HIPAA: “New Twist” in Prosecution of Illegal Drug Promotion Activities Holds Important Lesson for Providers

​Government prosecution of pharmaceutical companies for alleged illegal promotion of their products has been steady for many years, and drug company Warner Chilcott, LLC, recently agreed to plead guilty and pay $125 million to resolve criminal and civil liability for healthcare fraud. The case highlights vulnerability of providers with novel prosecution for violation of the Health Insurance Portability and Accountability Act (HIPAA) privacy protections. According to a Department of Justice press release, three drug company employees have pleaded or agreed to plead guilty to criminal HIPAA violations and a physician practice owner has also been indicted for alleged unlawful access and disclosure of patient medical records in violation of HIPAA.