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Can HIPAA violations lead to termination?

Written by Farah Amod | Oct 2, 2024 1:55:22 PM

HIPAA violations can have serious consequences for both healthcare organizations and individual employees. The severity of a violation, along with factors such as the employee's compliance history and the organization's sanctions policy, may result in termination.

 

Understanding HIPAA violations

HIPAA violations can take various forms, including unauthorized access to patient records, improper disposal of protected health information (PHI), and verbal disclosure of sensitive medical conditions. 

Not all violations are equal. The severity of a violation can vary based on factors such as the nature of the violation, its consequences, the employee's compliance history, and the sanctions policy of the employer.

When a HIPAA violation occurs, healthcare organizations are responsible for investigating the incident to determine the extent of the violation, its implications for patient privacy, potential legal issues, and the actions that need to be taken to prevent similar violations in the future.

Read more: What is a HIPAA violation?

 

Definition and examples of HIPAA violations

A HIPAA violation is an event that causes non-compliance with the rules and regulations of HIPAA. This violates any one or more of the Security rule requirements. These could include:

  • Unauthorized access (such as sharing PHI with unauthorized persons)
  • Inadequate security measures (failure to monitor access to PHI)
  • Mishandling patient information (Not providing secure encryption during the transit of data)

Read more: Understanding HIPAA violations and breaches 

 

Termination for HIPAA violations

The repercussions for a HIPAA violation can vary depending on the policies and procedures in place at the organization and the severity of the violation. Some healthcare organizations have strict rules regarding HIPAA violations and may choose to terminate employees who violate HIPAA regulations. On the other hand, some organizations may opt for internal disciplinary action for minor violations.

In cases where an employee knowingly or unknowingly violates HIPAA rules, disciplinary action may be taken against the individual. This can range from suspension pending an investigation to termination of employment. 

 

Criminal penalties for HIPAA violations

Termination is not the only consequence of a HIPAA violation. In some cases, employees may also face criminal penalties for their actions. The Department of Justice can prosecute individuals for criminal violations of HIPAA rules.

Criminal penalties for HIPAA violations can range from financial penalties to jail time. The severity of the penalty depends on various factors, such as whether the violation involved knowingly obtaining and disclosing PHI, false pretenses, or malicious intent. Jail sentences can range from one year to up to 10 years for HIPAA violations committed with malicious intent or personal gain.

Read alsoWhat are the penalties for HIPAA violations? 

 

HIPAA violation penalties for employees

HIPAA violation penalties for employees can vary from organization to organization. Employers typically have sanctions policies that outline the penalties for violations. These policies consider factors such as the intention behind the violation, the speed at which it was reported, the employee's cooperation during the investigation, and whether it was a first-time offense.

At the lower end of the scale, minor violations may result in verbal warnings and additional training. However, as the severity or frequency of violations increases, so do the penalties. Employees may receive written warnings, suspensions, or, in cases where there is a history of violations, termination of their contract.

 

In the news

Mass General Brigham in Boston, MA, terminated two employees following a privacy breach identified on April 4, 2024. The health system launched an investigation upon discovering that the employees had allowed an unauthorized third party to perform some of their job functions, potentially exposing patient information. The investigation, which concluded on May 28, 2024, confirmed that these actions took place between February 26, 2024, and April 4, 2024. 

The compromised information included patient names, addresses, medical record numbers, contact details, health insurance information, and clinical data. Additionally, some Social Security numbers and financial information were exposed, although no financial account numbers were affected. In response to this breach, Mass General Brigham reinforced its employee training and security processes. Affected individuals were offered complimentary credit monitoring and identity theft protection. 

 

FAQs

Do all HIPAA violations lead to termination?

There isn’t a straightforward answer to this. While every violation should be addressed seriously, some have more severe outcomes than others. For instance, accidental disclosures are generally handled differently than intentional sharing of information with a larger audience. Organizations typically have internal guidelines outlining which HIPAA violations could result in termination.

 

Who determines if an employee should be terminated after a HIPAA investigation?

Although the Department of Health and Human Services (HHS) can impose penalties on organizations for HIPAA violations, it does not decide if an individual should be dismissed. This decision lies with the employer, who considers factors like the breach’s severity and the circumstances surrounding it. The more serious the breach and the greater the employee’s responsibility, the higher the likelihood of termination.

 

Can employees be terminated for accidental HIPAA violations?

Whether a HIPAA breach was accidental or intentional, the impact on the patient remains the same—their privacy has been compromised. However, employers may be more lenient with genuine errors than with deliberate violations. For example, if a physician accidentally discloses more PHI than necessary when seeking advice from another doctor (breaching HIPAA’s minimum necessary standard), the employer might opt to provide additional training instead of pursuing termination.

 

Can someone fired for a HIPAA violation still work in healthcare?

This depends on the specifics of the violation. If termination was due to minor infractions or if a HIPAA breach contributed to a broader performance issue, future employers may overlook it. However, if losing your job was accompanied by losing your medical license, finding another role in healthcare might be difficult, requiring a shift to a different career path.

 

Can a termination for HIPAA violations be challenged?

If you feel the HIPAA violation wasn’t your fault—such as a breach caused by a colleague’s actions or inadequate training—you should seek legal counsel to explore your options for contesting the termination.

See also: HIPAA Compliant Email: The Definitive Guide