Wednesday, March 18, 2009

CVS to pay $2.25 million to settle HIPAA violation

CVS to pay $2.25 million to settle HIPAA violation
CVS Caremark must pay $2.25 million to settle federal charges that its employees threw out personal information about patients into garbage bins.

The Federal Trade Commission (FTC) said on Wednesday that the company -- which operates about 6,300 retail outlets -- lacked proper procedures for discarding sensitive data about customers when, in 2006, pharmacy workers unloaded pill bottles, medication instruction sheets and computerized order information into open trash containers.

This personal information was protected under the Health Insurance Portability and Accountability Act (HIPAA), according to the FTC. (Full text at www.scmagazineus.com)
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