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Healthcare Data Breaches Remain High as New Risks Emerge

Healthcare organizations continue to face significant data protection challenges in 2026, despite occasional monthly declines in breach reports. Through August, organizations reported approximately 593 large breaches to the HHS Office for Civil Rights (OCR). These breaches affected 500 or more individuals each and represented a 6.7% increase compared with the previous year. The incidents exposed protected health information (PHI) belonging to approximately 78.6 million people. That figure increased 14.8% compared with the same period in 2025.

Hacking and IT incidents continue to dominate breach reports. However, attackers and workforce members increasingly expose information through different pathways. Third-party vendors and business associates account for a growing share of reports. Unauthorized AI use also creates risks alongside ransomware and phishing.

Recent Incidents and Settlements

iRhythm Technologies reported a June 2026 incident involving business applications that a third party hosted. Attackers used social engineering to gain unauthorized access. OCR portal filings identify more than 8.1 million affected individuals. Compromised information included names, contact details, birth dates, insurance numbers, account or device serial numbers, and service dates. According to reports, the incident did not affect clinical systems or devices.

AdaptHealth disclosed a hacking incident that exposed information belonging to more than 4.1 million individuals. The incident ranks among the year’s larger breach reports.

Lehigh Valley Health Network agreed to an $800,000 OCR settlement involving a 2023 ransomware incident. The attack affected 248,359 individuals. The settlement marked OCR’s 22nd ransomware enforcement action. OCR identified potential failures involving risk analysis, system activity reviews, and timely notifications to individuals and HHS. The organization also agreed to a $65 million settlement resolving related class-action litigation. Attackers stole sensitive clinical information, including some images of patients undergoing treatment.

Ambry Genetics agreed to a $700,000 settlement following a phishing attack affecting approximately 225,000 individuals. OCR identified deficiencies involving risk analysis, access termination, and unique user identification.

Patient Access Remains an Enforcement Priority

OCR continues to pursue complaints involving delayed patient access to medical records. Pennsylvania dental practice Shen Smiles paid $140,000, while Azul Vision paid $50,000. Both cases involved delays in providing patients with their records. These settlements reinforce OCR’s continued focus on patient access rights.

Emerging Risk: Unauthorized AI Use

A Johns Hopkins Bayview Medical Center staff member uploaded a spreadsheet to an unapproved public AI tool. The spreadsheet contained information about 3,182 patients who received admissions or treatments between May and September 2026. The information may have included names, medical record numbers, account numbers, admission dates, departments, medications, and provider names. The hospital reported that the information excluded Social Security numbers and financial account details. The hospital discovered the issue that same day. It directed deletion of the prompt and file, contacted the vendor, and began notifying patients. The hospital also offered credit monitoring.

This incident highlights the risks employees create when they use unauthorized AI tools for analysis or summarization. Uploading PHI outside approved systems can trigger breach assessments, notification obligations, and regulatory scrutiny. Organizations must also determine whether vendors retain copies after users delete uploaded information.

Common Gaps in OCR Investigations

OCR settlements repeatedly identify foundational weaknesses.

Organizations often fail to:

  • Complete thorough risk analyses and update them as circumstances change.
  • Implement effective access controls and audit logging.
  • Notify affected individuals and regulators promptly.
  • Establish clear policies for workforce use of new technologies.

Third-party involvement also remains a significant concern across recent large breaches.

Practical Steps for Healthcare Leaders

  1. Keep risk analysis current. Document findings and maintain a risk management plan that addresses identified vulnerabilities.
  2. Establish clear AI rules. Identify approved tools, restrict PHI uploads, and explain the risks of public platforms.
  3. Strengthen vendor oversight. Request evidence of risk assessments, establish incident reporting expectations, and maintain appropriate contractual safeguards.
  4. Improve notification procedures. Assign responsibilities, track deadlines, and address reporting requirements during incident response planning.
  5. Monitor patient access requests. Train staff, document requests, and resolve delays before they generate complaints.

Build Ongoing Accountability

The volume of incidents and affected individuals remains high even as monthly counts fluctuate. Organizations that invest in continuous risk assessment, clear technology governance (especially around AI), and disciplined vendor management are better positioned to reduce both the likelihood of incidents and the severity of regulatory and litigation outcomes when they occur.

When did your organization last review and update its HIPAA Security Risk Analysis?

At Aris Medical Solutions, our HIPAA Keeper™ cloud-based platform makes HIPAA compliance simple. It guides your organization through every requirement with a clear, step-by-step process. From risk analyses, risk management, policies to employee training, and required documentation, you’ll have everything needed to remain compliant, protected, and audit-ready. Best of all, your HIPAA Compliance Officer is never on their own. Every client has access to a Certified HIPAA Security Analyst who provides expert guidance, answers questions, and helps ensure your compliance program is implemented correctly.

