An Example of A HIPAA Violation Lawsuit

Can a patient sue because a healthcare entity endured a HIPAA violation? Within HIPAA, there’s no private cause of action. Therefore, it’s not possible for a patient to take legal action and sue for a HIPAA violation. Even if the HIPAA laws were clearly violated, and the patient suffered as a direct result, they can’t seek damages. So if it's not possible to sue for a HIPAA violation, how is it possible for people to sue healthcare providers for exposing their Protected Health Information, or PHI?
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Does this mean someone can’t take legal action against a covered entity when it's clear they violated HIPAA? While HIPAA does not have a private cause of action, it’s possible for patients to take legal action against healthcare providers. They can obtain damages for violations of state laws. In some states, it’s possible to file a lawsuit against a HIPAA-covered entity if they can prove that the provider was negligent or there was a breach of an implied contract. For example, if a covered entity failed to protect medical records, a patient can claim that this was a breach of an implied contract. In such cases, a plaintiff needs to prove that damage or harm happened as a result of negligence or the theft of unsecured personal information. Let's take a look at an example.
A company we will call Lily Medical Center for the sake of this video is a 622-bed health system based in Montana. It operates six hospitals and more than 68 provider clinics in the state. In February 2022, the healthcare entity announced it was the victim of a cyberattack that involved patient data. Lily Medical Center first detected the breach in November 2021. Investigations confirmed hackers were in their systems for at least four days.
In January 2022, the healthcare entity learned the attackers accessed files containing patient information. The data included information like…Names… Addresses… Medical record numbers… Dates of birth… Telephone numbers… Email addresses… Insurance claim information… Dates of service… Treating/referring physician… Medical bill account number… and Health insurance information.
The healthcare entity soon learned that the breach affected more than 213,500 individuals. As a precaution, Logan Health offered complimentary credit monitoring services.
In the lawsuit filed against Lily Medical Center, plaintiffs alleged that the company failed to implement reasonable and appropriate cybersecurity measures. Lily Medical Center didn’t provide sufficient security awareness training to its workforce. The plaintiffs believe that if there was enough training, they could’ve avoided the whole breach. The lawsuit alleged the plaintiffs and class members have suffered damages due to the exposed PHI and PII including.
Lily Medical Center chose to settle the lawsuit and agreed to create a $4.3 million fund to cover claims. Under the terms of the settlement, affected individuals can submit claims and receive a maximum of $25,000 to reimburse out-of-pocket expenses that are reasonably traceable back to the data breach. Claims can also include lost time, up to a maximum of $125 per class member.
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It’s very easy for people evil people to pretend that family relations means a cordial thing you can still sue healthcare companies, especially when they’ve tried to downplay the violation by for example relative your relatives name Saint on those operations her papers