Resource:

Loss Scenerio: Lost iPad

Other

Challenge: Clinical Integration  

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DESCRIPTION OF EVENT
A nurse lost an iPad containing names and protected health information for 25,000 patients vaccinated against the flu. A class action was filed against the nurse’s employer, a hospital, alleging negligence and invasion of privacy. In addition, consistent with HITECH, an attorney general action was filed against the hospital for alleged violations of HIPAA, including failure to properly encrypt portable data and failure to provide timely notice to impacted individuals. Finally, the attorney general alleged violations of the state’s unfair trade practice law.

RESOLUTION
The hospital incurred more than $750,000 in expenses associated with notifying patients regarding the lost iPad, hiring a public relations firm, establishing a call center, providing monitoring and restoration services, and retaining independent counsel to assess notice and compliance obligations. In addition, following class certification and defense costs in the amount of $500,000, the hospital resolved the litigation for approximately $1 million. The hospital also paid $500,000 in monetary fines and penalties as a result of the HIPAA and unfair trade practice violations and was required to implement new encryption and training protocols.

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