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Health system's 4 million patient data breach leads to biggest settlement ever

(CNBC) One of the nation's biggest health-care systems has agreed to pay the largest settlement ever by a single entity for potential violations of federal patient privacy law, related to breaches that compromised the electronic data of 4 million patients.
Advocate Health Care Network, which operates 12 hospitals and more than 200 other treatment locations in Illinois, will pay $5.55 million to the U.S. Health and Human Services Department as part of the settlement announced by HHS on Thursday.
Advocate Health Care, which remains under investigation for the data breaches at a subsidiary by the Illinois Attorney General's office, also will be required to adopt a corrective action plan for its data security. The breaches, two of which involved thefts of computers, occurred at a physicians' group that is the largest in the Chicago area.
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