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Your Privacy and Offshore Outsourcing

An anonymous reader sends in a link to this story about medical transcription work and patient privacy. You probably recall the original story (from around October 2003), but the Chronicle here does a great job of tracing the entire chain of sub-sub-sub-sub-sub-contracting.

76 of 236 comments (clear)

  1. why do i care by the_unknown_soldier · · Score: 2, Funny

    if some indian knows i have genital herpes..... i mean, the whole of slashdot knows!

  2. Rather have it offshore by EmbeddedJanitor · · Score: 4, Informative

    I'd rather have some person in India or where ever know I've got some embarrassing disease than the gossippy old cow that lives over the road.

    --
    Engineering is the art of compromise.
    1. Re:Rather have it offshore by robbyjo · · Score: 3, Insightful

      Well, if this person decided to publish the record on the web and do Google bombing to crank up the search on certain keywords, it would come worse than your gossipy old cow....

      --

      --
      Error 500: Internal sig error
    2. Re:Rather have it offshore by rodgerd · · Score: 5, Insightful

      And you could then have her dealt with under US law. What's the US going to do to get the Indian? Invade? Shit, most of your Army's tied up in a country with 20 million people and no WMDs; the Pentagon isn't going to go after a nuclear power for the sake of your medical records.

    3. Re:Rather have it offshore by rodgerd · · Score: 2, Interesting

      Since the US has been attacking the EU over its implementation of precisely the sorts of laws you're talking about the US would be in a poor position negotiating with the EU if it did so.

      How long before they'd be attacked as a non-taffic barrier under NAFTA or WTO rules?

  3. the point to be made here by mandalayx · · Score: 5, Interesting
    Before we get to all the anti-India comments, here is the crux of the problem:
    "The problem is not that they're in India," said Chris Hoofnagle, associate director of the Electronic Privacy Information Center in Washington. "The problem is that American laws are not going to be enforced in India."


    Does anyone have a free-market solution to this? I would hate to see Democrats legislate this to hell. IMHO overlegislation will solve 1 problem but cause another...

    But while the above point is interesting, it's somewhat irrelevant to this case: the breach of contract occured in the US:

    A Transcription Stat worker, Dennis Centore, quickly traced the files to a batch of notes that had been subcontracted to a woman in Florida named Sonya Newburn, who typically handled as many as 30 files on individual UCSF patients every day.

    "She was quiet until I mentioned Tom Spires," Centore recalled. "Then she said, 'Oh my God,' and said that she had contracted for Tom to do the work."

    Neither Transcription Stat nor UCSF knew that Newburn was subcontracting. The outsourcing chain was supposed to end with her, as per Newburn's contract with the Sausalito firm.


    Basically, while the article brings up the interesting concept of what offshoring information can do, this particular case of offshoring is really not the greatest example, since the breach of contract occured in the US. And yet we have sensationalist newspapers like the Chronicle and opportunistic politicians who call themselves privacy advocates; the current state of affairs is fucked. The comment leads me to believe that he didn't even RTFA:

    "We've reached the point where American companies ship personal information outside the country and tell customers to check their privacy at the shore," said Rep. Edward Markey, D-Mass., one of the leading privacy advocates on Capitol Hill.
    1. Re:the point to be made here by Rick+Zeman · · Score: 2, Insightful

      Before we get to all the anti-India comments

      Can we bash Pakistan instead?

    2. Re:the point to be made here by Anonymous Coward · · Score: 5, Interesting

      That's true of course, but the information was still held hostage by someone who didn't own it, in fact had no right to have it, in another country.

      Which is the real point of outsourcing I think. The advantage of cheaper labor is something of a smokescreen. I think it's popularity stems from the diffusion of responsability, and the complications of getting information, and enforcing practices in other countries.

      She can go in an say, but I didn't know. I was swamped with work, people deserve to have this thing done, Tom was highly recommended and trustworthy, I can't be blamed for holding information hostage! I'm a good person I never have and never would do that. This other sort of innocuous thing is my fault, and I am SOOOO SORRY.

      If we put in a type of liability where the ends don't justify the means, but the means are responsible for the whole end, at every point of failure that by passed the normal protections like bankruptcy and incorporation, it would probably stop, with all business in the US.

    3. Re:the point to be made here by mandalayx · · Score: 2, Interesting
      She can go in an say, but I didn't know. I was swamped with work, people deserve to have this thing done, Tom was highly recommended and trustworthy, I can't be blamed for holding information hostage! I'm a good person I never have and never would do that. This other sort of innocuous thing is my fault, and I am SOOOO SORRY.

