Legal News about HIPAA and Healthcare Compliance

Children’s Healthcare of Atlanta Sued for Disclosing Health Information to Facebook

Children’s Healthcare of Atlanta is one of the latest healthcare providers to face a class action lawsuit over the use of website tracking technologies. According to the lawsuit, Children’s Healthcare of Atlanta added Meta pixel tracking code to its CHOA.org website and its MyChart patient portal. The tracking code was used by Children’s Healthcare of Atlanta to collect data to use for marketing purposes and transmitted the collected data to Facebook and was used to serve targeted ads.

The lawsuit was filed in the Superior Court of DeKalb County State of Georgia and alleges the tracking code was knowingly configured to collect user data from the website and patient portal, and that the code transmitted data to Facebook, including sensitive health information such as information about patients’ health concerns, appointment details, and treatments. The information was not anonymous, as it was tied to individuals via identifiers such as IP addresses, Facebook IDs, and browser and device information.

The lawsuit alleges that the addition of the tracking code to the website and patient portal, and the subsequent disclosures of protected health information to Facebook, violated the Health Insurance Portability and Accountability Act (HIPAA) and the Children’s Healthcare of Atlanta privacy policy. The plaintiff, who filed the lawsuit individually and on behalf of her two children, alleges that at no point was she told that Children’s Healthcare of Atlanta would be sharing her and her children’s data with third parties for profit, did not provide her consent, and was not made aware that the data would be provided to Facebook, which the lawsuit described as, “a company with a sordid history of violating consumer privacy in pursuit of ever-increasing advertising revenue.”

The lawsuit alleges the plaintiff and class members have been harmed by the disclosures, including but not limited to an invasion of their privacy rights, and bring causes for negligence, negligence per se, invasion of privacy, breach of implied contract, unjust enrichment, breach of fiduciary duty, breach of confidence, and bailment. The lawsuit seeks damages and other relief that the court deems just and proper. The plaintiff and class are represented by attorneys from the law firms Alonso Wirth; Cohen & Malad; Stranch, Jennings & Garvey; and Turke & Strauss.

A lawsuit against Seattle Children’s Hospital (SCH) that made similar allegations with respect to the use of Meta pixel was recently dismissed with prejudice by a Washington court.  Seattle Children’s Hospital successfully argued that it only transmitted anonymous data to third parties, stated disclosures of anonymous data to third parties in its privacy policy, and that it had not added tracking code to its patient portal. SCH said any identifiable information that was disclosed was due to the plaintiffs using browsers that allowed them to be identified, for which they gave their consent.

The post Children’s Healthcare of Atlanta Sued for Disclosing Health Information to Facebook appeared first on HIPAA Journal.

Atlanta Women’s Health Group Sued Over 2023 Ransomware Attack

Atlanta Women’s Health Group is facing a class action lawsuit over an April 2023 cyberattack that saw an unauthorized third party gain access to its servers and the sensitive data of tens of thousands of its patients. Atlanta Women’s Health Group discovered the attack on April 12, 2023, and its forensic investigation confirmed that patients’ protected health information had been exposed. The types of information involved included names, dates of birth, patient ID numbers, and other information that may be contained in medical records. It was not possible to determine the exact types of information that were accessed or acquired, so notifications were sent to all individuals who had potentially been affected.

A lawsuit – M.T., vs. Atlanta Women’s Health Group P.C. – was filed in the U.S. District Court for the Northern District of Georgia Atlanta Division that alleged the OB/GYN healthcare provider had implemented inadequate data security measures and breached its duties imposed by law. As a result of those failures, unauthorized individuals were able to gain access to its network and steal highly sensitive patient data. Had appropriate cybersecurity measures been implemented, the cyberattack and data breach could have been avoided.

