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Data Privacy + Cybersecurity Insider - September 2018 #4

The State of California is once again leading the way with trying to keep up with technology and protecting consumers. Senate Bill 327 requires Internet of Things (IoT) developers to implement “reasonable security features”...more

Congress Considering Legislation Aimed at Curbing Surprise Medical Bills

The United States Senate is currently considering bipartisan legislation that would establish statutory limits on the financial exposure of certain patients to so-called “surprise” medical bills....more

Years-Long Exposure of Sensitive Client Information Results in $200,000 Settlement with New York Attorney General

In late August, the Attorney General of the State of New York announced a $200,000 settlement with a New York-based non-profit organization that provides services to developmentally disabled individuals and their families...more

CMS Revises Hospital Inpatient Admission Order Documentation Requirements

On August 17, 2018, the Centers for Medicare & Medicaid Services (CMS) published its Hospital Inpatient Prospective Payment Systems final rule for Fiscal Year 2019 (Final Rule). The Final Rule contains a number of important...more

OIG Advisory Opinion Approves Surgical Device Warranty Program Intended to Reduce Readmissions

On September 17, 2018, the Office of Inspector General (OIG) of the Department of Health and Human Services published a favorable Advisory Opinion allowing a manufacturer of surgical devices and wound care products to offer a...more

Ninth Circuit Issues Long-Awaited Interpretation of Escobar Two-Part Test

In late August, the U.S. Court of Appeals for the Ninth Circuit issued a long-awaited decision in U.S. ex rel. Rose v. Stephens Institute that interprets key aspects of the implied false certification theory of False Claims...more

One-Two Punch: On Consecutive Days, DOJ Announces High Dollar Fraud and Abuse Settlements with Hospitals

The Department of Justice (DOJ) announced two significant False Claims Act (FCA) settlements in recent days that signal continued close government scrutiny of billing, coding and referral practices at hospitals....more

Missouri Hospital Diverts Patients, Shuts Down EHR due to Ransomware Attack

On July 9, 2018, Cass Regional Medical Center (CRMC) in Harrisonville, Missouri was hit with a ransomware attack that led to a complete shutdown of its electronic health record (EHR) and the diversion of trauma and stroke...more

Data Privacy + Cybersecurity Insider - June 2018 #4

Just weeks after Mexico’s central bank was targeted by hackers who stole $15 million, Chile’s biggest bank, Banco de Chile, announced on May 28, 2018, that it had been struck by a “virus” that affected its workstations,...more

DOJ Enters Into Largest-Ever Civil Settlement with Hospital for Drug Diversion

On May 16, 2018, the U.S. Attorney’s Office for the Southern District of Georgia announced that it had entered into the “largest hospital drug diversion civil penalty settlement in U.S. History” in the amount of $4.1 million...more

DOJ Intervenes in False Claims Act Case Against Insys Therapeutics

The Department of Justice (DOJ), recently intervened in a civil False Claims Act (FCA) case filed against Insys Therapeutics, Inc. (Insys) in the Central District of California that alleges FCA violations arising from the...more

Data Privacy + Cybersecurity Insider - May 2018 #1

Bezop Cryptocurrency Investors’ Personal Information Exposed - Kromtech Security has reported that the sensitive personal information of more than 25,000 investors of Bezop cryptocurrency was exposed when a MongoDB...more

DOJ Announces Criminal Conviction of Physician for HIPAA Violation

On April 30, 2018 a Massachusetts physician was convicted of a criminal violation of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), as well as one count of obstruction of a criminal health care...more

Data Privacy + Cybersecurity Insider - April 2018 #4

“Orangeworm” Targeting Health Care Industry - In what is being called a systematic targeting of large health care organizations, pharmaceutical companies, and IT companies and equipment manufacturers that service the...more

Supreme Court Orders Dismissal of Microsoft Case

As had been expected following the passage of the CLOUD Act by Congress last month, the U.S. Supreme Court remanded and ordered the dismissal of the pending United States v. Microsoft Corporation, Inc. case in a per curiam...more

Supreme Court Order Indicates Interest in Reviewing Campie, the False Claims Act Outlier of the Ninth Circuit

In an order issued on April 16, 2018, the U.S. Supreme Court invited the Solicitor General to file a brief “expressing the views of the United States” concerning the 2017 decision of the U.S. Court of Appeals for the Ninth...more

Data Privacy + Cybersecurity Insider - April 2018

On the heels of the ransomware that had the City of Atlanta scrambling last week, New York City Mayor Bill de Blasio announced the launch of “NYC Secure,” a free mobile app that will alert New York City residents of...more

Government and Microsoft In Agreement that Pending Case Mooted by CLOUD Act

On March 30, 2018, Solicitor General Noel J. Francisco filed a motion with the U.S. Supreme Court in United States v. Microsoft Corporation that seeks to vacate the judgment of the U.S. Court of Appeals for the Second Circuit...more

Government and Microsoft In Agreement that Pending Case Mooted by CLOUD Act

On March 30, 2018 Solicitor General Noel J. Francisco filed a motion with the U.S. Supreme Court in United States v. Microsoft Corporation that seeks to vacate the judgment of the U.S. Court of Appeals for the Second Circuit...more

State Enforcement Actions Demonstrate Continued Scrutiny of Health Care Fraud

A series of criminal and civil enforcement actions announced in recent weeks demonstrate the continued attention that state regulators throughout the Northeast are placing on health care fraud. ...more

Data Privacy + Cybersecurity Insider - March 2018 #5

Power Company Fined for Contractor Copying Data to its Own Insecure Network - Vendor management continues to be a problem for all industries, but some are scarier than others. The North American Electric Reliability Corp....more

Congress Enacts CLOUD Act within Omnibus Spending Bill to Address Overseas Storage of Electronic Data, Potentially Mooting Supreme...

On March 23, 2018, the President signed into law the Consolidated Appropriations Act of 2018 (H.R. 1625), an omnibus spending bill that includes the Clarifying Lawful Overseas Use of Data Act (the CLOUD Act)....more

Recent Anti-Kickback Cases Emphasize Government Scrutiny of Speaker’s Bureaus and Lavish Meals Funded by Pharmaceutical and Device...

The Department of Justice (DOJ) recently resolved two health care fraud cases – one criminal and one civil – that demonstrate the government’s continued scrutiny of lavish meals and “speaker’s bureaus” sponsored by...more

Data Privacy + Cybersecurity Insider - February 2018 #4

U.S. Estimates that Cyber Hacks Cost Up to $109 Billion in 20 - The Council for Economic Advisors (CEA) issued a report this month, entitled “The Cost of Malicious Cyber Activity to the U.S. Economy,” which concludes that...more

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