Physicians Should Learn from Steep Data Breach Settlement, Report Says

The federal government's settlement regarding the accidental exposure of more than 1 million patients' personal information should teach physicians that the government "takes security breaches seriously," according to an American Medical News report.

The theft of 57 external hard drives from a BlueCross BlueShield Tennessee office in 2009 left patient and physician information exposed, the report said. The government settlement will cost BlueCross BlueShield of Tennessee $1.5 million, and the insurance provider estimates that it has spent a total of $17 million attempting to notify customers and change data security practices. Physicians should learn from the incident, said Yarnell Beatty, director of legal and governmental affairs for the Tennessee Medical Association.

"It is critical for physicians to have policies and procedures in place to protect [personal health information] — and to update them as needed and follow them," said Mr. Beatty. "HIPAA privacy rules have been in effect long enough for the government to believe it can ramp up enforcement and penalties now."

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