Skip to main content
 HHS.gov
 Search
 U.S. Department of Health & Human Services
  Search Close
 A-Z Index
 About HHS
Programs & Services
Grants & Contracts
Laws & Regulations
 Home > About > News > Orthopedic Clinic Pays $1.5 Million to Settle Systemic Noncompliance with HIPAA Rules
 Text Resize  
                                A
                                A
                                A
                            Print
                            Share
 Search News Releases
View 2016 - 1991 archive
 FOR IMMEDIATE RELEASESeptember 21, 2020Contact: HHS Press Office202-690-6343[email protected]Orthopedic Clinic Pays $1.5 Million to Settle Systemic Noncompliance with HIPAA RulesAthens Orthopedic Clinic PA ("Athens Orthopedic") has agreed to pay $1,500,000 to the Office for Civil Rights (OCR) at the U.S. Department of Health and Human Services (HHS) and to adopt a corrective action plan to settle potential violations of the Health Insurance Portability and Accountability Act (HIPAA) Privacy and Security Rules. Athens Orthopedic is located in Georgia and provides orthopedic services to approximately 138,000 patients annually.
On June 26, 2016, a journalist notified Athens Orthopedic that a database of their patient records may have been posted online for sale. On June 28, 2016, a hacker contacted Athens Orthopedic and demanded money in return for a complete copy of the database it stole. Athens Orthopedic subsequently determined that the hacker used a vendor's credentials on June 14, 2016, to access their electronic medical record system and exfiltrate patient health data. The hacker continued to access protected health information (PHI) for over a month until July 16, 2016.
On July 29, 2016, Athens Orthopedic filed a breach report informing OCR that 208,557 individuals were affected by this breach, and that the PHI disclosed included patients' names, dates of birth, social security numbers, medical procedures, test results, and health insurance information.
OCR's investigation discovered longstanding, systemic noncompliance with the HIPAA Privacy and Security Rules by Athens Orthopedic including failures to conduct a risk analysis, implement risk management and audit controls, maintain HIPAA policies and procedures, secure business associate agreements with multiple business associates, and provide HIPAA Privacy Rule training to workforce members.
"Hacking is the number one source of large health care data breaches. Health care providers that fail to follow the HIPAA Security Rule make their patients' health data a tempting target for hackers," said OCR Director Roger Severino.
In addition to the monetary settlement, Athens Orthopedic has agreed to a robust corrective action plan that includes two years of monitoring. The resolution agreement and corrective action plan may be found at https://www.hhs.gov/sites/default/files/athens-orthopedic-ra-cap.pdf*.
* People using assistive technology may not be able to fully access information in this file. For assistance, contact the HHS Office for Civil Rights at (800) 368-1019, TDD toll-free: (800) 537-7697, or by emailing [email protected].###Note: All HHS press releases, fact sheets and other news materials are available at https://www.hhs.gov/news.Like HHS on Facebook, follow HHS on Twitter @HHSgov, and sign up for HHS Email Updates.Last revised: September 21, 2020 Sign Up for News Release UpdatesEnter your email:
Email Subscribe to RSSReceive latest updates Related News ReleasesHHS Increases and Begins Distributing Over $24 Billion in Phase 3 COVID-19 Provider Relief Funding
  Trump Administration Announces New Half Billion Incentive Payment Distribution to Nursing Homes
  Secretary Azar Statement on Maternal Health Actions Related Blog PostsHHS Blog thumbnail  
  Spotlight on Naloxone Co-Prescribing
          HHS Blog thumbnail  
  Now is the time: Catch-up to Get Ahead on Childhood Immunizations
          HHS Blog thumbnail  
  Health Providers: Join the Telehealth Revolution
 Public Affairs Contacts
HHS Media InformationASPA Press ContactsHHS Agency Press Contacts
**View all**
 Connect With Us
 Sign Up for Email Updates To sign up for updates or to access your subscriber preferences, please enter your contact information below. Email
 HHS Headquarters U.S. Department of Health & Human Services
						200 Independence Avenue, S.W.
						Washington, D.C. 20201
						Toll Free Call Center: 1-877-696-6775​
 Contact HHS
                        Careers
                        HHS FAQs
                        Nondiscrimination Notice
 HHS Archive
                        Accessibility
                        Privacy Policy
                        Viewers & Players
 Budget/Performance
                        Guidance Portal 
                        Inspector General
                        EEO/No Fear Act
 FOIA
                        The White House
                        USA.gov


Back to *T*op