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5 HIPAA Violations Costing Medical Practices Millions (And How to Stop Them)

October 2, 2025

Federal regulators collected nearly $145 million in HIPAA fines since enforcement began. In 2024 alone, 22 investigations ended in penalties—one of the busiest years on record.

For medical practices across Central Illinois, the question isn’t whether you’ll be audited. It’s whether you’re ready when it happens.

The Office for Civil Rights closed 22 HIPAA investigations with financial penalties in 2024, making it among the busiest enforcement years to date. Small practices now face the same scrutiny as large health systems. In 2022, 55% of OCR’s financial penalties targeted small medical practices.

Here’s what’s putting Peoria-area practices at risk—and how to fix it.


Violation #1: Missing or Incomplete Risk Analysis

The Problem: Your practice has never conducted a thorough HIPAA risk analysis, or the last one happened years ago.

Risk analysis failures rank among the most commonly identified HIPAA violations. In OCR’s 2016-2017 audit round, most audited entities failed to comply with this Security Rule provision.

OCR launched a new enforcement initiative in 2024 specifically targeting risk analysis violations. More than half of the 22 enforcement actions in 2024 involved risk analysis failures.

Real Case: Vision Upright MRI, a small California imaging provider, paid $5,000 after OCR discovered they’d never conducted a HIPAA-compliant risk analysis. Their unsecured server exposed 21,778 patient records.

The Fix: Annual risk assessments identify where patient data lives, who can access it, and what protections exist. Facet’s compliance team conducts comprehensive assessments for medical practices throughout Central Illinois, mapping your specific vulnerabilities and creating actionable remediation plans.


Violation #2: Unencrypted Devices and Lost Data

The Problem: Laptops, tablets, and smartphones containing patient information lack encryption or password protection.

Children’s Medical Center of Dallas lost 3,800 patient records when a stolen Blackberry had no password protection or encryption. The center paid the full fine.

Theft happens. Equipment failures occur. The difference between a minor incident and a reportable breach often comes down to encryption.

The Fix: Device encryption isn’t optional anymore. Facet’s managed IT services include:

  • Mandatory encryption on all devices accessing patient data
  • Multi-factor authentication for network access
  • Remote wipe capabilities for lost or stolen devices
  • Mobile device management for staff smartphones and tablets

Our 24/7/365 monitoring catches unauthorized access attempts in real-time, with threat containment averaging under nine minutes.


Violation #3: Employees Accessing Records Without Authorization

The Problem: Staff members view patient records out of curiosity, not medical necessity.

Accessing health records for unauthorized reasons represents one of the most common HIPAA violations committed by employees. UCLA Health System paid $865,000 after a physician accessed celebrity patient records without authorization.

Most violations stem from momentary lapses by staff with limited education and understanding, particularly during routine tasks.

Real Case: Thirteen UCLA Medical Center employees were fired and six physicians suspended for accessing Britney Spears’s medical records without consent in 2008.

The Fix: Technology alone can’t solve human behavior. Facet provides:

  • Regular phishing simulations that test staff awareness
  • Security training modules tailored to medical practices
  • Access control monitoring that flags unusual record access patterns
  • Bi-weekly “Cyber Treats” newsletter with practical security tips

Research shows regular training reduces phishing risk from 60% to 10% over 12 months.


Violation #4: Delayed Patient Access to Medical Records

The Problem: Patients request their records and wait weeks—or months—for complete files.

OCR’s HIPAA Right of Access enforcement initiative, launched in late 2019, has resulted in 51 penalties for failing to provide timely access to medical records.

Real Case: Oregon Health & Science University took 16 months and two OCR interventions to provide complete records to a patient’s personal representative. OCR imposed a $200,000 penalty.

The HIPAA Privacy Rule requires records within 30 days of a request. No exceptions for staffing shortages or “difficult” patients.

The Fix: Efficient records management prevents these violations:

  • Cloud-based electronic health records with patient portals
  • Automated request tracking systems
  • Clear written procedures for records requests
  • Regular staff training on compliance timelines

Facet’s managed services include Office 365 backup solutions that ensure records remain accessible even during system failures or ransomware attacks.


Violation #5: Inadequate Firewall Protection

The Problem: Your practice uses outdated firewall equipment or lacks proper network segmentation.

Modern threats demand modern defenses. Legacy firewalls can’t detect sophisticated attacks targeting healthcare data.

The Fix: Facet’s managed firewall service provides:

  • Next-generation firewall appliances replaced every two years
  • Intrusion prevention and application control
  • Real-time threat intelligence updates
  • Complete management—no hidden replacement costs

Our hardware-as-a-service model means you never face unexpected expenses when equipment becomes obsolete. We handle configurations, updates, and proactive monitoring 24/7/365.


