Last week, South Dakota moved closer to implementing a data breach notification law, while Colorado legislators introduced a new bill requiring “reasonable security procedures,” imposing data disposal rules and shortening the time frame in which to alert authorities regarding a

The Department of Health and Human Services and its Office of Civil Rights (OCR) are capping off a very active 2016. In the last 6 months, the OCR has released a new audit protocol, announced new rounds of HIPAA audits, and stepped up enforcement. The flurry of activity comes after a prolonged period of anticipation in which Covered Entities and Business Associates were working to ensure that their data protection practices comply  with the new set of HIPAA Omnibus rules.  The OCR has made clear that it is not focused merely on large institutions or hospital systems.  In August, the OCR announced that breaches affecting fewer than 500 individuals will be subject to investigation by its regional offices. Thus, even entities with small incidents or small amounts of protected health information (PHI), such as employee health plans, could see a higher rate of enforcement and a higher possibility of major fines if they fail to comply with HIPAA.  Also within the OCR’s sights are Business Associates, as the Omnibus rule empowered the OCR to directly investigate and enforce Business Associates’ compliance with HIPAA’s requirements that the Omnibus rule extended to these entities.

On June 12, 2016, the HHS Office of Civil Rights (OCR) released guidance, entitled “FACT SHEET: Ransomware and HIPAA,” in response to the rising number of ransomware attacks perpetrated against healthcare entities. The guidance addresses Health Insurance Portability and Accountability Act (HIPAA) issues that may arise when medical records containing Protected Health Information (PHI) are compromised or stolen during a ransomware attack. OCR’s view is that compliance with HIPAA’s information security requirements assists healthcare entities in preventing and recovering from ransomware attacks.

On February 8, 2016, the U.S. Food and Drug Administration (FDA) issued a Product Problem Report concerning the following device: Merge Hemo Programmable Diagnostic Computer, manufactured by Merge Healthcare. The Merge Hemo device monitors, measures and records physiological data from patients undergoing cardiac catheterization procedures and transfers this data to a monitoring station that runs on a personal computer.  This FDA report is the first identifying antimalware as the cause of a medical device failure.

Last week, the Hollywood Presbyterian Medical Center was able to successfully negotiate the release of a collection of system resources and data files that had been encrypted and held hostage by ransomware attackers. Ransomware is a peculiar type of malware that is not designed or intended to steal personal or confidential information. Rather, ransomware is built to exploit the inherent value assigned to data security and control, by taking it away from the user. It does this by combing for critical system files and potentially valuable user data (word documents, excel spreadsheets, pdf files, outlook messages, and the like).  As these target files are identified, a strong encryption algorithm is applied to prevent infected computer systems from properly functioning while inhibiting bewildered users from accessing their own files, unless and until the attackers are paid to provide the decryption key.

On January 15, 2016, the U.S. Food and Drug Administration (“FDA”) released draft guidance entitled, “Postmarket Management of Cybersecurity in Medical Devices,” outlining recommendations to medical device manufacturers for managing postmarket cybersecurity vulnerabilities for marketed medical devices.  The FDA stresses that an effective cybersecurity  risk management program should address potential cybersecurity risks throughout the product’s entire lifecycle.   The draft guidance addresses the shared concerns of the FDA, manufacturers, providers, and consumers about the risks to the safety and efficacy of medical devices and private patient data and the difficulties in detecting new cybersecurity threats.  The 2016 draft guidance builds on premarket approval cybersecurity risk management recommendations published by the FDA in its 2014 guidance.

The University of Washington Medicine (“UWM”) has agreed to settle charges that it violated the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) Security Rule for US$ 750,000, following a breach report first submitted by UWM on November 27, 2013. In addition to settlement, UWM has entered into a Resolution Agreement with the United States Department of Health and Human Services (“HHS”), Office for Civil Rights (“OCR”) and has entered into and agreed to comply with a Corrective Action Plan (“CAP”).