Court Rules
All enforcement actions
SettlementMedium Risk

NJ AG Settles with Best Medical Transcription for $200K Over HIPAA Breach

ATA Consulting LLCNovember 2, 2018New Jersey Attorney General

Penalty Amount

$200,000

Consumers Affected

1,654

Summary

ATA Consulting LLC, operating as Best Medical Transcription, settled for $200,000 over a 2016 server misconfiguration that publicly exposed health records of up to 1,654 patients. The settlement includes civil penalties and permanently bars the owner from operating a business in New Jersey. The breach violated HIPAA and the New Jersey Consumer Fraud Act due to inadequate security and failure to promptly notify affected individuals.

Remedy

Defendants must pay $200,000 in civil penalties and costs, with $30,508 due within 30 days and the remainder suspended upon compliance. Owner Tushar Mathur is permanently enjoined from owning, managing, or holding a leadership position in any New Jersey business.

Monetary PenaltyInjunction

Contract Impact

In-house legal teams should review all vendor and business associate agreements where the vendor handles protected health information (PHI), particularly medical transcription services. Focus on clauses mandating compliance with HIPAA security and privacy rules, specific technical security requirements (e.g., encryption, access controls), breach notification timelines (including 'without unreasonable delay' standards), and data retention/destruction provisions. Agreements may need amendments to require mandatory security audits, stronger password/authentication protocols for web portals, and explicit indemnification for HIPAA violations. Customer agreements with healthcare clients should also be checked for flow-down security obligations and liability caps related to data breaches.

Contract Search Terms

HIPAA Business Associate Agreementdata security requirementsbreach notification clausedata processing addendumencryption standardsaccess controlsaudit rightssubprocessor managementdata retention scheduleincident response plan

Laws Cited

Health Insurance Portability and Accountability ActNew Jersey Consumer Fraud Act

Violation Types

Entity Details

Entity

ATA Consulting LLC

Also known as: Best Medical Transcription

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"ATA Consulting LLC, which did business as Best Medical Transcription"
Fine Amount
"a $200,000 settlement"
Laws Cited
"federal Health Insurance Portability and Accountability Act (“HIPAA”)"
Laws Cited
"New Jersey Consumer Fraud Act (“CFA”)"
Violation Description
"in connection with a server misconfiguration that publically exposed the private health information"

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