The Office for Civil Rights of the Department of Health and Human Services (OCR) announced on September 26, 2024, that it had entered a settlement with Cascade Eye and Skin Centers (together, Cascade) for $250,000 following an investigation of a ransomware attack against them.

This is the fourth settlement against a victim of a ransomware attack. According to the OCR’s press release, “Ransomware and hacking are the primary cyber-threats in health care. Since 2018, there has been a 264% increase in large breaches reported to OCR involving ransomware attacks.”

The OCR’s investigation found that 291,000 files were affected by the attack. During its investigation, it alleges that Cascade potentially violated HIPAA by failing to conduct a risk analysis and to have sufficient monitoring of its systems to prevent a cyber-attack.

The settlement is a stark reminder to covered entities and business associates that even if you are a victim of a criminal attack, you are still required to follow HIPAA. Having a robust HIPAA compliance program in place is essential to protecting against threats and possible enforcement actions. Many HIPAA-regulated entities are reviewing their HIPAA compliance programs at this time to address the recent amendment to HIPAA regarding reproductive health information. For instance, Notice of Privacy Practices are required to be updated by December 2024. Now is the time to review and update your HIPAA compliance program.

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.