Center for Orthopaedic Specialists - Providence Medical Institute (PMI)

The U.S. Department of Health and Human Services (HHS), Office for Civil Rights (OCR) announced a $240,000 civil monetary penalty against Providence Medical Institute in Southern California, concerning potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Security Rule, following a ransomware attack breach report investigation by OCR. Ransomware and hacking are the primary cyber-threats in health care. There has been a 264% increase in large breaches reported to OCR involving ransomware attacks since 2018. “Failures to fully implement all of the HIPAA Security Rule requirements leaves HIPAA covered entities and business associates vulnerable to cyberattacks at the expense of the privacy and security of patients’ health information,” said OCR Director Melanie Fontes Rainer. “The health care sector needs to get serious about cybersecurity and complying with HIPAA. OCR will continue to stand up for patient privacy and work to ensure the security of health information of every person. On behalf of OCR, I urge all health care entities to always stay alert and take every precaution and steps to keep their systems safe from cyberattacks.” OCR enforces the HIPAA Privacy, Security, and Breach Notification Rules, which sets forth the requirements that covered entities (health plans, health care clearinghouses, and most health care providers), and business associates must follow to protect the privacy and security of protected health information. The HIPAA Security Rule establishes national standards to protect individuals' electronic personal health information that is created, received, used, or maintained by a covered entity. It also requires appropriate administrative, physical and technical safeguards to ensure the confidentiality, integrity, and security of electronic protected health information. The Civil Money Penalty resolves OCR’s investigation concerning Providence Medical Institute’s compliance with the HIPAA Security Rule. OCR initiated an investigation following the receipt of a breach report filed by Providence Medical Institute in April 2018, which reported that its systems were impacted by a series of ransomware attacks that affected the electronic protected health information (ePHI) of 85,000 individuals between February and March 2018. OCR’s investigation determined that servers containing ePHI were encrypted with ransomware three times. OCR found two potential violations of the HIPAA Security Rule, including failure to have a business associate agreement in place and failure to implement policies and procedures to allow only authorized persons or software programs access to ePHI. In March 2024, OCR issued a Notice of Proposed Determination seeking to impose a civil money penalty. Providence Medical Institute waived its right to a hearing and did not contest OCR’s findings. Accordingly, OCR imposed a civil money penalty of $240,000.