HIPAA Data Breach Costs Company Nearly $300,000 in DOJ False Claims Act Settlement
Highlights
HIPAA business associates that have government contracts can face FCA penalties in addition to sanctions under HIPAA
A web-hosting company paid $293,771 to settle FCA allegations that it failed to secure personal information
This settlement is confirmation that the DOJ will continue using the FCA to address HIPAA violations and substandard cybersecurity practices
On March 14, 2023, the U.S. Department of Justice (DOJ) announced the settlement of a case involving alleged violations of the False Claims Act (FCA) as a result of cybersecurity failures and breach of HIPAA-protected health information. Obtained under the Civil Cyber-Fraud Initiative, this settlement emphasizes that HIPAA business associates that have government contracts can face FCA penalties from federal law enforcement in addition to the monetary penalties pursued by the Office for Civil Rights, which enforces HIPAA.
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