Hospital ER worker fired for allegedly selling patient records

https://www.beckershospitalreview.com/cybersecurity/kings-county-hospital-er-worker-fired-for-allegedly-selling-patient-records.html

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An employee at Kings County Hospital’s emergency room stole nearly 100 patients’ private information and sold it through an encrypted app on his phone, according to New York Daily News.

Orlando Jemmott, 52, has worked at the city-run Brooklyn hospital for more than 10 years, where he was in charge of charting patient demographic data into the hospital’s computer system. But between December 2014 and April 2015, he allegedly sold patient data to Ron Pruitt, 43, a buyer in Pennsylvania.

FBI agents arrested Mr. Jemmott in February after receiving a tip in June 2017. A tipster told the FBI she had learned two years earlier that Mr. Jemmott was stealing and selling health records.

Hospital officials told the publication that Mr. Jemmott sold the names of 98 patients, and he accessed the private health records of at least 88 of those patients.

Kings County fired Mr. Jemmott in April. He has been negotiating a plea deal with prosecutors since.

“We have zero tolerance for anyone who intentionally violates our patient privacy rules,” Kings County Hospital CEO Sheldon McLeod said in a written statement to the New York Daily News. “The privacy of patient information is an important foundation for the care we provide.”

 

 

Ex-Cleveland Clinic Innovation executive pleads guilty in $2.7M fraud case, prison time likely

http://www.fiercehealthcare.com/antifraud/ex-cleveland-clinics-innovation-executive-pleads-guilty-2-7m-fraud-case-prison-time?utm_medium=nl&utm_source=internal&mrkid=959610&mkt_tok=eyJpIjoiWkRSalkyTXpOV0V4WkRkayIsInQiOiJHQUVNRTJhUmhhSkpXVk80NkJoOWo5R21nNW5iV0hQS3NxRzc4SUQrbmRyMFwveXlBUFEwRm83TXFUemp0ZE9aNWlBTmYzSVJWb0dzbXV0RTczYnZSTEFMaGhEeFZKYk9LMWJuaXNxUlRUd2V6WEZnZ3lqRUpYaWp6SU0rbUhUd0cifQ==

Money, handcuffs and a stethoscope

The former head of Cleveland Clinic Innovations pleaded guilty Tuesday for his role in defrauding the nonprofit academic medical center out of more than $2.7 million via a shell company.

Gary Fingerhut was arraigned in U.S. District Court and pleaded guilty to one count of conspiracy to commit wire fraud and honest services fraud and one count of making false statements, Crain’s Cleveland Business reports.

Although he won’t be formally sentenced until Jan. 30, Fingerhut’s attorney told the publication that federal prosecutors will ask U.S. District Judge Christopher Boyko for a sentence of between 41 and 51 months in federal prison. He may also be ordered to pay restitution to the Cleveland Clinic.

Fingerhut served as the executive director of the clinic’s innovation arm for two years until an FBI investigation revealed in 2015 that he was involved in a fraudulent scheme with the chief technology officer of a spinoff company to contract with a company that never intended to perform or provide any goods and services. The deal was in violation of Cleveland Clinic’s ethics and compliance policies and requirements, which prohibit employees from receiving any financial benefit from companies the Clinic did business with, and the organization fired Fingerhut.

Federal prosecutors said Fingerhut accepted at least $469,000 in payments in return for not disclosing the fraud scheme, which diverted nearly $3 million from the Clinic.

Fingerhut’s attorney, J. Timothy Bender of Bender, Alexander & Broome in Cleveland, told Crain’s that Fingerhut is very sorry for his role in the fraud scheme.

Auditor: 15-bed Missouri hospital at heart of $90M billing fraud scheme

http://www.beckershospitalreview.com/finance/auditor-15-bed-missouri-hospital-at-heart-of-90m-billing-fraud-scheme.html

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Putnam County Memorial Hospital, a 15-bed hospital in Unionville, Mo., received $90 million in insurance payments in less than a year for lab services that were performed at other facilities across the country, according to The St. Louis Post-Dispatch, which cited a report released Wednesday by Missouri State Auditor Nicole Galloway.

According to Ms. Galloway’s report, Putnam County Memorial Hospital contracted with Hospital Laboratory Partners in September 2016 to operate a clinical laboratory on behalf of the hospital.

“Immediately upon signing the management contract with the hospital, the CEO and his associates began billing significant amounts of out-of-state lab activity through the hospital,” according to the auditor’s report.

Putnam County Hospital allegedly acted as a shell company by submitting claims for other labs and funneling the insurance payments through the hospital.

“Based on our review of hospital accounts, the vast majority of laboratory billings are for out-of-state lab activity for individuals who are not patients of hospital physicians,” states the auditor’s report.

Ms. Galloway has turned her findings over to the Missouri attorney general, the FBI and the Putnam County prosecuting attorney, according to KCUR.

On Thursday, Hospital Laboratory Partners said the auditor’s report mischaracterizes the payments. The company said Putnam County Hospital, a critical access hospital, is authorized to bill for off-site lab work.

“The assignment of non-patient lab specimens has been standard practice for rural and critical access hospitals for many years,” Hospital Laboratory Partners attorney Mark Thomas said in a statement to The Kansas City Star“The purpose of the rural/critical access exceptions is to give rural healthcare facilities a fighting chance to survive and serve their local communities.”

 

U.S., Canada issue joint alert on ‘ransomware’ after hospital attacks

http://www.reuters.com/article/us-cyber-ransomware-alert-idUSKCN0WY3BN?utm_campaign=KHN%3A+Daily+Health+Policy+Report&utm_source=hs_email&utm_medium=email&utm_content=27952388&_hsenc=p2ANqtz-8er4vMvLXZZme7-8-fNLl3T8JUYA-G-epy8OUSOcm9tpjIjfOyTF8K1gW0uy-5M6ZnqtwurcBtULgijKFEl3TeKCayyg&_hsmi=27952388

A man types on a computer keyboard in Warsaw in this February 28, 2013 illustration file picture. REUTERS/Kacper Pempel/Files

FBI v Apple: Is medical records privacy at risk?

http://www.healthcaredive.com/news/fbi-v-apple-is-medical-records-privacy-at-risk/414908/

Anatomy of a fraud bust: Collaboration creates efficiency

http://www.fiercehealthpayer.com/antifraud/story/anatomy-fraud-bust-collaboration-creates-efficiency/2015-09-29?page=full

FBI Healthcare Fraud

A Detroit FBI agent explains how large, multi-person fraud schemes unravel