Court Rules
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SettlementMedium Risk

NY AG Fines US Radiology $450K for Ransomware Data Breach

US Radiology Specialists, Inc.November 8, 2023New York Attorney General

Penalty Amount

$450,000

Consumers Affected

198,260

Summary

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.

Remedy

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.

Monetary PenaltyConsent DecreeCompliance ProgramData Deletion

Contract Impact

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.

Contract Search Terms

firewall upgrade requirementdata security standardsHIPAA business associate agreementencryption policiesdata deletion policiesransomware attack responsebreach notification clauseaudit rightsservice provider security addendumIT infrastructure maintenance

Violation Types

Entity Details

Entity

US Radiology Specialists, Inc.

Also known as: US Radiology

Industry

Healthcare

Official Sources

Source Evidence

Entity Name
"US Radiology Specialists, Inc. (US Radiology)"
Fine Amount
"$450,000"
Violation Types
"did not prioritize upgrading its hardware, which left its network exposed to a known vulnerability, leading to a ransomware attack"
Consumers Affected
"198,260 patients"

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