Physician’s offices and small clinics are recent targets of patient data theft creating legal obligation to notify patents of the crime under the new federal HITECH Act as well as providing concurrent notice to HHS Office of Civil Rights (OCR). A recent article in HeathLeaders Media highlighted this growing problem.

According to OCR, 11 private practices, affecting a total of 54,000+ patient records have been reported to them since this legislation to protect patient privacy went into effect in September 2009.

The risk to affected patients is medical identity theft by criminals wanting to use their information to obtain illegal prescriptions and medical services. The risk to private practices is compliance with regulations, state and federal fines for privacy violations, class action litigation, and losing patients who decide to take their business elsewhere.
Unfortunately, a breach of patient data is common. A misdirected fax, stolen laptop, or missing PDA containing patient data is all it takes.

When you suspect you have a breach of patient data, get help. A recent survey by Ponemon Institute, a research organization that studies data breach incidents found that 44% of the organizations they surveyed engaged experts. Ponemon also found those that engaged experts experience 26% lower cost and more positive outcomes including compliance with regulations, minimizing the risk of fines and class action litigation, and protecting patients from medical identity theft.

ID Experts has helped private practices and clinics, large and small effectively mitigate the risks of a data breach. If you think you have an issue, call ID Experts hot line at 866-726-4271 to discuss the case.

A recently published article in Healthcare IT News  highlights aspects of the Health Information Technology for Economic and Clinical Health (HITECH) Act that may have escaped your attention.

Titled “Three things you may not know about the HITECH Act…but should“, the article hones in on aspects of the rulemaking from the US Department of Health and Human Services that healthcare organizations must follow in determining whether a privacy breach incident meets the requirements to notification.

HITECH is known primarily for the manner in which it motivates healthcare providers to implement electronic health records (EHR) systems. But as more and more of our medical information is going online, the Act also wisely enhanced the privacy and security provisions that are required of healthcare providers and added penalties and enforcement mechanisms for the breach of private healthcare information.

One of the three things you may not know, per this article, is that when your organization experiences a potential privacy incident, that you are required to carry out a “risk assessment” in order to determine the nature of the protected health information (PHI) that was disclosed, and whether it poses a risk of harm to the affected patients.Based on the results of this risk assessment, your organization may or may not be obligated to notify the affected individuals, along with HHS and the media. So this assessment process is very important.

Unfortunately, the risk assessment process is not at as well defined or straightforward as might be hoped. And this gets to one of the 2nd items that you may not know about in HITECH. In carrying out a risk assessment, the goal is to determine whether there is a risk of financial, reputational or other harm to the patients affected. And in this process, not all PHI is created equally, and in fact, you must consider the nature of the information disclosed in a manner that is situationally aware.

For instance, disclosure of a persons name and their medical procedure may not be cause for any risk of harm if the procedure was having a bunion removed. However, if the procedure was for the diagnosis of AIDS, disclosure of this information could result in substantial harm. As a result, it is not just the data types that need to be considered, but the nature of the data and the environment of their release. Not at all straightforward.

And then the 3rd thing that you may not know about HITECH from this article is that its data breach notification provisions don’t “preempt” those of each of the states. In fact, if your organization experiences a data breach, you need to assess the requirement to notify and how to notify not just using not just the requirements of HITECH, but also the requirements as stated in state data breach notification laws.

For example, you may find that based on your risk assessment, that HITECH requires notification. But you may also find that in some states, the timeframe for notification is shorter than the 60 days from discovery of incident that is required by HITECH. In other words, you must look at your breach notification requirements both under HITECH as well as under each state law where you have patients that were affected by the incident.

Needless to say, this is a complex process and you would be well advised to document your processes and decisions very carefully. You really don’t want to be the target of one of those $1.5MM fines that are beginning to surface.

The Blue Cross Blue Shield Association recently released a report that highlights a 7-to-1 savings for every dollar spent on anti-fraud activities. In their announcement they note that this represents a 47% increase in fraud savings in 2009 compared to 2008.

With growing evidence of the expansion in medical identity theft crimes, the focus of private insurers on fraud reduction is most welcome. There is a direct correlation between eliminating fraud and the reduction in medical identity theft. Unfortunately, while their progress appears to be solid, there remains the fact that the incidence of medical identity theft is on the rise.

In a recent Wall Street Journal article, it was noted that”

“‘Medical identity theft is the fast-growing form of identity theft,’ says Jim Quiggle, spokesman for the Coalition Against Insurance Fraud. He says individuals often don’t know that they have been victimized until the thief has distorted their medical records and run up medical bills.”

While statistics on actual number of victims and level of financial harm in medical identity theft are hard to come by, the fact that the incidence of these events is increasing is not good news for patients.

It is terrific to see that a recent discussion forum of healthcare CIOs concluded that “human foibles” are likely to continue to contribute to data breach incidents in healthcare.The CIOs were on an e-health panel at the MIT Sloan CIO Symposium in Cambridge, Mass.

As noted by InformationWeek Healthcare:

“While advancements in security technology better protects patient data, and regulations like HIPAA aim to set rules for information security and privacy, some breaches boil down to humans making mistakes. ‘Everything in our environment is encrypted,’ said William Fandrich, senior VP and CIO at Blue Cross Blue Shield of Massachusetts. However, despite solid attempts at security protection and other precautions, healthcare organizations need to emphasize–and continue to remind–employees about simple things they need to do to prevent patient privacy breaches.”

