HHS Issues Notice of First CMP for HIPAA Privacy Violations; Tags Cignet Health with $4.3 Million Penalty

On February 22, 2011, the Department of Health and Human Services Office of Civil Rights (OCR) released a Notice of Final Determination finding that Cignet Health (Cignet), a health system in Maryland, violated the Health Insurance Portability and Accountability Act (HIPAA) Privacy Rule. OCR imposed a civil money penalty (CMP) of $4.3 million for the violations. The CMP is the first ever levied by OCR for a HIPAA violation and was authorized be the new penalty provisions in Health Information Technology for Economic and Clinical Health (HITECH) Act.

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