Potential HIPAA Violation Leads to $750,000 Settlement

The Attorney General for the Commonwealth of Massachusetts reached an agreement with South Shore Hospital over claims the hospital failed to protect confidential health information for hundreds of thousands of consumers. The Attorney General filed the lawsuit under both state information security laws and the federal Health Insurance Portability and Accountability Act (HIPAA).

The problem arose when the hospital shipped three boxes containing more than 400 unencrypted back-up tapes to an off-site vendor. The hospital had contracted with the vendor to erase the tapes and resell them. The tapes contained significant amounts of confidential information such as patients’ names, Social Security numbers, bank account numbers and medical diagnoses. Only one of the three boxes arrived at its intended destination.

To learn more about the settlement, please continue reading at Littler's Healthcare Employment Counsel.

Information contained in this publication is intended for informational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.