The lawsuit also alleged that while the Department of Health and Human Services’ Office for Civil Rights was notified about the breach within 60 days of discovery, it took Atlanta Women’s Health Group 10 months to issue email notifications to the plaintiff and class members about the attack and did not explain the reason for the delay. The letters stated that all patients were notified about the attack out of an abundance of caution; however, if that is the case, there was no reason to wait 10 months to send the notifications. The lawsuit also stated that the notification letters did not explain when the attack occurred, only when it was detected, and that while Atlanta Women’s Health Group claimed to have obtained evidence that the hackers had deleted the stolen data, the practice has no proof that the data has been permanently erased and copies of that data have not been made by the attackers.

The lawsuit claims the plaintiff and class members have been “exposed to a present injury in the form of actual misuse of their PII and PHI and have further been exposed to an ongoing substantial, heightened, and imminent risk of financial fraud and identity theft for years to come,” and that they have “suffered numerous actual and concrete injuries and damages.” The lawsuit alleges breach of fiduciary duty, negligence, negligence per se, and invasion of privacy/intrusion upon seclusion and seeks class action certification, a jury trial, and declaratory and injunctive relief. The plaintiffs are represented by MaryBeth V. Gibson of the Gibson Consumer Law Group, LLC; Todd McClelland of Sterlington, PLLC; Michael Sullivan, David H. Bouchard, and Gabriel Knisely of Finch McCranie, LLP.

The post Atlanta Women’s Health Group Sued Over 2023 Ransomware Attack appeared first on HIPAA Journal.

Seattle Children’s Hospital Website Tracking Technology Lawsuit Dismissed with Prejudice

A class action lawsuit against Seattle Children’s Hospital (SCH) over its use of pixels and other tracking technologies on its website has been dismissed with prejudice by a Washington court. Like many other hospitals, SCH had added pixels to its website which could track user behavior on the site. The tracking technologies were used to gather information on how the website was used to improve the site and patient engagement. Depending on a user’s interactions on the website, the pixels may have captured identifiers and health information, which was transferred to third parties.

A lawsuit was filed by parents who had used the site alleging the addition of pixels violated the Washington Privacy Act, Washington Consumer Protection Act, and Washington Uniform Health Care Information Act. They alleged an invasion of privacy, breach of implied contract, conversion, and unjust enrichment. SCH argued that the information gathered by the pixels did not amount to confidential health information and that users had accepted the terms of its privacy policy and by doing so had consented to having anonymous data shared with third parties. In cases where identifying information was disclosed to third parties, it only occurred because the plaintiffs had that information placed on their browsers by third parties such as Facebook, and not by SCH, and that the plaintiffs had consented to having that identifying information placed on their browsers.

In the lawsuit, the plaintiffs alleged that there had been sensitive interactions on the SCH website, and health information related to those interactions was transmitted to third parties. SCH maintained that the sensitive interactions that were described by the plaintiffs could only happen on its patient portal and that pixels and other tracking technologies were not present on the portal. The Washington court sided with SCH and dismissed all of the plaintiffs’ claims with prejudice.

The post Seattle Children’s Hospital Website Tracking Technology Lawsuit Dismissed with Prejudice appeared first on HIPAA Journal.

Planned Parenthood Los Angeles Settles Class Action Data Breach Lawsuit for $6 Million

Planned Parenthood Los Angeles, a provider of reproductive healthcare services in Los Angeles County, has proposed a $6 million settlement to resolve all claims related to a 2021 data breach that exposed the personal information of more than 409,437 patients.

Between October 9, 2021, and October 17, 2021, hackers accessed the Planned Parenthood Los Angeles network, exfiltrated sensitive patient data, and used ransomware to encrypt files. Planned Parenthood discovered the ransomware attack on October 17, 2021, and confirmed on November 4, 2021, that the stolen files contained patient data. The stolen data included names, addresses, dates of birth, diagnoses, health insurance information, and medical information, including procedures and prescriptions.

A lawsuitIn re: Planned Parenthood Los Angeles Data Incident Litigation – was filed in the U.S. District Court of Central California over the data breach that alleged that Planned Parenthood Los Angeles was negligent by failing to implement reasonable and appropriate cybersecurity measures in line with industry standards, and had those measures been implemented, the ransomware attack and data breach could have been avoided. The lawsuit alleged violations of the Health Insurance Portability and Accountability Act (HIPAA), the California Confidentiality of Medical Information Act (CMIA), and the California Consumer Privacy Act (CCPA).

