Mount Sinai-St. Luke’s Pays $387K HIPAA Settlement for Privacy Violation

Monica McCormack
Published: May 25, 2017•Last Updated: July 15, 2024•Read Time: 2 min

Summary

Failure to remediate revealed vulnerabilities calls for corrective action. After a staff member faxed a patient’s highly sensitive PHI to the employer instead of the requested PO box, St. Luke’s-Roosevelt paid a $387,200 settlement. OCR’s investigation revealed a history of non-compliance, including a similar breach nine months earlier. With nine settlements in 2017 totaling $17.1 million, enforcement is becoming routine, and covered entities and business associates are responsible for identifying and implementing safeguards.

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The Department of Health and Human Services (HHS) Office for Civil Rights (OCR) has levied a $387,200 HIPAA settlement against St. Luke’s-Roosevelt Hospital Center for unlawful disclosure of patient data. HIPAA settlement

OCR was alerted to the breach in September of 2014. A patient at the Institute for Advanced Medicine (formerly the Spencer Cox Center for Health) reported that a staff member disclosed the patient’s protected health information (PHI) to the patient’s employer.

PHI is any personally identifiable information collected during patient care, including name, date of birth, Social Security number, financial information, phone number, address, and etc.

The disclosure involved highly sensitive and private data including information about the patient’s HIV status, history of medical care, sexually transmitted diseases, medications, sexual orientation, mental health diagnosis, and history of physical abuse. The staff member responsible for the breach faxed the PHI to the patient’s employer, rather than the proper PO box address as requested.

OCR’s HIPAA investigation revealed a history of non-compliance. A similar breach occurred just nine months prior to the reported incident, and St. Luke’s did nothing to address gaps in its compliance program. Once such vulnerabilities have been revealed, it’s the organization’s role to implement corrective actions to prevent future incidents.

“Individuals cannot trust in a healthcare system that does not appropriately safeguard their most sensitive PHI,” said OCR Director, Roger Severino. “Covered entities and business associates have the responsibility under HIPAA to both identify and actually implement these safeguards. In exercising its enforcement authority, OCR takes into consideration aggravating factors such as the nature and extent of the harm caused by failure to comply with HIPAA requirements.”

This is the ninth HIPAA settlement that OCR has reached in 2017, for a total of $17.1 million in HIPAA fines since January alone. Compare that number to $6.2 million in 2015 and $23.5 million in 2016. OCR investigations and HIPAA settlements are becoming a routine part of HIPAA enforcement. Are you doing everything you can to protect your practice with HIPAA compliance?

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About the Author

Director of Content Strategy

Monica McCormack has 5 years of experience as a compliance copywriter and editor. She is well-versed in a diverse range of compliance topics including HIPAA, OSHA, and state privacy laws. She specializes in simplifying regulatory compliance, making it easy to understand for a general audience.

Monica has a background in marketing and is responsible for creating all forms of written content, including articles, resources, press releases, and case studies. She also works with Compliancy Group's association partners to deliver educational content for members.