Wednesday, April 11, 2012

New Trend - Plaintiffs Lawyers Suing Hospitals for Data Privacy Breaches

Plaintiffs' lawyers think they have found a profitable new line of business - data privacy breach suits against hospitals, medical services providers and health insurance companies.

The suits are driven by stricter patient data privacy laws where fines start at $1,000-per-instance and can run up to $250,000 per violation if the disclosure is done willfully or negligently.

Moreover, plaintiffs' lawyers who specialize in other types of consumer actions are interested because recent pro-business court decisions make non-healthcare suits less attractive.
"The privacy data breach area offers some new opportunities to expand the types of cases that we're handling." - Eric Grover, lawyer known for employment and nonhealth-related consumer protection cases
The health care industry views these lawsuits as a serious risk. One lawyer claimed that McKesson Corp. unsuccessfully lobbied Sacramento legislators to remove the $1,000 damages clause from the California's Confidentiality of Medical Information (CMIA) Act of 1981.
Protect your healthcare firm with Veriphyr's patient privacy breach detection service. Learn how to proactively identify unauthorized breaches of patient data privacy - with no hardware and no on-site software.
Sources:
(a) Health Data Breaches Offer New Vein for Plaintiffs Lawyers to Tap - The Recorder, 4/5/2012

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