According to the lawsuit, the timing of the breach was such that patients would be more likely to suffer harm, as it coincided with Supreme Court debates on abortion. The stolen data also included highly sensitive health information such as abortion procedures, treatment of sexually transmitted diseases, emergency contraception prescriptions, and cancer screening information.

Planned Parenthood Los Angeles chose to settle the lawsuit with no admission of wrongdoing. Claims will be accepted up to a maximum of $10,000 to recover documented losses incurred as a result of the data breach, including bank costs, credit expenses, fraudulent charges, and losses to identity theft and fraud. Class members can also claim up to 7 hours of lost time at $30 per hour and three years of credit monitoring and identity theft protection services, which include a $1 million identity theft protection policy.

Class members will also be entitled to statutory damages, with the payments depending on participation rates. Statutory damages will be paid from the remainder of the $6 million fund after claims have been paid. If there is a 10% participation rate, statutory damages are estimated to be around $66 per class member. Class members are individuals who were notified about the data breach by Planned Parenthood Los Angeles in or around November 2021.

Key Dates:

  • Deadline for objection/exclusion: June 6, 2024
  • Deadline for claims: June 7, 2024
  • Final Hearing: August 8, 2024

The post Planned Parenthood Los Angeles Settles Class Action Data Breach Lawsuit for $6 Million appeared first on HIPAA Journal.

Planned Parenthood Los Angeles Settles Class Action Data Breach Lawsuit for $6 Million

Planned Parenthood Los Angeles, a provider of reproductive healthcare services in Los Angeles County, has proposed a $6 million settlement to resolve all claims related to a 2021 data breach that exposed the personal information of more than 409,437 patients.

Between October 9, 2021, and October 17, 2021, hackers accessed the Planned Parenthood Los Angeles network, exfiltrated sensitive patient data, and used ransomware to encrypt files. Planned Parenthood discovered the ransomware attack on October 17, 2021, and confirmed on November 4, 2021, that the stolen files contained patient data. The stolen data included names, addresses, dates of birth, diagnoses, health insurance information, and medical information, including procedures and prescriptions.

A lawsuitIn re: Planned Parenthood Los Angeles Data Incident Litigation – was filed in the U.S. District Court of Central California over the data breach that alleged that Planned Parenthood Los Angeles was negligent by failing to implement reasonable and appropriate cybersecurity measures in line with industry standards, and had those measures been implemented, the ransomware attack and data breach could have been avoided. The lawsuit alleged violations of the Health Insurance Portability and Accountability Act (HIPAA), the California Confidentiality of Medical Information Act (CMIA), and the California Consumer Privacy Act (CCPA).

According to the lawsuit, the timing of the breach was such that patients would be more likely to suffer harm, as it coincided with Supreme Court debates on abortion. The stolen data also included highly sensitive health information such as abortion procedures, treatment of sexually transmitted diseases, emergency contraception prescriptions, and cancer screening information.

Planned Parenthood Los Angeles chose to settle the lawsuit with no admission of wrongdoing. Claims will be accepted up to a maximum of $10,000 to recover documented losses incurred as a result of the data breach, including bank costs, credit expenses, fraudulent charges, and losses to identity theft and fraud. Class members can also claim up to 7 hours of lost time at $30 per hour and three years of credit monitoring and identity theft protection services, which include a $1 million identity theft protection policy.

Class members will also be entitled to statutory damages, with the payments depending on participation rates. Statutory damages will be paid from the remainder of the $6 million fund after claims have been paid. If there is a 10% participation rate, statutory damages are estimated to be around $66 per class member. Class members are individuals who were notified about the data breach by Planned Parenthood Los Angeles in or around November 2021.

