cybersecurity incident that exposed the protected health information of 53,907 individuals. A ransomware group breached its network, stole patient data, encrypted files, and demanded payment to delete the stolen data and unlock the encrypted files. The attack was discovered by OSF Healthcare System in April 2021.

OCR’s investigators determined OSF Healthcare System failed to conduct a HIPAA-compliant risk analysis, there was an impermissible disclosure of the ePHI of 53,907 individuals, and a failure to provide timely notifications to OCR and the affected individuals. The alleged HIPAA violations were settled, with OSF Healthcare System and its Affiliated Covered Entities agreeing to pay a $552,250 financial penalty and adopt a corrective action plan to address the identified areas of noncompliance.

This was another enforcement action under OCR’s risk analysis enforcement initiative. While OCR has not announced a specific enforcement initiative targeting noncompliance with the HIPAA Breach Notification Rule, OCR appears to be looking closely at HIPAA Breach Notification Rule compliance. Since the start of 2025, eight HIPAA settlements have included penalties for Breach Notification Rule failures.

About this Report

The HIPAA Journal monthly data breach reports are based on data obtained from the HHS Office for Civil Rights and have been combined with breach report data from other sources. The data breaches included in this report were reported in July 2026 but occurred weeks or months previously. The data was obtained from OCR on October 10, 2026. The figures in this report may increase or decrease as HIPAA-regulated entities complete their breach investigations, and those changes will be reflected in our healthcare data breach statistics page and our annual HIPAA data breach reports. Further information about HIPAA enforcement actions can be found in our HIPAA violations cases page.

The post July 2026 Healthcare Data Breach Report appeared first on The HIPAA Journal.

There has been a 5.9% decline in healthcare breaches compared to H1 2025. Between January 1 and June 30, 2026, 397 data breaches affecting 500 or more individuals were reported to the U.S. Department of Health and Human Services (HHS) Office for Civil Rights – the lowest H1 total since 2023. While the year-over-year reduction in healthcare data breaches is a step in the right direction, healthcare data breaches continue to be reported in high numbers. In the first six months of the year, large healthcare data breaches were reported at a rate of more than 2.2 per day.

Across the 397 reported data breaches, the protected health information of 33.77 million individuals was exposed or impermissibly disclosed. That represents a 22.6% reduction in affected individuals compared to H1 2025, and it is the lowest number of affected individuals in H1 since 2023.

If data breaches continue to be reported at a similar rate in the second half of the year, the end-of-year healthcare data breach total is likely to be lower than 2025, which was a record-breaking year with 804 data breaches currently listed on the OCR breach portal for 2025. The current total also suggests that this year could see a major reduction in affected individuals, as more than 140 million individuals were affected in 2025. That said, several very large data breaches have yet to be added to the OCR breach portal for this year.

The Biggest Healthcare Data Breaches in H1 2026

In the first half of the year, nine healthcare data breaches were reported that affected more than 1 million individuals, the largest breach of which affected more than 5.8 million individuals. All but two of the top twenty data breaches were due to hacking incidents or ransomware attacks. The two non-hacking breaches were unauthorized access/disclosure incidents, and both occurred at state departments of human services.

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The majority of the data breaches reported in H1 2026 were relatively small, affecting fewer than 10,000 individuals. Currently, 37 healthcare data breaches are listed as affecting 500 or 501 individuals. These are commonly used placeholder figures when data reviews are incomplete by the breach reporting deadline. The majority of those 37 data breaches are likely to see the totals increased, potentially significantly. The Change Healthcare data breach in 2024 was initially reported to OCR as affecting at least 500 individuals but was subsequently increased to 192.7 million individuals!

Causes of H1 2026 Healthcare Data Breaches

While the number of large healthcare data breaches has fallen year-over-year, the lower H1 figures this year are due to fewer unauthorized access/disclosure and loss/theft incidents, rather than hacking/IT incidents, which increased for the third consecutive year.

H1 2026 Hacking/IT Incidents

Hacking/IT incidents remain the leading cause of healthcare data breaches and increased again in 2026. Ransomware groups continue to attack the healthcare sector, and there has been an increasing trend of data theft and extortion incidents, where data is stolen and threats are issued to publish the stolen data, but files are not encrypted.

