Med Mal News

Connecticut Settles HIPAA Suit Against Insurer

In July, the office of Connecticut Attorney General Richard Blumenthal announced that the State had settled with medical insurer Health Net over a security breach that exposed 1.5 million patients' health records to possible misuse. Approximately 500,000 of the victims were Connecticut residents. The breach occurred when a computer disk containing private health and financial information was lost, possibly due to theft. To make matters worse, Health Net delayed informing the affected patients or law enforcement authorities for six months, a further violation of the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). The settlement includes a $250,000 payment to the State, as well as two years of credit monitoring and $1 million in identity theft insurance for the affected parties. In a statement accompanying the settlement announcement, Blumenthal said, “These missing medical records included some of the most personal, intimate patient information ' exposing individuals to grave embarrassment and emotional distress, as well as financial harm and identity theft. This settlement provides powerful systemic protections for consumers and payment to taxpayers.”

Doctor Sentenced for Writing Oxycodone Prescriptions for Profit

A San Fernando, CA, doctor has been sentenced to 25 years in prison and ordered to pay a fine following his conviction for overprescribing the painkiller oxycodone, often to people he did not even examine. Dr. Masoud Bamdad was convicted in May of 13 counts of a 23-count indictment that charged him with writing prescriptions for numerous individuals, including drug addicts and young people, in exchange for payments of up to $300. The scheme was uncovered when Drug Enforcement Administration agents, posing as patients, obtained prescriptions from Bamdad after brief visits to his clinic, where the doctor either did not examine the agents or performed only cursory examinations on them. Prosecutors said the doctor's criminal activity netted him more than $100,000 per month.

Bill to Cover Physician Volunteers Progresses

A bill to amend the Public Health Service Act to provide liability protection for physicians and clinical psychologists volunteering their services at federally funded health centers was passed in July by the House Energy and Commerce health subcommittee. If H.R. 1745 becomes law, these volunteers at community health centers, which are private facilities receiving federal funds, will be deemed employees of the Public Health System for purposes of malpractice coverage. As federal employees, they cannot be directly sued. Instead, claims based on their negligence will have to be brought against the United States, in accordance with the Federal Tort Claims Act (FTCA). Advocates for passage of the law say it will encourage doctors to volunteer at facilities that serve the poor. Opponents fear the inability to sue doctors directly will limit injured patients' ability to recover all that they are due, as recoveries are limited under the FTCA. The bill now goes to the full Congress for consideration.

Nevada Litigants Seek Clarification of Damage Cap Law

Nevada's Supreme Court has been asked to consider the meaning of one of the provisions of the State's 2004 tort reform law. The passage at issue, which concerns limits on non-economic damages, states: “In an action for injury or death against a provider of health care based upon professional negligence, the injured plaintiff may recover non-economic damages, but the amount of non-economic damages awarded in such an action must not exceed $350,000.” The question for the State's high court is this: Does the $350,000 limit apply to the medical malpractice event itself, capping all non-economic damages at that amount, or can multiple plaintiffs each seek up to $350,000? The case that asks the question arose after a woman died, allegedly following misdiagnosis by a doctor. She left behind not only a husband, but also six children, all of whom are seeking damages from the deceased woman's medical care providers.

Connecticut Settles HIPAA Suit Against Insurer

In July, the office of Connecticut Attorney General Richard Blumenthal announced that the State had settled with medical insurer Health Net over a security breach that exposed 1.5 million patients' health records to possible misuse. Approximately 500,000 of the victims were Connecticut residents. The breach occurred when a computer disk containing private health and financial information was lost, possibly due to theft. To make matters worse, Health Net delayed informing the affected patients or law enforcement authorities for six months, a further violation of the federal Health Insurance Portability and Accountability Act of 1996 (HIPAA). The settlement includes a $250,000 payment to the State, as well as two years of credit monitoring and $1 million in identity theft insurance for the affected parties. In a statement accompanying the settlement announcement, Blumenthal said, “These missing medical records included some of the most personal, intimate patient information ' exposing individuals to grave embarrassment and emotional distress, as well as financial harm and identity theft. This settlement provides powerful systemic protections for consumers and payment to taxpayers.”

Doctor Sentenced for Writing Oxycodone Prescriptions for Profit

A San Fernando, CA, doctor has been sentenced to 25 years in prison and ordered to pay a fine following his conviction for overprescribing the painkiller oxycodone, often to people he did not even examine. Dr. Masoud Bamdad was convicted in May of 13 counts of a 23-count indictment that charged him with writing prescriptions for numerous individuals, including drug addicts and young people, in exchange for payments of up to $300. The scheme was uncovered when Drug Enforcement Administration agents, posing as patients, obtained prescriptions from Bamdad after brief visits to his clinic, where the doctor either did not examine the agents or performed only cursory examinations on them. Prosecutors said the doctor's criminal activity netted him more than $100,000 per month.

Bill to Cover Physician Volunteers Progresses

A bill to amend the Public Health Service Act to provide liability protection for physicians and clinical psychologists volunteering their services at federally funded health centers was passed in July by the House Energy and Commerce health subcommittee. If H.R. 1745 becomes law, these volunteers at community health centers, which are private facilities receiving federal funds, will be deemed employees of the Public Health System for purposes of malpractice coverage. As federal employees, they cannot be directly sued. Instead, claims based on their negligence will have to be brought against the United States, in accordance with the Federal Tort Claims Act (FTCA). Advocates for passage of the law say it will encourage doctors to volunteer at facilities that serve the poor. Opponents fear the inability to sue doctors directly will limit injured patients' ability to recover all that they are due, as recoveries are limited under the FTCA. The bill now goes to the full Congress for consideration.

Nevada Litigants Seek Clarification of Damage Cap Law

Nevada's Supreme Court has been asked to consider the meaning of one of the provisions of the State's 2004 tort reform law. The passage at issue, which concerns limits on non-economic damages, states: “In an action for injury or death against a provider of health care based upon professional negligence, the injured plaintiff may recover non-economic damages, but the amount of non-economic damages awarded in such an action must not exceed $350,000.” The question for the State's high court is this: Does the $350,000 limit apply to the medical malpractice event itself, capping all non-economic damages at that amount, or can multiple plaintiffs each seek up to $350,000? The case that asks the question arose after a woman died, allegedly following misdiagnosis by a doctor. She left behind not only a husband, but also six children, all of whom are seeking damages from the deceased woman's medical care providers.