Schedule your HIPAA compliance review today and protect your organization from the next data breach.

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Another Phishing Attack results in a $600,000 settlement

PIH Health, Inc. (PIH), a California health care network, has agreed to pay the OCR $600,000. The violations stem from an email phishing attack that exposed unsecured electronic protected health information (ePHI).

The settlement resolves an investigation that OCR conducted after receiving a breach report from PIH in January 2020. The breach report stated that in June 2019, a phishing attack compromised forty-five of its employees’ email accounts, resulting in the breach of 189,763 individuals’ unsecured ePHI. PIH reported that the ePHI disclosed in the phishing attack included affected individuals’ names, addresses, dates of birth, driver’s license numbers, Social Security numbers, diagnoses, lab results, medications, treatment and claims information, and financial information.

“Hacking is one of the most common types of large breaches reported to OCR every year,” said OCR Acting Director Anthony Archeval. “HIPAA-regulated entities need to be proactive and remedy the deficiencies in their HIPAA compliance programs before those deficiencies result in the impermissible disclosure of patients’ protected health information.”

Under the terms of the resolution agreement, PIH has agreed to implement a corrective action plan that will be monitored by OCR for two years and paid a $600,000 settlement to OCR. Under the corrective action plan, PIH is obligated to take definitive steps toward resolving potential violations of the HIPAA Rules, including:

  • Conducting an accurate and thorough risk analysis of the potential risks and vulnerabilities to the confidentiality, integrity, and availability of its ePHI.
  • Developing and implementing a risk management plan to address and mitigate security risks and vulnerabilities identified in its risk analysis.
  • Developing, maintaining, and revising, as necessary, its written policies and procedures to comply with the HIPAA Rules.
  • Training its workforce members who have access to PHI on its HIPAA policies and procedures.

Phishing attacks continue to pose a significant threat to the healthcare industry, exploiting human error to gain unauthorized access to sensitive patient data. These attacks typically involve deceptive emails or messages that trick staff into revealing login credentials, clicking malicious links, or downloading malware.

Due to the high value of protected health information (PHI) on the black market, healthcare organizations are prime targets for cybercriminals. Successful phishing breaches can lead to widespread data exposure, operational disruption, regulatory penalties, and loss of patient trust.

In recent years, the U.S. Department of Health and Human Services’ Office for Civil Rights (OCR) has intensified enforcement actions against healthcare entities that fail to implement adequate phishing defenses, such as employee training, risk assessments, and email security tools. As phishing tactics grow more sophisticated, healthcare organizations must prioritize a layered cybersecurity approach to protect against these persistent threats.

Securing email accounts is critically important, especially in sectors like healthcare, where sensitive information is routinely exchanged. Email is often the gateway to an organization’s internal systems and can serve as a direct path for cybercriminals to access protected health information (PHI), financial data, and other confidential content. Unsecured email accounts are particularly vulnerable to phishing attacks, credential theft, and unauthorized access, all of which can lead to data breaches, regulatory fines, and reputational damage.

What to do to prevent a Breach?

Implementing strong passwords, multi-factor authentication (MFA), encryption, and regular staff training are essential steps in safeguarding email communications. By fortifying email security, organizations not only reduce the risk of cyberattacks but also demonstrate a proactive commitment to protecting patients, and organizational data.

OCR recommends that health care providers, health plans, health care clearinghouses, and business associates that are covered by HIPAA take the following steps to mitigate or prevent cyber-threats:

  • Review all vendor and contractor relationships to ensure business associate agreements are in place as appropriate and address breach/security incident obligations.
  • Integrate risk analysis and risk management into business processes regularly.
  • Ensure audit controls are in place to record and examine information system activity.
  • Implement regular review of information system activity.
  • Utilize multi-factor authentication to ensure only authorized users are accessing ePHI.
  • Encrypt ePHI to guard against unauthorized access to ePHI.
  • Incorporate lessons learned from incidents into the overall security management process.
  • Provide training specific to organization and job responsibilities and on regular basis; reinforce workforce members’ critical role in protecting privacy and security.

If you need assistance with HIPAA Compliance, check out our HIPAA Keeper™. Our online compliance system has everything you need to get compliant and stay compliant. Your HIPAA Compliance Officer will have a HIPAA security analyst to guide and assist them every step of the way!

For more information or to speak to someone about HIPAA Compliance call us at 877.659.2467 or use the contact us form.

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