💥 Case Study: How a $50 Hard Drive Cost a Hospital $2.4 Million

Curley Hospital in Ohio was fined $2.4 million after a physical hard drive—containing unencrypted patient health information—was stolen from an unlocked office.

The result? An extensive HIPAA investigation, a corrective action plan, and a major reputational hit.

📌 What Happened:

The hospital stored patient files on a portable hard drive that wasn’t encrypted or secured. A thief walked in, took the drive, and exposed thousands of records.

🚨 What Went Wrong:

• No encryption protocols for physical or electronic files

• No security for offices containing PHI

• Improper disposal of legacy systems and storage

• No documentation of data protection procedures

💸 The Consequences:

• $2.4 million fine from the U.S. Department of Health and Human Services (HHS)

• Required corrective action plan

• Long-term damage to trust and reputation

🧠 Lesson Learned:

Even one oversight—like skipping encryption or locking a door—can lead to devastating consequences. This case underscores the need to:

✅ Encrypt all ePHI✅ Secure every access point✅ Create a breach response protocol✅ Audit your physical and digital environments

At CliniVera Compliance, we help healthcare providers proactively prepare for HIPAA audits and avoid the financial and legal disasters that come with noncompliance.

📞 Book your consultation now at www.cliniveracompliance.com

HIPAA Audit Nightmare: $2.4M Fine for One Mistake