Insurance company tells hospitals: we shouldn’t pay if you’re careless with patient data

https://www.consumeraffairs.com/news/insurance-company-tells-hospitals-we-shouldnt-pay-if-youre-careless-with-patient-data-052915.html

In February 2014, former patients filed a class-action lawsuit against Cottage Health and inSync (the company responsible for putting Cottage records in a secure online location), complaining that from Oct. 8 through Dec. 2 of the previous year, the records of people who attended any Cottage hospital from Sept. 29, 2009 through Dec. 2, 2013 were available online, and that inSync “failed to provide any encryption or other security to prevent anyone from reading the medical records.” …

This data included patients’ names, addresses and dates of birth, and sometimes their diagnoses, lab results and any procedures performed…