HHS OCR Settles HIPAA Investigation with Arizona Hospital System Following Cybersecurity Hacking

The US Department of Health and Human Services’ Office for Civil Rights (OCR) announced a settlement with Banner Health Affiliated Covered Entities, a nonprofit health system headquartered in Phoenix, Arizona, to resolve a data breach resulting from a hacking incident by a threat actor in 2016 which disclosed the protected health information of 2.81 million consumers.  The settlement is regarding the Health Insurance Portability and Accountability Act (HIPAA) Security Rule which works to help protect health information and data from cybersecurity attacks.  The potential violations specifically include: the lack of an analysis to determine risks and vulnerabilities to electronic protected health information across the organization, insufficient monitoring of its health information systems’ activity to protect against a cyber-attack, failure to implement an authentication process to safeguard its electronic protected health information, and failure to have security measures in place to protect electronic protected health information from unauthorized access when it was being transmitted electronically.  As a result, Banner Health paid $1,250,000 to OCR and agreed to implement a corrective action plan, which identifies steps Banner Health will take to resolve these potential violations of the HIPAA Security Rule and protect the security of electronic patient health information.

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