CVS, Walgreen’s Settle With State (IN) in Patient Privacy Case

From WIBC, Indy’s News Center (7/13/09)

A state board has given final approval to settlements with Indiana’s two largest drugstore chains for leaving patient information in the trash.

CVS and Walgreen’s have stepped up employee training and tightened security procedures after patient information turned up in garbage bins behind 16 stores in Indy, Carmel, Fishers, Beech Grove and Evansville.

The State Board of Pharmacy unanimously approved settlements reached last week to lock in those promises of better security and allow state monitoring of those procedures.

The attorney general’s office began reviewing security at the drugstores after reporters in Indianapolis and Evansville found the discarded records in 2006. State officials say they know of no actual security breaches, but creating the opportunity for one violates federal patient-privacy laws. CVS has paid a $2.25 million fine to settle a probe by the U.S. Office of Civil Rights. Walgreen’s case before the OCR is still pending.

CVS will donate a $1,000 to charity as part of the state settlement, while Walgreen’s will reimburse the state $6,000 in investigative costs.

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