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Late last week, the U.S. Department of Health and Human Services Office for Civil Rights (OCR) announced a $3.5 million settlement with a large provider of kidney dialysis services (the “Provider”) for multiple violations of the Health Insurance Portability and Accountability Act and its associated regulations (HIPAA).  In early 2013, the Provider filed five separate breach reports for incidents that occurred in 2012 and involved several of its facilities.  These breaches involved, among other things, theft of desktop computers from a medical office, theft of a USB drive from a workforce member’s car, loss of a computer hard drive, and theft of a laptop from a parked car.

As part of its settlement with OCR, the Provider entered into a corrective action plan (CAP) that requires the company to improve its policies and procedures for the protection of patient health information.  The CAP specifically requires the Provider to conduct a thorough, system-wide risk analysis of potential risks to and vulnerabilities of the confidentiality, integrity, and availability of its ePHI; review and revise its policies and procedures, including those concerning device and media controls and facility access controls; and revise and enhance its health privacy training program.

This settlement once again emphasizes the importance of a comprehensive, up-to-date risk analysis.  It also highlights the fact that mobile device privacy and security continue to be important issues for a range of healthcare providers.  Moreover, it is a reminder that OCR can, and does, take interest in smaller breaches.  Each of the five reported breaches affected fewer than 500 individuals.  Contact a member of Venable’s health law team to discuss how your organization can stay ahead of the curve in today’s enforcement environment.

Please find the OCR press release here.

  • Draft guidance documents propose a framework for clinical and patient decision software and explain policy changes driven by 21st Century Cures Act
  • Final guidance document adopts International Medical Device Regulators Forum principles for addressing “clinical evaluation” of Software as Medical Device
  • Public Workshop (January 2018) will discuss progress of pilot precertification program

The FDA’s December 8 announcement of the availability of three new guidance documents, and of a public workshop to be held in January 2018, demonstrates the agency’s commitment to prioritizing the development of digital health software policy. As we previously reported here, Commissioner Gottlieb made it the subject of his first public statement and shortly afterward led the FDA’s rollout of a framework – the Digital Health Innovation Action Plan – for ensuring that its policies enable innovators to efficiently deliver safe and effective digital health technologies to patients and consumers. The publication of these documents and announcement of the workshop fulfill a few of the ambitious promises contained in the agency’s Action Plan.

Continue Reading Regulating at the Speed of Digital: FDA Implementation of Key Aspects of Digital Health Innovation Action Plan Progressing Quickly

No two health care companies are alike, but many face similar challenges when managing their data risk. Many of these challenges arise due to the competing desires with which every modern organization now struggles—one between innovation and growth on the one hand and compliance and legal risk on the other.

Specifically, the following five issues are top of mind:

  1. The tension between data growth and analytics and data minimization;
  2. Handling connected devices and mobile apps;
  3. Creating effective cross-functional privacy and security teams;
  4. The data implications of acquisitions; and
  5. Effective and tiered vendor management.

We discuss these issues and offer practical guidance on each.

Continue Reading Top Five Privacy and Data Security Issues Facing Healthcare Companies

The fast-growing field of digital health is transforming healthcare by bringing together digital communications technology, electronic health information, electronic prescribing, connected medical devices, and telehealth. These technologies are being deployed by healthcare entities ranging from small health tech startups to large, established hospital systems, medical device companies, and other traditional healthcare companies. Telehealth systems are already in use for applications as varied as direct-to-consumer urgent care and remote provider-to-provider consultations for treatment of complex conditions such as strokes or rare genetic diseases. With these exciting new developments comes a new set of regulatory challenges and concerns for companies in the space. This alert provides a brief overview of some of the laws and regulations that may apply to health companies engaging in digital health.

Continue Reading Digital Health Law: What Digital Health Companies Need to Keep in Mind

  • Opens application process and public comment period for precertification pilot program
  • Nine companies to be chosen by September 1, 2017

Last June, FDA Commissioner Scott Gottlieb made his first public statement as Commissioner by announcing the imminent rollout of a new “Digital Health Innovation Plan.” This statement signaled his intent to prioritize the agency’s efforts to create – and clearly articulate – a regulatory regime that promises to “help innovators navigate a new, modern regulatory process” that will efficiently enable the delivery of safe and effective digital health technologies to patients and consumers.

On July 28, FDA formally rolled out its Digital Health Innovation Action Plan, along with a process for companies to apply to participate in one key component: the Software Precertification Pilot Program. The Action Plan describes several concrete deliverables that the agency plans to complete by the first quarter of 2018 to put a “reimagined” regulatory regime for digital health technologies in place. This will include:

Continue Reading FDA Launches Action Plan for Digital Health Regulation