ED Coding & Reimbursement Alert - 2014 Issue 22
Patient Privacy: Your Associate's Mistakes Shouldn't Cost You Money
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Article Overview
This article explains how privacy incidents involving business associates and subcontractors can lead to private lawsuits and settlement costs even when federal regulators do not assign fault to the covered entity. It is aimed at healthcare compliance, privacy, and revenue cycle professionals who need to understand vendor risk, breach notification exposure, and the broader legal context surrounding HIPAA-related disclosures. The discussion focuses on state privacy law claims, class action risk, and the operational importance of vendor oversight and safeguards.
Why This Topic Matters
It highlights that HIPAA compliance alone may not eliminate financial or legal exposure when third-party vendors mishandle protected health information. Organizations that send PHI to vendors need to understand the potential for state-law claims, settlement costs, and the compliance implications of business associate and subcontractor oversight.
What You Will Learn
- How vendor-related privacy incidents can create liability beyond federal enforcement
- Why state privacy laws can matter in HIPAA-related breach cases
- How business associate and subcontractor relationships affect privacy risk
- What kinds of vendor oversight topics are relevant to reducing exposure
Who Should Read This
- Healthcare compliance professionals
- Privacy and security officers
- Revenue cycle leaders
- Healthcare attorneys
- Practice administrators
- Hospital risk management staff
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