Memorial Healthcare Systems fined for lack of audit controls

Featured image

Share this article

Memorial Healthcare Systems has paid the U.S Department of Health and Human Services $5.5 million as a result of violations of the Health Insurance Portability and Accountability act of 1996.

Memorial Healthcare Systems manages six hospitals, an urgent care center and an elderly facility within South Florida.

Memorial Healthcare Systems fined for lack of audit controls

Between April 2011 and April 2012 the login credentials of an old employee were used by staff members to access and distribute ePHI affecting over 80,000 individuals. The data that was distributed included names, dates of birth and social security numbers. MHS had loose policies in place for employee’s access to protected health information however they failed to implement structural safeguards and audit controls to monitor who can access protected health information.

MHS failure to regularly monitor employee activity within their system ultimately led to their breach. If they had implemented proper audit controls MHS could have had prevented unauthorized access to its patient’s information.

Audit controls maintain a system of record of all application processes and system activity by individual users. Having audit controls in place allows covered entities to review inappropriate access, detect potential breaches and malicious activity, and provide evidence during investigations.

Summary of HIPAA Fines

  • Providing access of protected health information of over 80,000 individuals
  • Failure to report breach of ePHI in a timely fashion.
  • Failure to implement audit controls to monitor system activity
  • Failure to implement the correct policies and procedures to prevent, detect and handle security breaches
Try Paubox Email Suite for FREE today.
Author Photo

About the author

Evan Fitzgerald

Read more by Evan Fitzgerald

Get started with
end-to-end protection

Bolster your organization’s security with healthcare’s most trusted HIPAA compliant email solution

The #1-rated email encryption 
and security software on G2

G2 Badge: Email Encryption Leader Fall 2022
G2 Badge: Security Best Usability Fall 2022
G2 Badge: Encryption Momentum Leader Fall 2022
G2 Badge: Security Best Relationship Fall 2022
G2 Badge: Security Users Most Likely to Recommend Fall 2022
G2 Badge: Email Gateway Best Relationship Fall 2022
G2 Badge: Email Gateway Best Meets Requirements Fall 2022
G2 Badge - Users Most Likely to Recommend Summer 2022
G2 Badge: Email Gateway Best Results Fall 2022
G2 Badge: Email Gateway Best Usability Fall 2022
G2 Badge: Email Gateway Best Support Fall 2022
G2 Badge: Email Gateway Easiest To Use Fall 2022
G2 Badge: Email Gateway Easiest Setup Fall 2022
G2 Badge: Email Gateway Easiest Admin Fall 2022
G2 Badge: Email Gateway Easiest to do Business with Fall 2022
G2 Badge: Email Gateway Highest User Adoption 2022
G2 Badge: Email Gateway High Performer Fall 2022
G2 Badge: Email Gateway Momentum Leader Fall 2022
G2 Badge: Email Gateway Most Implementable Fall 2022
G2 Badge: Email Gateway Users Most Likely to Recommend Fall 2022