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    Home » Stanford, contractor to pay $4.1 million over privacy

    Stanford, contractor to pay $4.1 million over privacy

    May 1, 2014
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    Hospital Management

    Stanford, contractor to pay $4.1 million over privacy

    It will take $4.1 million for Stanford (CA) Hospital & Clinics and one of its former contractors to settle a class action lawsuit claiming the hospital violated state privacy law by allowing the protected health information (PHI) of 20,000 emergency department patients to be posted online for nearly a year. The PHI was found on a website that helped students answer homework questions.

    Shana Springer sued the hospital and Los Angeles-based Multi-Specialty Collection Services in 2011 and said her information was part of the information found on the site. She was one of the patients in the hospital’s emergency department from March 1, 2009, to Aug. 31, 2009, whose PHI was on the public website for almost a year.

    Stanford acknowledged the breach soon after it was reported publicly but blamed Multi-Specialty Collection Services. Hospital officials claimed they sent the medical information to the collection and billing services firm in an encrypted format but the contractor then created a spreadsheet that was sent to the website for help in creating a graph.

    In a statement released after the settlement, Stanford says the Multi-Specialty Collection Services and Corcino & Associates, the owner of the website, will pay $3.3 million of the $4.125 million settlement. The hospital will pay the rest. In addition, the hospital will fund a two-year program that trains medical professionals to protect patient records.

    "Patient privacy and data security continues to be an utmost priority at Stanford Hospital & Clinics," the statement said. "We are pleased to have put this case behind us and look forward to helping outside vendors better understand and comply with new patient privacy regulations."

    As part of the settlement, each of the affected patients will receive a little more than $100.

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    Healthcare Risk Management

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    Healthcare Risk Management 2014-05-01
    May 1, 2014

    Table Of Contents

    Health system sued by doctor who was fired for Facebook post

    Buttocks photo, patient initials lead to doctor’s dismissal

    CMO’s statement could complicate hospital’s defense

    State laws can affect your whistleblower response

    Dig into social media as defense to dismissal lawsuits

    Huddles getting popular, but use them correctly

    Interventions reduce serious events 83% at one hospital

    Stanford, contractor to pay $4.1 million over privacy

    HHS releases security risk assessment tool

    HHS final CLIA rule allows reports to patients

    Consumer Reports ranks safest hospitals

    CDC wants every hospital to use an antibiotic checklist, improve safety

    Going too far with HIPAA compliance threatens care provided to patients

    Policies should address difficult HIPAA scenarios

    Tactical approach takes advantage of confusion

    Report finds HIPAA hindering data usage

    HHS considering change for background checks

    Health system uncovers inside data breach

    HHS to survey 1,200 — Audits might follow

    First ever settlement with local government

    Failure to diagnose premature labor leads to impairments for infant, $42 million verdict

    Misdiagnosis of flu instead of pneumonia results in death for 10-year-old girl

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