Insureon Blog

Pharmacist Found Liable for $1.44 Million in HIPAA Professional Liability Case

19. August 2013 16:57

An Indiana court has awarded a plaintiff $1.44 million in a professional liability case she brought against a pharmacist, according to reports from Mondaq. The case highlights how HIPAA requirements affect the day-to-day work required of pharmacists and other allied health professionals, as well as the potentially stratospheric cost of violating those requirements.

Here’s a look at what happened in the Indiana case and how you can ensure that your allied health practice maintains HIPAA compliance and avoids costly fines and judgments.

HIPAA Privacy Violation: Improper Disclosure of Client Information

According to sources, the million-plus-dollar judgment resulted from the following events:



The Indiana Superior Court found in favor of the patient, noting that accessing and sharing her information violated standards of care outlined by HIPAA. In its decision, the court noted that the pharmacist was negligent and guilty of privacy invasion and publication of negligent facts (a professional liability / malpractice matter). It also found that Walgreens had liability for failing to terminate the pharmacist after it learned about the behavior.

What’s perhaps most interesting for other pharmacists and allied health professionals, however, is the potential decision of higher courts.

HIPAA Violations, Standards of Care, and Causes of Action

This case made news in part because it marks the first time a court has awarded a plaintiff such a large judgment for a defendant’s violation of standards of care defined by HIPAA. Here’s why that matters for allied health professionals:



How to Protect Yourself and Your Practice

So what can pharmacists and other allied health professionals do to ensure that they’re protected from lawsuits over HIPAA violations? Obviously, the most important thing is to make sure you are aware of HIPAA care standards (especially as they relate to disclosure of patient information) and that you establish protocol to ensure your employees adhere to those standards.

It’s also important to remember that, even if you don’t think you violated HIPAA guidelines, a dissatisfied patient could bring a lawsuit against you. If your state doesn’t have clear legal precedents outlining how such a lawsuit should be handled, you’ll need solid legal representation to help you argue your case. A solid Malpractice / Professional Liability Insurance policy can pay for the costs of mounting such a defense, which is crucial given the high cost of legal fees.

Finally, keep lines of communication open among yourself, your patients, and your employees. Many legal actions can be avoided by addressing small problems before they grow into big ones.

Tags:

Allied Health Insurance | Errors & Omissions | Infographics | Malpractice Insurance

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