Penalty Amount
$450,000
Consumers Affected
198,260
US Radiology Specialists, Inc. failed to upgrade its firewall, leading to a ransomware attack that compromised the personal and health data of over 198,000 patients, including 92,000 New Yorkers. The company agreed to pay $450,000 in penalties and implement comprehensive data security measures, including encryption and data deletion policies.
US Radiology must pay $450,000 in penalties, enhance its information security program, create an IT asset management program, encrypt patient data, implement penetration testing, and delete unnecessary personal data.
In-house legal teams should review all vendor and service provider agreements, particularly those involving healthcare data processing or radiology services. Focus on clauses mandating specific data security standards (e.g., firewall maintenance, encryption), breach notification timelines and procedures, data retention and deletion policies, and audit rights to verify compliance. Given the entity's role as a service provider to facilities like Windsong Radiology, agreements must explicitly require adherence to HIPAA and state data security laws, with provisions for mandatory security upgrades and regular vulnerability assessments. Contracts may need amendments to include concrete technical requirements (e.g., timely patching of known vulnerabilities) and indemnification terms for data breaches resulting from inadequate security.
Entity
US Radiology Specialists, Inc.
Also known as: US Radiology
Industry
HealthcareOfficial Press Release
https://ag.ny.gov/press-release/2023/attorney-general-james-secures-450000-medical-company-providing-services-western
us radiology aod
https://ag.ny.gov/sites/default/files/settlements-agreements/us-radiology-aod.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"US Radiology Specialists, Inc. (US Radiology)"
"$450,000"
"did not prioritize upgrading its hardware, which left its network exposed to a known vulnerability, leading to a ransomware attack"
"198,260 patients"
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