Indiana man sues over health system security miscue

An Indiana man is suing Sisters of St. Francis Health Services for an alleged security lapse that might have exposed the private information of more than 260,000 patients.

The Associated Press reports that Michael Chaney of Greenwood, IN, alleges that the Mishawaka, IN-based health system and its contractor, Advanced Receivables Strategy of Madison, TN, violated HIPAA statutes, failed to take corrective action, and did not inform patients of the issue.

The incident allegedly took place in July, when an employee of Advanced Receivables Strategy mistakenly left compact disks containing patient information -- including names and Social Security numbers -- in a computer bag being returned to a store. Sisters of St. Francis allegedly did not notify patients of the misplaced information until October.

The lawsuit in U.S. District Court in Indianapolis also names Advanced Receivables' parent company, Perot Systems, and an Advanced Receivables employee as defendants. The suit seeks damages, including no less than $5,000 for each affected class member.

The AP report noted that a spokesman for the Sisters of St. Francis said the organization cannot comment on pending litigation.

AuntMinnie.com staff writer
November 2, 2006

Related Reading

Practices that embrace EHR security regulations inspire patient confidence, July 14, 2006

Health IT bill moves forward in U.S. Congress, May 25, 2006

HIPAA compliance remains inconsistent, April 12, 2006

Dealing with HIPAA changes in 2006, April 6, 2006

U.S. Senate committee moves on health information technology, July 21, 2005

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