HHS Issues $100,000 Fine to Small Phoenix Practice, Warning to Physicians

The Department of Health and Human Services' Office for Civil Rights has issued a warning to physicians: You will be held accountable for HIPAA violations regardless of your practice size, according to an American Medical News report.

On April 17, Phoenix Cardiac Surgery, a five-physician practice in Phoenix and Prescott, Ariz., became the first small practice to enter a resolution agreement that included a civil money penalty over charges it violated HIPAA. The practice will pay $100,000 and take corrective actions.

HHS' investigation found that the practice failed to implement adequate policies and procedures to protect patient information; failed to document that it trained employees on HIPAA Privacy and Security Rules; failed to identify a security official and conduct a risk analysis; and failed to obtain business associate agreements for its email and scheduling services.

This was the first resolution agreement with a small practice since the Privacy and Security Rules were granted greater enforcement powers in 2009.

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