HIPAA violations are a growing concern in today’s digital healthcare environment, where personal health information is constantly stored, transferred, and accessed electronically. Each year, headlines spotlight organizations that have failed to protect health data, resulting in hefty fines, reputational damage, and increased scrutiny from regulators and the public.
In this article, we’ll explore recent HIPAA violations that have made news, explain what went wrong in each case, and outline practical lessons your business can apply to avoid similar outcomes.
For a comprehensive look at HIPAA rules and how to comply, check out our Essential Checklist for HIPAA Compliance.
A HIPAA violation happens when a covered entity or business associate fails to meet the requirements of the HIPAA Privacy, Security, or Breach Notification Rules. These rules are designed to protect Protected Health Information (PHI) and ensure it remains confidential, secure, and accessible only to authorized individuals.
Violations can be accidental or intentional, but both carry serious consequences.
Common HIPAA Violations Include:
- Unauthorized access to PHI: such as non-staff viewing records.
- Failure to encrypt sensitive data: increasing exposure to breaches.
- Inadequate employee training: leading to misuse or disclosure of PHI.
- Missing technical or administrative safeguards: as required by the Security Rule.
- Delays in breach notification: which must be reported within 60 days by law.
As noted by the American Medical Association (AMA), even minor lapses like sending records to the wrong person can trigger enforcement. More serious cases, especially those involving willful neglect, may result in fines or criminal charges.
The Office for Civil Rights (OCR) at HHS investigates violations and considers the organization’s safeguards, response, and cooperation when determining penalties.
To learn more about HIPAA enforcement trends and penalty structures, you can visit the HHS enforcement highlights page.
High-Profile HIPAA Violations: What Went Wrong and Why It Matters
Real-world HIPAA breaches offer valuable insight into how privacy failures happen and how they can be prevented. Below are a few high-profile incidents along with key takeaways and resources for strengthening your own compliance posture.
Kaiser Permanente (2023): Emails Sent to the Wrong Recipients
What happened: In 2023, Kaiser Permanente reported a breach affecting over 13,700 patients after internal emails containing personal health information (PHI) were mistakenly sent to unauthorized individuals. The exposed data included names, medical record numbers, and appointment details.
What went wrong: The organization failed to implement sufficient technical controls to prevent internal misrouting of sensitive communications. This was largely due to a lack of automated checks or safeguards within their email system to validate recipients when handling PHI.
Why it matters: HIPAA requires that covered entities implement access and transmission safeguards under the Security Rule. Even accidental disclosures can lead to regulatory action if basic controls are missing.
What you can do:
Implement role-based access controls, use secure messaging platforms, and conduct routine audits of internal communications systems to prevent inadvertent disclosures. Ensure employees are trained on identifying PHI and using approved tools.
Read the whole report on the Kaiser Permanente breach.
Montefiore Medical Center (2020): Insider Access and Data Theft
What happened: At Montefiore Medical Center in New York, an employee accessed and stole thousands of patient records over six months, later selling the information to third parties. The breach remained undetected until suspicious activity was flagged.
What went wrong: Montefiore lacked adequate user activity monitoring and failed to enforce access restrictions that could have alerted security teams earlier. This highlights a critical gap in insider threat detection.
Why it matters: HIPAA mandates that organizations implement audit controls and regularly review system activity to detect unauthorized access. Internal misuse of PHI is a growing concern, and regulators expect active safeguards to be in place.
What you can do:
Deploy user activity monitoring tools, restrict access to PHI based on job roles, and conduct routine access audits. Educate staff on ethical responsibilities and establish a clear disciplinary policy for violations.
For a detailed account of the Montefiore Medical Center insider breach and its HIPAA implications, refer to this case summary.
Excellus Health Plan (2021): Prolonged Undetected Cyberattack
What happened: Excellus Health Plan suffered a data breach that exposed the personal information of over 9 million individuals. The attackers maintained access to the insurer’s IT systems for more than 18 months before being detected.
What went wrong: A federal investigation found that Excellus failed to conduct a comprehensive enterprise-wide risk analysis, and did not implement measures to reduce known vulnerabilities, violating several aspects of the HIPAA Security Rule.
