Ever wonder what happens to firms who fail to comply with those federal privacy regulations? Well, violators can be assessed with very hefty fines; while minimal penalties start at just $1,000 per violation, the numbers can add up easily and quickly. The $1,000 fine is assessed when investigators determine reasonable cause, but the penalties jump to the tune of $10,000 per violation for incidents determined to be resulting from “willful neglect”. While the cap on reasonable cause violations is at $100,000 per calendar year, willful neglect penalties cap at $250,000 per calendar year. Knowingly disclosing information about a patient’s health record can cost your firm $50,000 per incident along with the possibility of a one-year jail term. Tougher violations exist for more egregious violations, going from $100,000 to $250,000 per incident and up to 10 years in jail.
Don’t believe the penalties will be enforced? Just as Cignet Health of Maryland. In February 2011, Cignet was assessed a whopping $4.3 Million penalty for their HIPPA Privacy violations. Just days later, Mass General (of Massachusetts) was assessed a $1 Million fine following an incident where an employee left health records of 192 employees on a subway. Penalties like those can quickly force major cutbacks, layoffs or closure, along with destroying confidence of your patients.
When it comes to shredding documents, truly an ounce of prevention is worth a pound of cure.