HITECH now specifically requires the business associate to notify their partner so that... - 0 views
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The total impact to the institution is difficult to quantify. Obviously no organization wants the negative press. It's the kind of thing that loses patients and makes the institution less appealing when trying to attract physicians.
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Under the breach notification requirements of the HITECH Act (Title XIII of the American Recovery and Reinvestment Act), lost or stolen unencrypted records such as these requires notification to Health and Human Services for the public posting of the institution to HHS' "wall of shame," or public list of breaches involving more than 500 individuals. If you go to the HHS website right now, you'll see this incident listed there -- along with an ever-increasing laundry list of other institutions in the same boat.
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This very public example of HITECH in action underscores just one of the many ways that the law has altered the way that healthcare does business. While the full impact of the law won't be seen for quite some time to come, we're starting to see some radical changes in the way that hospitals approach security and compliance.
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Just a few weeks ago, Lincoln Medical and Mental Health Center learned a hard lesson. If you didn't see the news reports, the N.Y.-based healthcare provider notified over 130,000 individuals that their records -- including diagnostic information, Social Security numbers, dates of birth, and other information of use to identity thieves -- was potentially lost."