University of Texas MD Anderson Cancer Center

The covered entity (CE), The University of Texas MD Anderson Cancer Center, reported a breach of electronic protected health information (ePHI) due to the loss of an unencrypted thumb drive that contained the ePHI of 3,598 individuals. The ePHI involved included names, birthdates, diagnoses, lab results, medications prescribed, and other treatment information. Upon the completion of its investigation, OCR sought resolution of potential violations of the HIPAA Rules for failure to implement encryption and decryption and impermissible disclosure of ePHI. When informal resolution was not successful, OCR proceeded with formal enforcement. An administrative law judge and the Departmental Appeals Board (DAB) ruled in OCR’s favor and imposed a civil money penalty (CMP); however, the U.S. 5th Circuit Court of appeals vacated the CMP and remanded this case to the DAB for further proceedings consistent with their opinion. The DAB dismissed the case.