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ARTICLE · 14 FEBRUARY 2023

HHS OCR Brings Enforcement Against Banner Health For HIPAA Security Rule Violations

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On February 2, 2023, the US Department of Health and Human Services' (HHS) Office for Civil Rights (OCR) reached a settlement with Banner Health Affiliated Covered Entities...

United StatesTechnology

On February 2, 2023, the US Department of Health and Human Services' (HHS) Office for Civil Rights (OCR) reached a settlement with Banner Health Affiliated Covered Entities ("Banner Health") for a 2016 data breach that involved hackers' unauthorized access to the electronic protected health information (e-PHI) of the Phoenix, Arizona-based health system's 2.81 million customers. Banner Health has agreed to pay $1.25 million under the terms of the settlement.

This is OCR's first seven-figure monetary settlement in an alleged HIPAA violation since January 2021 and the agency's second financial penalty in 2023 addressing alleged HIPAA violations. This decision indicates that OCR is serious about investigating reported data breaches and "looking beneath the hood" to assess what really happened in a given situation. Covered entities and business associates should closely review their security programs and HIPAA compliance in light of this latest OCR settlement.

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