Lack of Timely Action & Safeguarding Devices Risks Security & Costs Money

On January 18, 2010, Children’s Medical Center of Dallas (Children’s) filed a breach report with The U.S. Department of Health and Human Services, Office for Civil Rights (OCR) indicating the loss of an unencrypted, non-password protected BlackBerry device at the Dallas/Fort Worth International Airport on November 19, 2009.

The device contained the electronic protected health information (ePHI) of approximately 3,800 individuals.

On July 5, 2013, Children’s filed a separate Health Insurance Portability and Accountability Act of 1996 (HIPAA) Breach Notification Report with OCR, reporting the theft of an unencrypted laptop from its premises sometime between April 4 and April 9, 2013.

Children’s reported the device contained the ePHI of 2,462 individuals.

Although Children’s implemented some physical safeguards to the laptop storage area (e.g., badge access and a security camera at one of the entrances), it also provided access to the area to workforce not authorized to access ePHI.

(Learn More, courtesy of HIPAA Help Center and YouTube)

OCR’s investigation revealed Children’s noncompliance with HIPAA Rules, specifically, a failure to implement risk management plans, contrary to prior external recommendations to do so, and a failure to deploy encryption or an equivalent alternative measure on all of its laptops, work stations, mobile devices and removable storage media until April 9, 2013.

Despite Children’s knowledge about the risk of maintaining unencrypted ePHI on its devices as far back as 2007, Children’s issued unencrypted BlackBerry devices to nurses and allowed its workforce members to continue using unencrypted laptops and other mobile devices until 2013.

TOCR Acting Director Robinsue Frohboese
Robinsue Frohboese, TOCR Acting Director

“Ensuring adequate security precautions to protect health information, including identifying any security risks and immediately correcting them, is essential” said OCR Acting Director Robinsue Frohboese.

“Although OCR prefers to settle cases and assist entities in implementing corrective action plans, a lack of risk management not only costs individuals the security of their data, but it can also cost covered entities a sizable fine.”

OCR has announced a HIPAA civil money penalty against Children’s, based on its impermissible disclosure of unsecured ePHI and non-compliance over many years with multiple standards of the HIPAA Security Rule.

OCR issued a Notice of Proposed Determination in accordance with 45 CFR 160.420, which included instruction for how Children’s could file a request for a hearing. Children’s did not request a hearing.

Accordingly, OCR issued a Notice of Final Determination and Children’s paid the full civil money penalty of $3.2 million. Children’s is a pediatric hospital in Dallas, Texas, and is part of Children’s Health, the seventh largest pediatric health care provider in the nation.

The Notice of Proposed Determination and Notice of Final Determination may be found on the OCR website at

The U.S. Department of Health and Human Services, Office for Civil Rights logo

OCR’s summary of the HIPAA Security Rule may be found at

To learn more about non-discrimination and health information privacy laws, your civil rights, and privacy rights in health care and human service settings, and to find information on filing a complaint, visit us at

Follow OCR on Twitter at