Key Dates:

  • Deadline for objection/exclusion: June 6, 2024
  • Deadline for claims: June 7, 2024
  • Final Hearing: August 8, 2024

The post Planned Parenthood Los Angeles Settles Class Action Data Breach Lawsuit for $6 Million appeared first on HIPAA Journal.

Contract Class Certified in CareFirst Data Breach Lawsuit 9 Years After Legal Action was Initiated

A lawsuit against CareFirst BlueCross BlueShield that was filed in response to a 2014 data breach has had a contract class certified by a federal judge, 9 years after legal action was initiated. The lawsuit can now proceed and more than 1 million plan members are a step closer to obtaining damages. In June 2014, hackers gained access to CareFirst systems, which contained the data of around 1.1 million plan members; however, the intrusion was not detected for several months. In response to major data breaches at Anthem Inc., Premera, Excellus, and Community Health Systems, CareFirst conducted a review of its systems which reviewed there had been unauthorized access to one of its databases.

CareFirst announced the data breach in May 2015 and explained that a single database was compromised that stored data that members and other individuals enter to access CareFirst’s websites and online services. The compromised data included names, birth dates, email addresses, and subscriber ID numbers, but no highly sensitive information such as Social Security numbers, financial information, or health information.

A lawsuit – Chantal Attias, et al. vs. CareFirst  – was filed in the U.S. District Court for the District of Columbia shortly after the notification letters were mailed that alleged injuries had been suffered as a result of the breach. The lawsuit, which named seven policyholders as plaintiffs, alleged breach of contract and violations of the Consumer Protection Acts in Maryland and Virginia. The lawsuit was dismissed in 2016 due to a lack of standing, as the plaintiffs failed to allege a concrete, identifiable injury had been sustained as a result of the breach. The ruling was appealed, and the District Court’s ruling was overturned. In 2018, the Supreme Court declined a review of the case, which was referred back to the District Court, then followed several years of back-and-forth litigation. In 2022, the plaintiffs moved to certify three classes, one for each cause of action; however, in March 2023, District Court Judge Christopher Cooper denied the plaintiffs’ motion to certify two consumer classes and one contract class without prejudice, allowing the plaintiffs to file a renewed and modified motion which they did.

In late 2023, CareFirst’s motion for summary judgment was partially granted, and the claims under the consumer protection statutes in Maryland and Virginia were dismissed. The court found that the plaintiffs could not show there had been any identity theft, and under Washington D.C. law, mitigation expenses incurred to abate the risk of future fraud do not qualify as actual damages, therefore the plaintiffs would only be able to recover nominal damages.

On March 29, 2023, after careful consideration and a hearing on the matter, Judge Cooper found that certification of a contract class was warranted. “The standing issue that prevented the Court from certifying the last go around has since dissolved because, as all sides agree, each member of the proposed class has allegedly suffered a concrete injury based on CareFirst’s supposed breach of its contractual obligation to safeguard its customers’ data—regardless of whether they sustained an additional, tangible injury due to the data breach,” wrote Judge Cooper in his ruling.

The contract class consists of all individuals in the District of Columbia, Maryland, or Virginia who purchased or possessed health insurance from CareFirst, had their sensitive data exposed in the data breach, and were notified about that breach by CareFirst in May 2015.

The post Contract Class Certified in CareFirst Data Breach Lawsuit 9 Years After Legal Action was Initiated appeared first on HIPAA Journal.

Lamoille Health Partners Settles Class Action Data Breach Lawsuit for $540,000

Lamoille Health Partners, a Vermont health system serving patients in Lamoille County, has agreed to settle a lawsuit that was filed in response to a June 2022 ransomware attack in which the protected health information of 59,381 patients was exposed and potentially stolen. Hackers gained access to the Lamoille Health Partners network between June 12, 2022, and June 13, 2022, and used ransomware to encrypt files. The attack exposed names, addresses, dates of birth, Social Security numbers, health insurance information, and medical treatment information. The affected individuals were notified about the breach in August 2022 and individuals who had their Social Security numbers exposed were offered complimentary identity protection and credit monitoring services.