As also observed by the Identity Theft Resource Center, there has been a growing trend of breached entities failing to disclose the nature of data breaches, including the cause, whether ransomware was involved, and, concerningly, if data was stolen in the incident. The lack of a breach cause makes it difficult to assess trends, while the failure to disclose whether data has been stolen makes it difficult for individuals to gauge the level of risk they face.

In H1, 343 hacking/IT incidents were reported, affecting an average of 94,167 individuals (median breach size: 4,800 individuals). Hacking/IT incidents have increased by 2.1% year-over-year increase in hacking/IT incidents, although the number of affected individuals has reduced by 14.7% year-over-year.

H1 2026 Unauthorized Access/Disclosure Incidents

Unauthorized access and disclosure incidents were the second leading cause of healthcare data breaches in H1 2026. These incidents include any unauthorized access to and disclosure of patient records that are not hacking- or IT-related. They include snooping incidents by insiders, misdirected emails and mailings, and unauthorized data sharing between HIPAA-regulated entities and third parties.

These incidents tend to affect far fewer individuals than hacking and IT incidents, although not always. Incidents involving website tracking tools such as pixels, for example, can affect millions of individuals. The two largest unauthorized access/disclosure incidents made it into the top 20 largest breaches of the first half of the year and occurred at the Illinois Department of Human Services and Minnesota Department of Human Services. The former involved data uploaded to a website for internal use that was accessible via the public internet, and the latter involved a user associated with an authorized healthcare provider accessing data without authorization.

In H1, 51 unauthorized access/disclosure incidents were reported, affecting an average of 28,710 individuals (median breach size: 2,315 individuals).  That represents a 3.8% year-over-year decline in unauthorized access/disclosure incidents, and a 74.2% decline in affected individuals.

H1 2026 Loss/Theft Incidents

Loss and theft of electronic devices containing protected health information and paper records used to be a leading cause of data breaches; however, the adoption of digital records, data encryption, and cloud storage of protected health information has helped reduce these incidents. In H1 2026, only two such incidents were reported – one loss and one theft incident, both involving a relatively small number of paper records. That equates to a 75% year-over-year reduction in data breaches, and a 96.7% reduction in affected individuals.

H1, 2026 Improper Disposal Incidents

Improper disposal incidents are rarely reported, and when they are, they almost always involve paper records inadvertently disposed of with regular trash. Only one such incident was reported by a HIPAA-regulated entity in H1 2026 – a relatively small data breach affecting an estimated 1,000 individuals. A single improper disposal incident was also reported in H1 2025, althopugh the number of affected individuals has fallen by 97% year-over-year.

Data Breaches at HIPAA Regulated Entities

Healthcare providers were the worst affected HIPAA-regulated entities in H1 2026 (290 data breaches), followed by business associates (59 data breaches), and health plans (48 data breaches). Healthcare clearinghouses survived the first 6 months of the year without any data breaches. The same order applies in terms of individuals affected by those breaches, with healthcare providers topping the list (19,701,297 individuals), followed by business associates (12,505,090 individuals), and health plans (1,559,474 individuals).

Those figures do not tell the full story, as when a data breach occurs at a business associate, it is not always the business associate that reports the data breach. When a data breach occurs at a business associate, the business associate must notify each affected covered entity, and the covered entity may delegate the reporting and notification requirements to the business associate or may choose to report the data breach and/or send notification letters themselves. If a breach occurs at a business associate, some affected covered entities may delegate the reporting and notification responsibilities to the business associates while others may not. As such, business associate data breaches are often underrepresented in the raw breach data.

The charts below are based on where the data breach occurred, rather than the reporting entity. While the same order applies to both data breaches and affected individuals, almost 100 more breaches occurred at business associates than the raw data suggests.

Based on the adjusted data, the average size of a data breach at a healthcare provider (87,629 individuals) and a business associate (87,643 individuals) was virtually identical, although the median size of a data breach at a healthcare provider (6,323 individuals) is twice that of a business associate (3,086 individuals). In H1 2026, health plan breaches were less severe. The average breach size was less than half the size at other entities at 41,042 individuals, and the median breach size was 2,871 individuals.

Location of Breached Protected Health Information

Given the high number of hacking incidents, it is unsurprising that the most common location of breached protected health information is network servers, as has been the case for several years. Email remains a common location of breached healthcare data due to a relatively high prevalence of phishing and social engineering incidents. While not infallible, multifactor authentication would have prevented many of these data breaches.

