Monday, July 29, 2013

Medical Supply PHI Breach; Employees, Rivals Sued

In June 2013 the new owners of the San Jose Medical Supply Company (SJMS), a home healthcare services company, reported a breach that had occurred between August 2011 and December 2011. The breach resulted in unauthorized disclosure of customers’ personal and medical information when the business was under previous ownership.

The former owner died in August 2011, but the company continued operating through its employees and agents under the supervision of trustees. In August 2012 the new owner took over and by June 2013 “uncovered certain suspicious activity taken by the former employees, officers and/or agents of the prior owner, which may have compromised the security of customers' health information. ”

"The PHI that may have been improperly disclosed included full name, date of birth, Social Security number, home address, Medi-Cal ID number, physician’s name and contact information, prescriptions, past invoices to SJMS, diagnosis, disability code, and type and quantity of medical supplies ordered."
The new owners allege that former SJMS associates gave customers' personal information to two rival vendors. A civil lawsuit has been filed against the former employees and two medical supply firms, Front Medical Supply and Baypoint Medical Supply.
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(a) San Jose Medical Supply reports insider breach; sues former employees and two competitors -, 07/19/2013

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