Why it matters: The longer a breach goes undetected, the higher the risk to affected individuals—and the greater the liability for the organization. OCR ultimately settled with Excellus for $5.1 million.
What you can do:
Risk analysis is not a one-time project. Conduct annual or ongoing assessments, use network segmentation, maintain intrusion detection systems, and regularly patch software and firmware.
Learn more about the Excellus Health Plan data breach and its HIPAA compliance consequences in this official case overview.
HIPAA violations often stem from everyday mistakes like unencrypted devices or misdirected emails. These issues may go unnoticed for months, increasing the risk of penalties. Regular compliance reviews help identify gaps early, correct them, and reduce exposure before regulators intervene. Building these checks into your annual operations supports long-term compliance.
How to Protect Your Organization from Becoming a Headline
Avoiding a HIPAA breach requires more than reactive policy updates. It takes a well-maintained, proactive security and compliance program to catch gaps before regulators or attackers do. Here are five essential practices to protect your organization from becoming the subject of a breach investigation or OCR fine.
1. Conduct Regular HIPAA Risk Assessments
A HIPAA risk assessment is a required safeguard under the HIPAA Security Rule. All covered entities and business associates must regularly evaluate potential ePHI risks and vulnerabilities.
Effective risk assessments should:
- Identify systems, devices, and vendors storing/transmitting PHI.
- Evaluate existing safeguard effectiveness.
- Prioritize threats by likelihood and impact.
- Document findings, remediation plans, and implementation status.
Get a free consultation with one of our HIPAA security experts to better understand how NIST standards support HIPAA risk assessments.
2. Implement HIPAA’s Administrative, Technical, and Physical Safeguards
The HIPAA Security Rule outlines three core types of safeguards:
- Administrative safeguards (e.g., staff training, access control policies)
- Technical safeguards (e.g., encryption, multi-factor authentication)
- Physical safeguards (e.g., server room locks, device security)
To ensure layered defense:
- Limit access to PHI using role-based permissions.
- Encrypt all PHI at rest and in transit.
- Implement audit logging and intrusion detection.
- Secure endpoint devices and ensure clean disposal of hardware.
3. Train Employees on HIPAA Policies and Security Practices
According to HHS OCR reports, employees still remain one of the top causes of HIPAA violations. Training is mandatory under the Privacy and Security Rules and should be tailored to staff roles.
Effective HIPAA training should cover:
- What constitutes PHI and how to handle it appropriately.
- Common phishing and social engineering threats .
- Procedures for reporting a suspected breach.
- Updates whenever policies or technologies change.
4. Monitor Vendor Compliance and Execute Business Associate Agreements (BAAs)
HIPAA-covered entities must execute Business Associate Agreements (BAAs) with third parties accessing PHI on their behalf. HHS.gov states BAAs must define each party’s data safeguarding and breach reporting responsibilities.
To meet this requirement:
- Maintain a current list of all vendors with PHI access.
- Ensure each BAA is reviewed, signed, and documented.
- Evaluate vendor security practices during onboarding and renewal.
- Limit PHI access to the minimum necessary.
5. Build an Incident Response and Breach Notification Plan
Under HIPAA’s Breach Notification Rule, covered entities must notify affected individuals, HHS, and sometimes the media within 60 days of discovering a breach. Failure to do so can result in steep fines, even if the breach was unavoidable.
Your incident response plan should:
- Establish how and when security incidents are identified and escalated.
- Define roles and responsibilities for breach investigation and reporting.
- Ensure compliance with timelines and content of notifications.
- Document corrective actions and security improvements.
Avoiding HIPAA violations demands an active, evolving compliance strategy with the right tools, processes, and people. Even small gaps in training, risk oversight, or data handling can lead to serious consequences. Regular HIPAA risk assessments, strong technical safeguards, updated policies, and consistent staff training are crucial for a resilient, proactive compliance program.
Carbide offers expert support services and automation to ensure year-round HIPAA audit readiness. Reduce HIPAA compliance complexity, automate evidence collection, and build a HIPAA program that supports your long-term growth. Book a call to learn more.
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