DataBreaches.Net

Menu
  • About
  • Breach Notification Laws
  • Privacy Policy
  • Transparency Report
Menu

Cottage Health System Pays $2m to Settle California Charges Over Data Breaches

Posted on November 23, 2017 by Dissent

In December 2013, Cottage Health System disclosed a breach involving PHI. Two years later, we learned of a second breach. And now two years after that, we hear that Cottage Health has settled charges arising from those breaches. From the state’s press release:

California Attorney General Xavier Becerra Wednesday announced a $2 million settlement with Cottage Health System and its affiliated hospitals in California resolving allegations that they failed to implement basic, reasonable safeguards to protect patient medical information in violation of state and federal privacy laws. The settlement requires Cottage to maintain security practices and procedures to protect patients’ medical information from unauthorized access or disclosure. This settlement follows two separate data breach incidents by Cottage Health where more than 50,000 patients’ medical information was made publicly available online.

“When patients go to a hospital to seek medical care, the last thing they should have to worry about is having their personal medical information exposed. The law requires health care providers to protect patients’ privacy. On both of these counts, Cottage Health failed,” said Attorney General Becerra.

In this action, the Attorney General’s Office alleged that Cottage Health System, a not-for-profit based in Santa Barbara, California, failed to adequately protect patient records. Cottage was notified in December 2013 that patients’ confidential medical information was viewable online. One of the company’s servers with medical records for more than 50,000 patients was connected to the internet without encryption, password protection, firewalls, or permissions that would have prevented unauthorized access. In 2015, during the Attorney General’s investigation of the first breach, Cottage Health experienced a second data breach in which the records for 4,596 patients became accessible online for nearly two weeks. The Attorney General’s Office alleged that Cottage’s security failures violated California’s Confidentiality of Medical Information Act and Unfair Competition Law, as well as the federal Health Insurance Portability and Affordability Act.

Under the settlement announced today, Cottage Health is required to pay a $2 million penalty and upgrade its data security practices. Cottage Health is required to protect patients’ medical information from unauthorized access and disclosure and to maintain an information security program that meets reasonable security practices and procedures for the healthcare industry. It must designate an employee to serve in the capacity of a Chief Privacy Officer and to complete periodic risk assessments.

Attorney General Becerra is committed to protecting consumer and individual privacy through civil prosecution of state and federal privacy laws.

Category: Health Data

Post navigation

← Dalhousie University warns 20,000 of potential information breach
AU: Data breach hits Department of Social Services credit card system →

Now more than ever

"Stand with Ukraine:" above raised hands. The illustration is in blue and yellow, the colors of Ukraine's flag.

Search

Browse by Categories

Recent Posts

  • Ex-NSA bad-guy hunter listened to Scattered Spider’s fake help-desk calls: ‘Those guys are good’
  • Former Sussex Police officer facing trial for rape charged with 18 further offences relating to computer misuse
  • Beach mansion, Benz and Bitcoin worth $4.5m seized from League of Legends hacker Shane Stephen Duffy
  • Fresno County fell victim to $1.6M phishing scam in 2020. One suspected has been arrested, another has been indicted.
  • Ransomware Attack on ADP Partner Exposes Broadcom Employee Data
  • Anne Arundel ransomware attack compromised confidential health data, county says
  • Australian national known as “DR32” sentenced in U.S. federal court
  • Alabama Man Sentenced to 14 Months in Connection with Securities and Exchange Commission X Hack that Spiked Bitcoin Prices
  • Japan enacts new Active Cyberdefense Law allowing for offensive cyber operations
  • Breachforums Boss “Pompompurin” to Pay $700k in Healthcare Breach

No, You Can’t Buy a Post or an Interview

This site does not accept sponsored posts or link-back arrangements. Inquiries about either are ignored.

And despite what some trolls may try to claim: DataBreaches has never accepted even one dime to interview or report on anyone. Nor will DataBreaches ever pay anyone for data or to interview them.

Want to Get Our RSS Feed?

Grab it here:

https://databreaches.net/feed/

RSS Recent Posts on PogoWasRight.org

  • Massachusetts Senate Committee Approves Robust Comprehensive Privacy Law
  • Montana Becomes First State to Close the Law Enforcement Data Broker Loophole
  • Privacy enforcement under Andrew Ferguson’s FTC
  • “We would be less confidential than Google” – Proton threatens to quit Switzerland over new surveillance law
  • CFPB Quietly Kills Rule to Shield Americans From Data Brokers
  • South Korea fines Temu for data protection violations
  • The BR Privacy & Security Download: May 2025

Have a News Tip?

Email: Tips[at]DataBreaches.net

Signal: +1 516-776-7756

Contact Me

Email: info[at]databreaches.net

Mastodon: Infosec.Exchange/@PogoWasRight

Signal: +1 516-776-7756

DMCA Concern: dmca[at]databreaches.net
© 2009 – 2025 DataBreaches.net and DataBreaches LLC. All rights reserved.