The Department of Health and Human Services' Office for Civil Rights (OCR) opened an investigation of Adult & Pediatric Dermatology, P.C. (APDerm) after a report was made regarding the theft of an unencrypted flash drive. To settle potential violations of the Health Insurance Portability and Accountability Act of 1996 (HIPAA) Privacy, Security, and Breach Notification Rules, APDerm is to pay $150,000 to OCR and will be required to put into effect a corrective action plan to amend shortcomings in its HIPAA compliance program.

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