Texas Health System Will Pay $2.4M to Settle Potential HIPAA Disclosure Violations

May 10, 2017
Memorial Hermann Health System (MHHS) has agreed to pay a $2.4 million settlement to the U.S. Department of Health and Human Services (HHS) and adopt a comprehensive corrective action plan stemming from potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule.

Memorial Hermann Health System (MHHS) has agreed to pay a $2.4 million settlement to the U.S. Department of Health and Human Services (HHS) and adopt a comprehensive corrective action plan stemming from potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule.

MHHS is a not-for-profit health system located in Southeast Texas, comprised of 16 hospitals and specialty services in the Greater Houston area.

According to a press release from HHS, the Office for Civil Rights (OCR) initiated a compliance review of MHHS based on multiple media reports suggesting that MHHS disclosed a patient’s protected health information (PHI) without an authorization.

“In September 2015, a patient at one of MHHS’s clinics presented an allegedly fraudulent identification card to office staff. The staff immediately alerted appropriate authorities of the incident, and the patient was arrested. This disclosure of PHI to law enforcement was permitted under the HIPAA Rules,” OCR officials wrote in the press release.

However, according to OCR, MHHS subsequently published a press release concerning the incident in which MHHS senior management approved the impermissible disclosure of the patient’s PHI by adding the patient’s name in the title of the press release. “In addition, MHHS failed to timely document the sanctioning of its workforce members for impermissibly disclosing the patient’s information,” OCR officials stated.

“Senior management should have known that disclosing a patient’s name on the title of a press release was a clear HIPAA Privacy violation that would induce a swift OCR response,” OCR Director Roger Severino said in a prepared statement. “This case reminds us that organizations can readily cooperate with law enforcement without violating HIPAA, but that they must nevertheless continue to protect patient privacy when making statements to the public and elsewhere.”

In addition to a $2.4 million monetary settlement, a corrective action plan requires MHHS to update its policies and procedures on safeguarding PHI from impermissible uses and disclosures and to train its workforce members. The corrective action plan also requires all MHHS facilities to attest to their understanding of permissible uses and disclosures of PHI, including disclosures to the media. The resolution agreement can be found here.

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