009: HIPAA Infractions


This case study profiles Allscripts Healthcare Solutions and a start-up healthcare company. Leaders of the startup learned that industry changes exposed the company, its team members, and leaders to risk. When government investigators started to bring down competitors, the fast-growing startup wanted to create an exit strategy to protect investors. Results of the government investigation impeded the plan, resulting in a lower sales price for the company. 

When the acquirer purchased the company, it assumed liability. Along with a reduced  purchase price, the acquirer accepted the possibility of legal complications. To settle the legal problems, the acquirer agreed to pay a massive fine, to enhance compliance, and to cooperate fully with investigators. 

All of the information in this case study comes from the Department of Justice press release and other articles referenced below.

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