A lawsuit – Marshall v Lamoille Health Partners Inc. – was filed in the U.S. District Court for the District of Vermont on September 1, 2022, in response to the breach that alleged Lamoille Health Partners was negligent by failing to implement reasonable and appropriate cybersecurity measures and follow security best practices. The lawsuit also alleged there was an unnecessary delay in notifying the affected individuals and that Lamoille Health Partners was not compliant with the HIPAA Rules. The lawsuit claimed the plaintiff, Patricia Marshall, and the class faced an imminent and ongoing risk of identity theft and fraud due to their sensitive information being in the hands of cybercriminals.

Lamoille Health Partners has not admitted to any wrongdoing and disagrees with the claims; however, a settlement was proposed to bring the legal action to an end. Under the terms of the proposed settlement, a $540,000 fund will be created to cover claims from individuals who were affected by the breach. Class members can submit claims of up to $5,000 to cover unreimbursed, documented out-of-pocket expenses incurred as a result of the breach, including bank fees, credit expenses, travel expenses, costs of credit monitoring services, and unauthorized charges. In addition, all class members will be entitled to a pro-rata payment which will be distributed after attorneys’ fees and legal costs have been deducted and claims have been paid. The payment is anticipated to be around $50 per class member.

Important Dates:

  • Deadline for exclusion/objection: May 30, 2024
  • Deadline for submitting claims: June 20, 2024
  • Final approval hearing: September 30, 2024

The post Lamoille Health Partners Settles Class Action Data Breach Lawsuit for $540,000 appeared first on HIPAA Journal.

New Jersey Nursing Facility to Pay $100,000 CMP to Resolve HIPAA Right of Access Violation

The HHS’ Office for Civil Rights has announced another financial penalty has been imposed for a violation of the HIPAA Right of Access. Essex Residential Care, LLC, which does business as Hackensack Meridian Health, West Caldwell Care Center in New Jersey, has been ordered to pay a civil monetary penalty of $100,000 to resolve the alleged violation.

Hackensack Meridian Health operates skilled nursing facilities in New Jersey, including the West Caldwell Care Center. In May 2020, OCR received a complaint from the son of a mother who had received care at West Caldwell Care Center who alleged he had not been provided with a copy of her medical records within the 30 days allowed by the HIPAA Privacy Rule.

Son Not Provided with His Mother’s Records within 30 Days

The complainant was the personal representative of his mother and therefore should have been provided with a copy of his mother’s medical records. The complainant first asked for a copy of the records on April 19, 2020, via email, and on April 23, 2020, an administrator at West Caldwell Care Center advised him that the records could not be provided without a copy of a power of attorney, medical proxy or similar document executed by the mother, confirming that he was her personal representative.

The appropriate documentation was provided but West Caldwell Care Center still did not provide the requested records, which led to him filing a complaint with OCR. On October 15, 2020, OCR notified West Caldwell Care Center that an investigation had been opened as a result of the complaint and the correspondence included a data request pursuant to the investigation.

West Caldwell Care Center responded and acknowledged that the records had not been provided within the allowed 30 days and, in response to OCR’s investigation, sent the requested records in late November, which were received by the complainant on December 1, 2020, 161 days after the initial request was made.

West Caldwell Care Center Disagreed with OCR’s Determination

Most HIPAA Right of Access investigations are informally settled with OCR, a financial penalty is paid, and the covered entity agrees to adopt a corrective action plan which includes updates to its policies and procedures and training on HIPAA policies for staff members. In this case, West Caldwell Care Center’s attorney disagreed with OCR’s proposed resolution of the investigation. OCR then notified West Caldwell Care Center that the investigation had uncovered preliminary indications of non-compliance with the HIPAA Right of Access, and OCR provided West Caldwell Care Center with the opportunity to submit evidence of mitigating factors.

