Common use of Covered Conduct Clause in Contracts

Covered Conduct. On June 10, 2009, Dr. ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇ filed a complaint with HHS against Parkview, Complaint Number 09-99157 (“the Complaint”), alleging that Parkview had violated the Privacy Rule. On May 16, 2011, HHS began investigating the allegations in the Complaint alleging that the Covered Entity is in violation of the Privacy Rule. HHS’s investigation indicates that the following conduct occurred (“Covered Conduct”): 1. In September 2008, Parkview received and took custody and control of medical records pertaining to approximately 5,000 to 8,000 of ▇▇. ▇▇▇▇▇▇▇▇’▇ patients, all of which contained protected health information (PHI) in non-electronic form. Parkview was assisting ▇▇. ▇▇▇▇▇▇▇▇ to transition the patients to new providers, and was considering the possibility of purchasing some of the records from ▇▇. ▇▇▇▇▇▇▇▇, who was retiring and closing her practice. 2. Parkview was required by 45 C.F.R. §164.530(c) to appropriately and reasonably safeguard the PHI throughout the time the PHI was in Parkview’s possession and was maintained by Parkview until the PHI was permissibly transferred in accordance with 45 C.F.R. §164.502 or rendered unreadable, unusable or indecipherable to unauthorized persons. 3. On June 4, 2009, Parkview failed to appropriately and reasonably safeguard the PHI, when Parkview employees, with notice that ▇▇. ▇▇▇▇▇▇▇▇ had refused delivery and was not at home, delivered and left 71 cardboard boxes of these medical records unattended and accessible to unauthorized persons on the driveway of ▇▇. ▇▇▇▇▇▇▇▇’▇ home, within 20 feet of the public road and a short distance away (four doors down) from a heavily trafficked public shopping venue.