Serene Sedation

An unauthorized user accessed the computer network of a business associate (BA) which stored the covered entity's (CE) financial records. The server contained the protected health information (PHI) of approximately 5,207 individuals, including demographic and financial information. Following the breach, the CE discontinued storing financial records on its BA's networks, and increased its own security by adding encryption. OCR reviewed the CE’s risk analysis and BA agreements. OCR obtained assurances that the CE took immediate steps to increase the security of ePHI by encrypting its computer hard drives, encrypting outgoing e-mails, and using a virtual private network (VPN). The CE provided breach notification to HHS, affected individuals, and the media.