Healthcare Risk Management – September 1, 2025

Drug Diversion Still a Serious Compliance, Patient Safety Issue

Drug diversion remains as big a problem in healthcare organizations as ever, threatening the safety of patients and quality of care provided by impaired clinicians. Addressing the problem will require a comprehensive effort from risk managers and medical leaders.

Staying Compliant Can Be Challenging in 2025

Compliance is always a main concern for healthcare leaders, but some periods can be more challenging than others. Different federal administrations address compliance in different ways, and it is important to understand their particular areas of focus.

Know When to Settle and When to Fight

With any medical malpractice case, or other lawsuit, the healthcare organization always comes to a decision point about whether to settle or fight the claim in court. Thinking ahead about how to make that decision can help you make the right choice when the time comes.

Spouse and Family Access to PHI Often Disputed

As long as HIPAA has been around, one of the most contentious issues has been whether spouses, partners, other family, or friends can receive information about a patient — or whether non-healthcare entities can discuss someone’s health. Healthcare providers often misinterpret HIPAA requirements in this area, either being overly restrictive or releasing protected health information improperly.

Jury Awards $20 Million in Fatal Surgery Malpractice Case

A jury awarded $20 million to the estate of a 68-year-old patient who died following what was supposed to be a routine abdominal surgery. The three-week trial revealed that the patient experienced internal bleeding during a sigmoid colon resection, but neither the hospital’s surgeons nor the anesthesia group recognized or adequately responded to it. By the time action was taken, the patient had entered hemorrhagic shock and could not be revived.

Court Upholds Record $207 Million Malpractice Verdict

In July 2025, an appellate court unanimously affirmed a record-breaking medical malpractice judgment of $207 million against a hospital for catastrophic birth injuries. The case involved a newborn who sustained severe brain damage leading to cerebral palsy and profound lifelong disabilities after a mishandled delivery at the hospital. A jury had awarded $183 million (later increased to $207 million with delay damages) for the child’s future care needs and pain and suffering. On appeal, the hospital argued that the verdict was exorbitant and unsupported, but the appellate court held that the award did not “shock the conscience” in light of the trial evidence.

Purl Decision Affects HIPAA Compliance, Reproductive Health

A recent court ruling has a significant effect on HIPAA compliance as it pertains to reproductive health. It can be seen as relief from a rule that some criticized as burdensome and unnecessary. When the Supreme Court’s ruling in Dobbs v. Jackson Women’s Health Organization prompted states to restrict access to reproductive health services, Health and Human Services issued a rule strengthening reproductive health privacy protections under HIPAA.