Business Associate Fined $2.3 Million for Breach of 6 Million Records and Multiple HIPAA Failures

HIPAA Journal

Steve Alder

The Department of Health and Human Services’ Office for Civil Rights has announced its 10th HIPAA violation fine of 2020. This is the 7th financial penalty to resolve HIPAA violations that has been announced in as many days.

The latest financial penalty is the largest to be imposed in 2020 at $2.3 million and resolves a case involving 5 potential violations of the HIPAA Rules, including a breach of the electronic protected health information (ePHI) of 6,121,158 individuals.

CHSPSC LLC is Tennessee-based management company that provides services to many subsidiary hospital operator companies and other affiliates of Community Health Systems, including legal, compliance, accounting, operations, human resources, IT, and health information management services. The provision of those services requires access to ePHI, so CHSPSC is classed as a business associate and is required to comply with the HIPAA Security Rule.

On April 10, 2014, CHSPSC suffered a...

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