New West Health Services d/b/a New West Medicare

OCR opened an investigation of the covered entity (CE), New West Health Services, dba New West Medicare, after it reported that an employee’s unencrypted laptop computer was stolen from a hotel meeting room. The types of electronic protected health information (ePHI) involved in the breach included demographic information, social security numbers, Medicare claim numbers, financial information, diagnoses, medical histories, and prescription information, and affected 28,209 individuals. The CE provided breach notification to HHS, affected individuals, and the media and provided individuals' with free credit monitoring and identity theft protection services. Following the breach, the CE improved safeguards by recalling all of its laptops to ensure they were encrypted, installing geo-location capabilities on all of its laptops, and installing remote wiping software on all of its company-issued BlackBerry devices. The CE also sanctioned the employee whose laptop was stolen, retrained its staff on HIPAA privacy and security requirements, and created a new data incident response plan. OCR obtained assurances that the CE implemented the corrective actions noted above. Due to financial considerations, the CE announced that it will cease all operations in 2017 after it fulfills its 2016 insurance plan requirements.