Hospital criminal liability examined in DOJ opinion
HIPAA enforcement rule questioned
Hospitals covered by the Health Insurance Portability and Accountability Act (HIPAA) may be prosecuted for criminal violations under the act, according to a recent opinion requested by the Department of Health and Human Services (HHS) from the Justice Department’s Office of Legal Counsel.
The "knowingly" element of the offense, the opinion states, requires the government to prove only that the violators had knowledge of the facts that constitute the offense, not that they knew their conduct violated the law.
Depending on the facts of the case, directors, officers, and employees of covered entities may be directly liable for HIPAA violations in accordance with general principles of corporate criminal liability.
In addition, the opinion added, others who may not be directly liable may be prosecuted under principles of aiding and abetting and conspiracy.
In another development regarding provider liability under HIPAA, the American Hospital Association (AHA) has taken issue with the HHS' proposed enforcement rule.
The AHA expressed concern in a letter to the HHS general counsel that the rule increases the potential liability exposure of all covered entities and may result in the imposition of civil money penalties that significantly exceed the maximum penalty permitted by the statute.
The rules proposed as methodologies for determining violations of HIPAA regulations and the amount of any penalty are not easy to understand and do not provide covered entities with sufficient information to predict and limit their liability, the AHA contend. It said "provisions imposing liability on a covered entity for the violations incurred by individuals and organizations over whom the covered entity may be able to exercise little real control inappropriately expands the liability exposure of all covered entities."
AHA also encouraged HHS not to publicize the identity of those receiving civil money penalties, saying the negative and unintended effects would far outweigh any alleged benefit, and endorsed HHS' continued emphasis on voluntary compliance.
Hospitals covered by the Health Insurance Portability and Accountability Act (HIPAA) may be prosecuted for criminal violations under the act, according to a recent opinion requested by the Department of Health and Human Services (HHS) from the Justice Departments Office of Legal Counsel.You have reached your article limit for the month. Subscribe now to access this article plus other member-only content.
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