Breach Investigation Causes Provider To Close Its Doors

February 17, 2014 – In The News
Medical Practice Compliance Alert

Michael Kline and Elizabeth Litten were quoted in the Medical Practice Compliance Alert article “Breach Investigation Causes Provider To Close Its Doors.” While the full text can be found in the February 17, 2014, Medical Practice Compliance Alert, a synopsis is noted below.

A provider under investigation by the Federal Trade Commission (FTC) following a data breach has elected to shut down rather than continue to defend itself.

The FTC has expanded its reach into health care security before, imposing corrective action plans, but this was a bigger case because the provider was fighting the FTC’s authority, says Elizabeth Litten. “There’s some validity to the argument that health care protection should be in the jurisdiction of HHS,” she explains.

The threat of FTC action in addition to an HHS investigation of a data breach makes reducing the risk of one even more important. The FTC appears to be targeting the health care industry, and may even be competing with the HHS, says Michael Kline.

“Even if you’re as clean as the driven snow and trying to comply, if something bad happens, you get investigated, your name is besmirched, and you incur costs for attorneys. It can ruin your business,” cautions Kline.