We continue to find that organizations turn primarily to technology to solve the data breach “problem”. This is exemplified by the perspective that once all data is encrypted, that data breach risks will be eliminated. It is great to see the thoughtfulness of healthcare CIOs at this conference where there is a prominent recognition that human error (and of course, human fraud) is a weak link for data breach risks despite the best of technologies applied.

Healthcare organizations that fall under the definition of HIPAA covered entities should be very aware of their obligations under the data breach provisions of the HITECH Act. The reason being that there are now very substantial penalties for disregarding the security and privacy regulations, for lax detection of data breach incidents and for failing to notify affected individuals of an incident within a specified period of time.

One of the keys to meeting the notification requirement is completing and documenting a data breach incident “risk assessment” for each and every incident that is detected. The “rules” for carrying out this mandated assessment are specified by the department of Health and Human Services (HHS) in their rulemaking. This webinar will assist information security, compliance and privacy officers and professionals at hospitals, health insurers, and other covered entities in understanding what they need to do and how to go about doing it, when faced with a potential data breach incident.

A description of the webinar follows.

The HITECH Act requires HIPAA-covered entities to carry out a careful risk assessment, including an evaluation of potential harm, for every potential data breach incident. This risk assessment will assist organizations in deciding whether they are obligated to then notify affected individuals, the Department of Health and Human Services (HHS) and the media about data breach incidents.

Kirk Nahra, CIPP, a partner at the premier healthcare law firm Wiley Rein LLP, and Rick Kam, president and founder of ID Experts, will review and discuss the HHS rules for completing these mandated data breach incident risk assessments in order to ensure compliance and utilize evolving best practices.

Learn about considerations for HIPAA-covered entities in carrying out mandated HITECH data security breach incident risk assessments. To enroll to attend the webinar, click here.

Electronic Health Records (EHR) hold the promise of substantial benefits to patients. When shared among providers, they will assure that wherever you seek medical services that your doctor will have access to complete and accurate information on your medical history.

The passage of the Health Information Technology for Economic and Clinical Health (HITECH) Act earmarks over $19 billion in funds as incentives for healthcare providers to adopt EHR technologies. As these funds flow, the amount of medical data will grow exponentially into the petabytes over the next four years.

As recent article titled “As health data goes digital, security risks grow” published in Computerworld and Business Week highlights a significant issue with this trend, the fact that the security of your medical records is far from assured. It concludes that:

“Over the next four years, the amount of personal medical information online will increase exponentially, opening up new avenues for hackers to expose personal data that, unlike financial information, can result in a permanent violation of privacy.”

With the focus of healthcare providers being on securing HITECH stimulus funds for the implementation of EHR systems, there is the risk that the security systems and architecture for these systems, especially in areas of interchange with other entities, may increase risks of exposure of protected health information (PHI) of patients.

Dr. Taher Elgamal, the individual that led the development of  secure sockets layer (SSL network encryption) as the chief scientist at Netscape, and is now the chief security officer at Axway, highlights that the current solution path for this issue, encryption of the PHI data, isn’t a silver bullet for assuring patient privacy.

“The fact that you did encryption doesn’t mean you’ve protected medical information, because access control is the real issue,” Elgamal said. “New cybercriminals do not do what the old cybercriminals did. They realize you’ll be encrypting the data and instead access the application and steal access rights.”

The implications of this on healthcare providers is significant. The financial and patient benefit motivation associates with implementing EHR systems must be balanced by the security and privacy requirements that now have public and financial implications as well for non-compliance.  It isn’t clear to me that most covered entities are appropriately balancing both sides of this equation.

This week, the Connecticut Attorney General, Richard Blumenthal, sued Health Net of Connecticut for a data breach and their subsequent handling of the incident. As he notes, this lawsuit is historic, in that it is the very first enforcement action under HIPAA since the law was extended and enhanced with the HITECH (Healthcare Information Technology for Economic and Clinical Health) Act.

“Sadly, this lawsuit is historic — involving an unparalleled health care privacy breach and an unprecedented state enforcement of HIPAA,” Blumenthal said. “Protected private medical records and financial information on almost a half million Health Net enrollees in Connecticut were exposed for at least six months — most likely by thieves — before Health Net notified appropriate authorities and consumers. These missing medical records included some of the most personal, intimate patient information — exposing individuals to grave embarrassment and emotional distress, as well as financial harm and identity theft. The staggering scope of the data loss, and deliberate delay in disclosure, are legally actionable and ethically unacceptable. Even more alarming than the breach, Health Net downplayed and dismissed the danger to patients and consumers. Failing to protect patient privacy blatantly violates federal law and Health Net’s public trust. We are seeking a preliminary order to protect patients and consumers, and will fight for civil penalties.”

It is likely this while this is a first, that it is the beginning of a new era for healthcare organizations and the expectation that they will take the privacy obligations of their patients seriously.  While unfortunate, this situation illustrates that some healthcare organizations require stronger motivation to both protect patient information as well as to follow good sense and legal requirements to promptly notify individuals if there has been a breach of their information that may put them at risk.

It is unfortunate that while we have very clear rights to access and correct our financial records, we don’t have similar rights when it comes to our medical records. While this hasn’t been a high level concern for patients up until now, because the majority of fraud thus far has mostly impacted the healthcare insurers, the implications for all of us are getting more and more serious.

This segment describes a situation where a young woman’s social security number at the Red Cross became associated with a patient who visited a clinic in another state, years ago, who had AIDS. It illustrates the difficulty that one has in correcting such issues with our medical identities.