West Caldwell Care Center acknowledged that the complainant was not provided with the requested records, but the records were provided to another facility to which his mother had been transferred. West Caldwell Care Center also said that at the time of the initial request, there was ongoing litigation due to the non-payment of care costs. As another mitigating factor, West Caldwell Care Center said it was dealing with the COVID-19 pandemic, and that the complainant filed a complaint with OCR exactly 30 days after the request was made before West Caldwell Care Center’s response to the initial request was due. West Caldwell Care Center accepted that the matter should have been handled differently.

$100,000 Civil Monetary Penalty Imposed

OCR determined that West Caldwell Care Center failed to provide the requested records within the 30 days allowed by the HIPAA Privacy Rule and that the delay from June 23, 2020, to December 1, 2020, was a violation of the HIPAA Right of Access. The maximum civil monetary penalty was $206,080 based on the reasonable cause penalty tier (see: What are the penalties for HIPAA violations); however, per OCR’s reinterpretation of the language of the HITECH Act and its subsequent Notice of Enforcement Discretion, the penalty was capped at $100,000.

West Caldwell Care Center argued that a civil monetary penalty was not permitted because the violation was not due to wilful neglect and was timely corrected and that imposing a civil monetary penalty would be arbitrary and capricious and would violate the Administrative Procedure Act (APA). OCR disagreed that the violation was timely corrected and said the affirmative defense requirements were not met, and that the penalty was appropriate and reasonable given that the violation did not violate the APA and that the civil penalty amount was reasonable given the substantial delay providing the requested records.

West Caldwell Care Center said its staff believed they had responded in the allowed time frame by transferring the records to another facility; however, OCR’s view was that the records were not provided to the personal representative as required by HIPAA. West Caldwell Care Center was advised of its right to request a hearing with an administrative law judge; but on advice from its legal counsel, chose to waive that right.

“A patient’s timely access to health records is paramount for medical care. The Office for Civil Rights continues to receive complaints from individuals and personal representatives on behalf of individuals who do not receive timely access to their health records,” commented OCR Director Melanie Fontes Rainer. “OCR will continue to vigorously enforce this essential right to ensure compliance by health care facilities across the country.”

This is the fourth financial penalty imposed by OCR in 2024 to resolve alleged HIPAA violations and its 145th financial penalty to date. OCR has now fined 48 HIPAA-regulated entities for failing to provide patients or their personal representatives with timely access to the requested medical records that they are legally entitled to obtain.

The post New Jersey Nursing Facility to Pay $100,000 CMP to Resolve HIPAA Right of Access Violation appeared first on HIPAA Journal.

Utah Updates Breach Notification Law

Utah has updated its online data security and privacy laws with new definitions and new requirements for data breach notifications to the Utah Cyber Center. The amendments were signed into law by Utah Governor Spencer J. Cox on March 19, 2024, and updated the Utah Protection of Personal Information Act and the Utah Technology Governance Act.

The Utah Cyber Center was established by the Utah Technology Governance Act and coordinates efforts between State, Local, and Federal resources to bolster statewide security and help defend against future cyberattacks. The online data security and privacy amendments (S.B. 98) to the Technology Governance Act establish new definitions for a data breach reporting to the Utah Cyber Center. A data breach is defined as “the unauthorized access, acquisition, disclosure, loss of access, or destruction of (a) personal data affecting 500 or more individuals; or (b) data that compromises the security, confidentiality, availability, or integrity of the computer systems used or information maintained by the governmental entity.” Personal data is defined as any information that is linked to or can reasonably be linked to an identified individual or an identifiable individual.

The amended law also includes details of the types of information that government entities must provide when reporting data breaches to the Utah Cyber Center. These requirements include the date/time of the breach; date of breach discovery; number of people affected, data types involved, a short description of the breach; path/means of access; perpetrator of the breach (if known); the steps taken in response to the data breach; and any other specific information requested by the Utah Cyber Center. The Protection of Personal Information Act has been amended to state that documents submitted to the Attorney General or the Utah Cyber Center may be deemed confidential and classified as a protected record in certain circumstances.

The post Utah Updates Breach Notification Law appeared first on HIPAA Journal.