Why HIPAA Compliance Matters Now More Than Ever

Penalties range from $141 per violation for unknowing mistakes to $2,134,831 per violation for willful neglect, with annual caps reaching $1.5 million per violation category.

But fines tell only part of the story. HIPAA violations damage patient trust, trigger malpractice insurance increases, and create public relations nightmares. Your practice’s name appears permanently on OCR’s “Wall of Shame” breach portal, listing the offense, date, and individuals affected.

For Peoria and Central Illinois medical practices competing for patients, reputation matters.


Building a Compliance Strategy That Works

HIPAA compliance isn’t a one-time project. It requires ongoing attention across three areas:

Technical Controls: Encryption, firewalls, access controls, and monitoring systems that protect patient data 24/7.

Administrative Controls: Written policies, risk assessments, and business associate agreements that document your compliance efforts.

Physical Controls: Locked file rooms, screen privacy filters, and secure disposal procedures that prevent unauthorized access.

Facet’s approach addresses all three. We’ve helped medical practices throughout Central Illinois achieve and maintain compliance for over 30 years. Our team understands the specific challenges facing smaller practices—limited IT budgets, small staff sizes, and the need to focus on patient care rather than technology management.


Frequently Asked Questions

Q: How often should my practice conduct a HIPAA risk analysis?

A: At minimum, annually. However, you should also conduct assessments whenever you add new systems, change IT vendors, experience a security incident, or significantly modify how you handle patient data. OCR’s 2024 enforcement initiative specifically targets inadequate or infrequent risk analyses.

Q: Does HIPAA require encryption?

A: Not explicitly. However, HIPAA requires security measures sufficient to reduce risks to a reasonable level. If you don’t use encryption, you must implement equivalent safeguards to protect electronic patient information. Most OCR settlements involving lost or stolen devices cite lack of encryption as a violation.

Q: Can small practices really afford HIPAA-compliant IT?

A: You can’t afford not to. A single violation can cost more than years of proper IT security. Facet structures services specifically for small and mid-size practices, with transparent monthly pricing that includes security tools many providers charge extra for—like multi-factor authentication, managed firewalls, and employee training.

Q: What happens if we discover a potential HIPAA violation?

A: You have 60 days to report breaches affecting 500 or more individuals. Smaller breaches must be reported annually. Failure to report breaches represents a separate HIPAA violation. Facet’s incident response team helps practices assess potential breaches, determine reporting requirements, and implement corrective actions quickly.

Q: How do I know if my current IT provider is keeping me HIPAA compliant?

A: Ask these questions:

  • When was our last comprehensive risk analysis?
  • Are all devices accessing patient data encrypted?
  • Do we have signed business associate agreements with all vendors?
  • How quickly can we provide patients with their medical records?
  • What monitoring protects our network 24/7?

If your provider can’t answer immediately, you may have gaps.


Your Next Step

HIPAA violations are preventable. The practices paying six-figure penalties didn’t set out to break the rules—they simply didn’t know what they didn’t know.

Facet Technologies has protected medical practices across Central Illinois for three decades. Our team knows the specific challenges you face. We’ve helped practices of all sizes—from solo practitioners to multi-location clinics—achieve HIPAA compliance without breaking their budgets.

Schedule a free HIPAA compliance consultation with our team. We’ll assess your current posture, identify immediate risks, and provide a checklist of action items—even if you choose not to work with us.

Because your patients trust you with their most sensitive information. You should trust your IT partner to protect it.

Contact Facet Technologies:

  • Call: (309) 689-3900
  • Email: info@facettech.com
  • Visit: facettech.com/contact-us

Located in Peoria, serving medical practices throughout Central Illinois.


Sources

  1. HIPAA Journal. “HIPAA Violation Fines – Updated for 2025.” https://www.hipaajournal.com/hipaa-violation-fines/
  2. U.S. Department of Health and Human Services. “Enforcement Highlights – Current.” https://www.hhs.gov/hipaa/for-professionals/compliance-enforcement/data/enforcement-highlights/index.html
  3. HIPAA Journal. “Healthcare Data Breach Statistics.” https://www.hipaajournal.com/healthcare-data-breach-statistics/
  4. HIPAA Journal. “HIPAA Violation Cases – Updated 2024.” https://www.hipaajournal.com/hipaa-violation-cases/
  5. HIPAA Journal. “The Most Common HIPAA Violations You Must Avoid – 2025 Update.” https://www.hipaajournal.com/common-hipaa-violations/
  6. National Center for Biotechnology Information. “Health Insurance Portability and Accountability Act (HIPAA) Compliance.” https://www.ncbi.nlm.nih.gov/books/NBK500019/
  7. Secureframe. “HIPAA Violation Examples in 2025: 20 Common Violations With Real-World Enforcement Cases.” https://secureframe.com/hub/hipaa/violations

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