Part 4 — $22 Million Worth of Reasons Why It Pays to Comply with Regulatory Organizations

In Part 3 of our regulatory fines series, Merrill Lynch demonstrated how important it is for businesses to stay within their regulatory parameters — especially when those regulations directly affect customers. Like Merrill Lynch, one healthcare organization learned this lesson the hard way.

Cignet Health — $4.3 million

Between September 2008 and October 2009, 41 patients filed complaints again Rockville, MD healthcare practice Cignet Health.

The practice had refused to provide patients with copies of their medical records, even when the U.S. Office for Civil Rights (OCR) issued a subpoena demanding that Cignet produce the records. The fine for this violation was $1.3 million. It was only after the U.S. District Court obtained a default judgment against Cignet on March 30, 2012, that the practice produced the records.

In addition, Cignet refused to cooperate with the OCR’s investigation from March 2009 to April 2010, which earned the firm an additional HIPAA fine of $3 million, bringing Cignet’s total fines to $4.3 million, and the running total for this series to $7,275,000.

Don't miss the final part of this series next month!

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