Civil Money Penalty issued to Cignet Health of Prince George's County, MD

Letterhead: US Department of Health and Human Services, Office of the Secretary, Office for Civil Rights, Washington, DC 20201 February 4,2011 Via Certified Mail. U.S. Postal Service. Return Receipt Requested Daniel E. Austin, M.D. Cignet Health Center 3710 Riviera Street, Suite Al Temple Hills, Maryland 20784 Re: Our Reference Numbers: 09-93069 09-91526 09-90503 09-96696 09-90182 09-90953 09-90241 09-90424 09-98630 09-92953 09-101250 09-91532 09-96674 09-96603 09-89994 10-107013 09-95813 09-102669 09-100259 09-100874 10-103417 09-101674 09-96357 09-90294 09-93174 09-92307 09-93177 09-94133 09-95812 09-98001 09-96464 09-91923 09-98636 09-102389 09-93265 09-95273 09-96365 09-96796 NOTICE OF FINAL DETERMINATION Dear Dr. Austin: Pursuant to the authority delegated by the Secretary of the United States Department of Health and Human Services (HHS) to the Director of the Office for Civil Rights (OCR), I am writing to inform you that the civil money penalty (CMP) of $4,351,600 against Cignet Health d/b/a Uplift Medical, P.C., Cignet Health Center, Cignet Health Plan, and/or Cignet Healthcare (hereinafter referred to as "Cignet") is final. This letter also contains instructions for Cignet to make payment of the CMP amount. I. Failure to Request a Hearing By my letter dated October 20,2010 (Notice of Proposed Determination, which is attached hereto), Cignet was notified of the proposed CMP of $4,351,600 and the fmdings offact fonning the basis for the CMP. The Notice of Proposed Determination notified Cignet of its right to request a hearing on the proposed CMP and gave instructions for Cignet to request a hearing within 90 days. The Notice of Proposed Detennination stated that Cignet's failure to request a hearing within that time period permitted the imposition of the proposed CMP without the right to a hearing under 45 C.F.R. § 160.504 or the right of appeal under 45 C.F.R. § 160.548. Cignet received the Notice of Proposed Determination on October 25, 201 O. The 90-day time period to request a hearing expired on January 24, 2011. Cignet did not file a request for a hearing by that date in accordance with the instructions in the Notice of Proposed Determination. Since Cignet did not request a hearing and there has been no settlement of the matter, I have determined that the imposition of the CMP in the amount of $4.351,600 is now final (45 C.F.R. § 160.422). Because Cignet did not timely request a hearing, it no longer has the right to appeal this penalty (45 C.F.R. § 160.422). II. Instructions for Payment of the CMP Amount Payment of the full and aggregate amount of $4.351.600 is due upon Cignet's receipt of this Notice of Final Detennination. Payment can be made by electronic funds transfer in accordance with the instructions on Exhibit 1 to this Notice. III. Consequences of Nonpayment In the event that payment is not received by certified check or wire funds transfer upon Cignet's receipt of this Notice of Final Detennination, the amount ofthe penalty may be deducted from any sum then or later owing by the United States or by a State agency, and a civil action may be brought in the United States District Court to recover the amount of the penalty. IV. The Legal Basis for This Action This action is being taken under the Health Insurance Portability and Accountability Act of 1996 (HIPAA), § 262(a), Pub.L. 104-191, 110 Stat. 1936, as amended, codified at 42 U.S.C. § 1320d-5, and under the enforcement regulations at 45 C.F.R. Part 160, subpart D. The Secretary ofHHS is authorized to impose CMPs (subject to the limitations at 42 U.S.C. § 1320d-5(b)) against any covered entity, as described at 42 U.S.C. § 1320d-l(a), that violates a provision of Part C (Administrative Simplification) of Title XI of the Social Security Act See 42 U.S.C. § 1320d-5(a), as amended. This authority extends to violations of the regulations commonly known as the Privacy Rule promulgated at 45 C.F.R. Part 160 and subparts A and E of Part 164, pursuant to Section 264(c) ofHIPAA. The 2 Secretary has delegated enforcement responsibility for the Privacy Rule to the Director of OCR. See Office for Civil Rights; Statement of Delegation of Authority, 65 Fed. Reg. 82381 (Dec. 28,2000). If you have any questions concerning this letter, please contact Marlene Rey, Acting Regional Manager, OCR, Region Ill, at 215-861-4441. Sincerely, Georgina Verdugo Director, Office for Civil Rights Enclosed: Exhibit 1 - EFT Instructions Attachment - Notice of Proposed Determination cc: Darrell Allen 3 \s\