A small but significant number of healthcare data breaches involved paper records, although the number of incidents involving physical records is falling. Breaches of protected health information in “other” locations – including the cloud – are on the rise.  Widespread adoption of encryption and use of the cloud have helped to drastically reduce the number of loss and theft incidents.

Geographic Distribution of Healthcare Data Breaches

In H1 2026, large healthcare data breaches were reported by HIPAA-regulated entities in 44 U.S. states, the District of Columbia, and Puerto Rico. The only states to escape the first half of the year unscathed were Hawaii, Montana, New Mexico, North Dakota, South Dakota, and Wyoming.

As a general rule, the states with the biggest populations experience the most data breaches, and vice versa for the states with the fewest number of breaches. California, Texas, Florida, and New York are the most heavily populated states in that order, and the same order applies in H1 2026 in terms of data breaches.

HIPAA Enforcement Activity in H1 2026

OCR has increased the number of penalties imposed for HIPAA violations in recent years, although financial penalties are still relatively rare. OCR investigates all data breaches affecting 500 or more individuals, and when potential HIPAA violations are identified, they are typically resolved through voluntary compliance or by providing technical assistance.

Financial penalties are typically reserved for egregious or particularly impactful HIPAA violations, when there has been a history of noncompliance, and when OCR has an enforcement initiative targeting a specific aspect of the HIPAA regulations. Currently, OCR has two main enforcement initiatives, one targeting noncompliance with the HIPAA Right of Access of the HIPAA Privacy Rule, and another targeting noncompliance with the risk analysis implementation specification of the HIPAA Security Rule.

The HIPAA Right of Access enforcement initiative has been active since late 2019 and has resulted in more than 55 financial penalties. The risk analysis enforcement initiative is more recent and was formally launched in October 2024 in response to widespread noncompliance with this specific security rule provision and its importance for cybersecurity. To date, OCR has imposed 14 financial penalties under this initiative. The risk analysis enforcement initiative has been expanded this year to include risk management. In addition to demonstrating that a HIPAA-compliant risk analysis has been conducted, OCR requires evidence that the identified risks have been properly managed and reduced to a low and acceptable level in a reasonable time frame.

Between January 1 and June 30, 2026, OCR announced seven settlements to resolve alleged violations of the HIPAA Rules, all seven of which included a financial penalty for a risk analysis violation. While OCR has not announced a specific initiative targeting noncompliance with the HIPAA Breach Notification Rule, two of the seven penalties this year included a fine for breach notification failures. Five of the fourteen penalties imposed in 2025 also included penalties for breach notification failures, which suggests OCR is paying close attention to the time taken to issue breach notifications to OCR, the affected individuals, and the media.

H1 2026 HIPAA Settlements and Civil Monetary Penalties

OCR is the main enforcer of the HIPAA Rules, although state attorneys general are also authorized to enforce HIPAA compliance and can impose financial penalties in their respective states. In H1 2026, only one penalty was announced at the state level. Massachusetts and Connecticut participated in a joint investigation of Comstar LLC over a data breach affecting 585,621 individuals (326,426 Massachusetts residents & 22,829 Connecticut residents). The investigation identified violations of the HIPAA Security Rule and the Massachusetts Data Security Regulations. The case was settled with a $515,000 financial penalty.

HIPAA Regulatory Updates

There were no new updates to the HIPAA Rules in the first half of 2026, although there are two pending final rules. During President Trump’s first term in December 2020, OCR proposed an update to the HIPAA Privacy Rule to support coordinated care and improve individual engagement in healthcare. The proposed rule was formally introduced in the Federal Register in January 2021, but a final rule stalled, as OCR had other priorities under the Biden Administration. The return of President Trump for a second term has seen the proposed rule rekindled. OCR set a target of August 2026 for the release of a final rule, although it has yet to be issued.

The other pending final rule is for proposed changes to the HIPAA Security Rule. A notice of proposed rulemaking was announced by OCR in the final days of the Biden administration in late December 2024 and was published in the Federal Register on January 6, 2025. OCR received several thousand comments from industry stakeholders about the proposed changes, including a significant amount of criticism. OCR set a target release date of May 2026 for a final rule; however, it has now been pushed back until July 2027, although a final decision about whether to issue a final rule has yet to be made by the Trump administration.

