Providence Medical Institute Notice of Final Determination

U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES
Office for Civil Rights
Office of the Secretary
Hubert H. Humphrey Building
200 Independence Avenue, S.W.
Washington, D.C. 20201
http://www.hhs.gov/ocr

July 1, 2024

Via Email and Certified Mail (Return Receipt Requested)

Rod Hochman, MD, President & CEO
Providence Medical Institute
3400 Aerojet Ave., Suite 323
El Monte, CA 91731
rod.hochman@providence.org

Re:       Providence Medical Institute
             OCR Transaction Number: 18-303126

Notice of Final Determination

Dear Rod Hochman, MD:
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 $240,000.00 against Providence Medical Institute (PMI) is final. This letter also contains instructions for PMI to make payment of the CMP amount.

I.         PMI is Waiving the Right to Request a Hearing Before an Administrative Law Judge and Petition for Judicial Review

By letter dated March 29, 2024, OCR issued PMI a Notice of Proposed Determination (attached hereto), informing PMI that OCR was proposing to impose a CMP in the amount of $240,000.00 based on the findings of the facts of noncompliance specified in the letter. The Notice of Proposed Determination stated that PMI has a right to request a hearing on the proposed CMP within ninety (90) days of the date of receipt of the letter and provided instructions on requesting a hearing with the Departmental Appeals Board. The Notice of Proposed Determination further advised that failure to request a hearing within this time period could result in the imposition of the proposed CMP without a hearing under 45 C.F.R. § 160.504 or the right of appeal under 45 C.F.R. § 160.548. PMI received the Notice of Proposed Determination on March 29, 2024, via email, and on March 29, 2024, via a duly registered process server.

By letter dated June 27, 2024, sent via email to OCR, PMI’s counsel advised that PMI waives its right to a hearing pursuant to 45 C.F.R. §160.420(b), is not contesting OCR’s proposed determination, and will pay the $240,000.00 CMP. Accordingly, by operation of PMI’s waiver of its procedural rights to challenge the CMP under 45 C.F.R. Part 160 Subparts D and E and 42 U.S.C. § 1320a-7a, the CMP referenced above is now final. Therefore, pursuant to the authority delegated by the Secretary of HHS to the Director of OCR, I am authorized to impose the CMP against PMI in the full amount of $240,000.00, as set forth in the Notice of Proposed Determination.

II.         No Right of Appeal

PMI has no right to appeal the imposition of the CMP under 45 C.F.R. § 160.548 since PMI chose to waive its right to appeal OCR’s proposed determination and its right to request a hearing.

III.         Instructions for Payment of the CMP Amount

Payment of the full and aggregate amount of $240,000.00 is due upon PMI’s receipt of this Notice of Final Determination. Payment can be made in accordance with the instructions enclosed with this Notice.

IV.         Consequences of Nonpayment

In the event that payment is not received upon PMI’s receipt of this Notice of Final Determination, a civil action may be brought in the United States District Court to recover the amount of the penalty.

V.         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 of HHS 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) of HIPAA. The 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 Emily Crabbe, OCR Senior Advisor, at (404) 562-7878.

Sincerely,

/s/

Melanie Fontes Rainer
Director 
Office for Civil Rights
U.S. Department of Health and Human Services

Enclosed:
Payment Instructions
Notice of Proposed Determination (March 29, 2024)

CC: Iliana Peters, ipeters@polsinelli.com