Prime also sent an e-mail "to its entire workforce and medical staff, approximately 785-900 individuals" describing Courtois' medical condition, diagnosis and treatment "in detail," according to the agreement. And it failed to punish its employees who violated the law. (Congressional representatives subsequently called for a federal review of Prime hospitals for Medicare fraud.)
Last June in a Resolution Agreement with Prime hospitals, the Office of Civil Rights determined that between Dec. 13 to Dec. 20, 2011, "SRMC failed to safeguard the Affected Party's PHI (protected health information) from any impermissible intentional or unintentional disclosure on multiple occasions" with three California media outlets.
There are other consequences besides a financial penalty for healthcare organizations like Prime that dismiss or overlook the seriousness of HIPAA's prohibitions. All 16 Prime hospitals are now under a Corrective Action Plan to assure an end to privacy violations within this healthcare system.
There have been some good things to come out of all this mess. Armstrong has apologized to at least one of the parents and to other AOL employees. AOL has restored its prior 401(k) match policy. And many people in healthcare have learned an important lesson.