While there were no new HIPAA updates in H1 2026, the compliance date for updates to the HIPAA Notice of Privacy Practices requirements was February 16, 2026 – the only surviving part of the now vacated HIPAA update to strengthen reproductive healthcare privacy. The Notice of Privacy Practices compliance deadline aligned with the compliance deadline for changes to the 42 CFR Part 2 regulations concerning substance use disorder (SUD) patient records to align those regulations more closely with HIPAA.

About this Report

This report is based on healthcare data breaches affecting 500 or more individuals that were reported to the HHS’ Office for Civil Rights in H1 2026. The data for this report was obtained from OCR on September 10, 2026, and includes supplemental information from data breach reporting from the HIPAA Journal.

You can view more comprehensive healthcare data breach facts and statistics from 2009 to the present on our data breach statistics page, and more comprehensive and up-to-date information on HIPAA enforcement actions on our HIPAA violation cases page, both of which are regularly updated. Information on the latest regulatory changes can be found on our HIPAA Updates/HIPAA Changes page.

The post H1 2026 Healthcare Data Breach Report appeared first on The HIPAA Journal.

A coalition of 44 state attorneys general has agreed to settle a multistate investigation of Laboratory Corporation of America (Labcorp) regarding a 2019 data breach at its debt collection company, American Medical Collection Agency (AMCA). Labcorp has agreed to pay $2,287,455, which will be divided among the 44 states participating in the action.

AMCA is a subsidiary of the debt collection company Retrieval-Masters Creditors Bureau (RMCB) and provides small debt collection services to healthcare organizations, including laboratories and medical testing facilities. The hacking incident was identified by RMCB on March 19, 2029, and the forensic investigation determined that a hacker breached the AMCA network around 8 months before the intrusion was detected. The hacker had access to the network from August 1, 2018, until March 30, 2019, and exfiltrated sensitive data including names, personal information, Social Security numbers, financial information, medical test information, and diagnostic codes.

The AMCA data breach was the largest data breach reported in 2019 by a HIPAA-regulated entity, affecting more than 27.5 million individuals, including more than 10.2 million Labcorp patients. The high cost of remediation forced AMCA to file for bankruptcy protection. AMCA was also investigated by the coalition, led by the Indiana, Texas, Connecticut, and New York attorneys general, and received permission from the bankruptcy court to settle the multistate action, filing for dismissal of the bankruptcy on December 9, 2020.

The settlement required AMCA to develop, implement, and maintain an information security program and implement a range of data security measures, including developing an incident response plan and appointing a qualified Chief Information Security Officer (CISO). A financial penalty of $21 million was suspended due to the financial position of the company.

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The investigation of Burlington, NC-based Labcorp was led by the attorneys general of Connecticut, Florida, Indiana, Illinois, Michigan, and Texas and identified potential violations of the Health Insurance Portability and Accountability Act (HIPAA) and state consumer protection and breach notification laws. The Labcorp settlement includes a financial penalty and injunctive relief. Labcorp must ensure that it does not misrepresent the extent to which it maintains and protects the privacy, security, and confidentiality of personal information (PI) and protected health information (PHI) and must implement a range of security measures, including but not limited to the following:

• Review, revise, and update its information security program.
• Employ an executive or officer as a CISO to oversee the implementation and maintenance of its information security program.
• Provide security awareness training to all personnel who have access to or responsibility for PI and/or PHI.
• Implement an incident response plan, which must include a plan for vendor security incidents.
• Ensure procedures are implemented for reporting vendor security incidents internally to senior management.
• Develop policies and procedures governing the collection, use, disclosure, and retention of PI and PHI, including specific policies and procedures for PI and PHI shared with debt collectors.
• Minimize the PI and PHI shared with debt collectors.
• Develop, implement, and maintain a vendor risk management program; maintain a vendor risk management team; and use security assessment and management tools for vendor assessment and monitoring, with specific requirements for debt collectors.
• Require all debt collectors to conduct risk assessments, and contractually require debt collectors to conduct penetration tests of systems containing PI and PHI, and annual SOC 2 Type 2 audits.
• Labcorp must also engage a third-party assessor to perform an information security assessment, with a focus on vendor risk management.

Labcorp was also named as a defendant in class action litigation against AMCA and other AMCA clients, and agreed to a $35,000,000 settlement earlier this year. The class action lawsuit is ongoing against other AMCA clients.

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