The Office for Civil Rights (OCR) this week announced a settlement with Peachstate Health Management LLC (aka AEON Clinical Laboratories) following a compliance review that uncovered alleged violations of HIPAA.

The settlement includes a $25,000 payment to OCR by Peachstate, a corrective action plan, and three years of monitoring by OCR.

OCR initiated a compliance review of Peachstate in December 2017 to determine its compliance with HIPAA following a report of a data breach by the U.S. Department of Veterans Affairs.  The notification alleged that the data breach was caused by the VA’s vendor, which was subsequently acquired by Peachstate.

According to OCR’s press release, “OCR’s investigation found systemic noncompliance with the HIPAA Security Rule, including failures to conduct an enterprise-wide risk analysis, implement risk management and audit controls, and maintain documentation of HIPAA Security Rule policies and procedures.”

OCR further stated, “This settlement reiterates OCR’s commitment to ensuring compliance with rules that protect the privacy and security of protected health information.”

Photo of Linn Foster Freedman Linn Foster Freedman

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her…

Linn Freedman practices in data privacy and security law, cybersecurity, and complex litigation. She is a member of the Business Litigation Group and the Financial Services Cyber-Compliance Team, and chairs the firm’s Data Privacy and Security and Artificial Intelligence Teams. Linn focuses her practice on compliance with all state and federal privacy and security laws and regulations. She counsels a range of public and private clients from industries such as construction, education, health care, insurance, manufacturing, real estate, utilities and critical infrastructure, marine and charitable organizations, on state and federal data privacy and security investigations, as well as emergency data breach response and mitigation. Linn is an Adjunct Professor of the Practice of Cybersecurity at Brown University and an Adjunct Professor of Law at Roger Williams University School of Law.  Prior to joining the firm, Linn served as assistant attorney general and deputy chief of the Civil Division of the Attorney General’s Office for the State of Rhode Island. She earned her J.D. from Loyola University School of Law and her B.A., with honors, in American Studies from Newcomb College of Tulane University. She is admitted to practice law in Massachusetts and Rhode Island. Read her full rc.com bio here.