Federal regulators are allowing cyber insurer Beazley Group to cover a $2.3 million HIPAA fine on behalf of its bankrupt client, 21st Century Oncology, according to Healthcare Info Security. Earlier this month, the Fort Myers, Fla.-based company agreed to pay HHS' Office for Civil Rights (OCR) a $2.3 million settlement to resolve issues related to a 2015 data breach that affected 2.2 million patient records. Separately, it reached a $26 million settlement, resolving false claims allegations and a self-disclosure that it submitted false attestations regarding the use of EHR software. However, in May, 21st Century Oncology filed for chapter 11 bankruptcy. OCR has repeatedly said that it doesn't wish to put organizations out of business when issuing these fines, but privacy attorney Adam Greene of law firm Davis Wright Tremaine, who was not involved in the case, told Healthcare Info Security that "when things might be tough financially, OCR clearly still expects the organization to put significant resources into privacy and security."
