The Health Insurance Portability and Accountability Act, more commonly abbreviated as HIPAA, is a comprehensive federal law that sets strict standards for safeguarding protected health information (PHI). While HIPAA primarily applies to healthcare providers, health plans, and clearinghouses, law firms that handle healthcare-related cases or have access to PHI are also subject to its regulations. HIPAA violations can have demonstrably severe consequences for any company.
The most prominent example of a data breach due to HIPAA violations was Anthem, Inc. In 2015, due to a failure to conduct an enterprise-wide risk analysis alongside poor identification and responses to cyber security incidents, Anthem compromised the personal health information of approximately 78.8 million people. Due to the company's failure to comply with HIPAA regulations, Anthem paid the breaches victims in a class-action lawsuit that cost them $115 million in 2018.
Failure to comply with HIPAA can result in severe penalties, ranging from fines to criminal charges. As law firms increasingly handle cases involving sensitive health information, they must be aware of common HIPAA violations and take proactive measures to avoid them. In this article, we will explore some of the most common HIPAA violations encountered by law firms and provide practical strategies to ensure compliance and protect PHI.
Unauthorized Access to PHI
One of the most prevalent HIPAA violations involves unauthorized access to PHI. This occurs when individuals within the law firm access or disclose PHI without a valid reason or authorization. It may happen accidentally or intentionally, but regardless of the cause, unauthorized access is a serious violation.
To avoid unauthorized access to PHI, law firms should implement strict access controls and train their employees on the importance of maintaining the confidentiality of patient information. Role-based access should be implemented, ensuring that employees only have access to the PHI necessary to perform their job functions. Additionally, regular audits and monitoring of access logs can help identify any suspicious activities and prevent potential violations.
Lack of Employee Training and Awareness
A common reason for HIPAA violations is the lack of proper training and awareness among employees regarding the importance of safeguarding PHI. Employees may inadvertently mishandle or disclose PHI due to ignorance of HIPAA regulations and their legal obligations.
To mitigate this risk, law firms should conduct regular and comprehensive HIPAA training sessions for all employees, including attorneys, paralegals, and support staff. Training should cover the basics of HIPAA, the firm's policies and procedures, and the consequences of non-compliance. Employees should also be educated on the specific procedures to follow when handling PHI and the importance of reporting any potential security breaches.
Insecure Storage and Transmission of PHI
Improper storage and transmission of PHI are significant HIPAA violations that can lead to data breaches. Storing sensitive information on unencrypted devices, using public email services for communication, or sending PHI via unsecured channels are all examples of insecure practices.
Law firms must implement encryption and secure storage solutions for any device or platform that stores or transmits PHI. Encrypted email services and secure file-sharing platforms should be used to ensure that PHI remains protected during communication with clients, other legal entities, and external parties involved in the case.
Inadequate Business Associate Agreements
Law firms often collaborate with third-party service providers, such as IT vendors, document management companies, or transcription services, who may have access to PHI. Failure to establish proper Business Associate Agreements (BAAs) with these entities is a common HIPAA violation.
To avoid this violation, law firms should draft comprehensive BAAs that clearly outline the responsibilities and obligations of business associates regarding PHI protection. BAAs should include provisions for safeguarding PHI, reporting breaches, and detailing the steps to be taken in case of non-compliance. Regular monitoring and review of BAAs are essential to ensure that all parties are adhering to the agreed-upon terms.
Improper Disposal of PHI
Improper disposal of PHI is another common HIPAA violation that law firms must be wary of. Discarding physical documents or electronic devices containing PHI without proper shredding or data erasure can lead to unauthorized access.
Law firms should have clear policies and procedures in place for the secure disposal of PHI. This may involve shredding paper documents or ensuring that electronic devices are wiped clean using data destruction software. Employees must be educated on the proper disposal methods and strictly adhere to the firm's policies to prevent potential breaches.
Insufficient Risk Assessment and Mitigation
Failure to conduct regular risk assessments and address potential vulnerabilities is a grave HIPAA violation. Risk assessments help identify weak points in the firm's security infrastructure and potential areas of exposure to PHI breaches.
Law firms should conduct comprehensive risk assessments periodically to identify and mitigate potential risks related to PHI. Based on the assessment results, appropriate security measures and protocols should be implemented or updated to address any identified vulnerabilities effectively.
Bottom Line
HIPAA compliance is crucial for law firms that handle healthcare-related cases or have access to PHI. The consequences of HIPAA violations can be severe and may damage a law firm's reputation and financial stability. To avoid common HIPAA violations, law firms must prioritize employee training and awareness, implement strict access controls, and establish comprehensive Business Associate Agreements. In addition, secure storage and transmission of PHI, proper disposal methods, and regular risk assessments are essential components of a robust HIPAA compliance strategy.
By being proactive in addressing potential vulnerabilities and adhering to HIPAA regulations, law firms can protect sensitive health information, maintain trust with their clients, and ensure they are fully compliant with the law. Prioritizing HIPAA compliance not only safeguards the firm from penalties but also upholds the fundamental principles of ethical legal practice and data protection.
