Doctor Admits Criminal HIPAA Scheme for Wrongful Disclosure of Patient PHI

A former physician with medical practices in New Jersey, New York, and Florida admitted wrongfully disclosing patients’ protected personal health information. Frank Alario, 65, of Delray Beach, Florida, pleaded guilty to conspiring to wrongfully disclose patients’ individually identifiable health information to pharmaceutical sales representative Keith Ritson in violation of the criminal provisions of the Health Insurance Portability and Accountability Act (HIPAA). As an outside pharmaceutical sales representative not associated with Alario’s medical practices, Ritson was not permitted to access and obtain the individually identifiable health information and protected health information of Alario’s patients. As part of the scheme, Alario permitted Ritson to have significant access to his office, medical files, and patient information. Alario allowed Ritson to be present in the office both during and outside normal business hours and to have access to areas of the office restricted to staff, including areas with patient files and office computers.

Alario permitted Ritson to look up patients’ information in files and on office computers to determine if patients had insurance that covered the compound medications. Ritson then would earmark files in advance so that Alario knew to whom to prescribe the medications. Alario also brought Ritson into patient exam rooms during appointments and gave patients the impression that Ritson was employed by or affiliated with the medical practice, which facilitated and caused the disclosure of confidential health information to Ritson. Ritson would use patients’ confidential information to fill out prescription forms that Alario would authorize, and then Ritson received commissions on those prescriptions.

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