      If we put in a type of liability where the ends don't justify the means, but the means are responsible for the whole end, at every point of failure that by passed the normal protections like bankruptcy and incorporation, it would probably stop, with all business in the US.


      What you seem to be proposing is some kind of contractural obligation not to outsource to another country.

      Fine.

      But in the article, the author cites that "The outsourcing chain was supposed to end with her, as per Newburn's contract with the Sausalito firm."

      So actually, a protection beyond and above what you proposed was already stipulated in contract.

      But sadly, I do see this bitch saying I am SOOOO SORRY and that argument. So you do have a point.
    4. Re:the point to be made here by pavon · · Score: 5, Interesting

      Does anyone have a free-market solution to this?
      Yes, simply make the US companies (and government departments) truely responsible (ie their ass is on the line) for protecting this information. If the cost of failure is higher than other savings, then they themselves will implement strict requirements, and will only want to contract out to groups who have proven themselves to be trustworthy.

    5. Re:the point to be made here by DAldredge · · Score: 5, Informative

      From http://www.hipaadvisory.com/action/LegalQA/law/Leg al44.htm

      QUESTION: To what extent does the HIPAA Privacy Rule (the "Privacy Rule") govern contracts with foreign contractors and subcontractors?

      ANSWER: Contractors and subcontractors, whether foreign or domestic, are generally not directly covered by the Privacy Rule. However, the business associate agreement requirements imposed on covered entities with respect to their business associates will usually apply. The Privacy Rule (as we all know by now) applies to covered entities, i.e., health plans, clearinghouses, and providers who transmit health information in electronic form in connection with a HIPAA covered transaction. A covered entity is permitted to disclose PHI to a business associate if the covered entity obtains satisfactory assurances in the form of a written contract or agreement that the business associate will "appropriately safeguard" the information.

      The Privacy Rule describes two different scenarios in which a HIPAA-related business association may arise. First, when the right to use, disclose, create, or obtain PHI is delegated to a third party for use on behalf of the covered entity. Second, where a third party provides certain specified services to a covered entity and the provision of those services involves the disclosure of PHI by the covered entity to such third party. The specified services are legal, actuarial, accounting, consulting, management, administrative, accreditation, data aggregation, and financial services. It is important to note that each and every relationship between a covered entity and a third party does not constitute a business association that gives rise to the requirement for a business associate agreement as set forth under the Privacy Rule.

      By executing a business associate agreement, a business associate contractually obligates itself to protect the PHI and to not use or further disclose the PHI other than as permitted or required under the agreement or as required by law (American). The Privacy Rule includes required components for a business associate agreement. One of these provisions is the requirement that any agents or subcontractors of the business associate must agree to the same restrictions and conditions agreed to by the business associate.

      Enforcement of such agreements is a frequently voiced concern when the business associate or subcontractor is in a foreign country. Under the Privacy Rule, the US Department of Health and Human Services only has enforcement authority over covered entities (unless a business associate happens to also be a covered entity). Furthermore, while a business associate or subcontractor must contractually agree to protect PHI and comply with the Privacy Rule to the same extent as the covered entity, the problem with these types of arrangements arises if the foreign business associate breaches the agreement. Depending on the legal system of the foreign country, which may range from comparable to that of the United States to non-existent, the covered entity may well have difficulty enforcing such an agreement in foreign courts. Even if the business associate agreement requires US law to apply and provides that all disputes be settled in US courts, if the contractor is situated in another country and has no property or contacts in the US, such a provision will offer small comfort.

      Under the Privacy Rule, covered entities are required to mitigate any harmful effects of a wrongful use or disclosure of PHI by the covered entity or its business associates. And although covered entities must terminate business associate agreements when they "know" of a pattern of activity which is a material violation of the agreement and are unable to cure it, the Privacy Rule does not require covered entities to monitor the activities of their business associates. In spite of this seeming protection, as a practical matter, it is likely that patients who have been damaged by a business associate's breach of an agreement will seek compe

    6. Re:the point to be made here by be-fan · · Score: 2, Insightful

      You don't have to be a neo-con to believe in the free market. You just have to have a brain. I'm a yellow-dog democrat, and I still realize that protectionism is bad.

      --
      A deep unwavering belief is a sure sign you're missing something...
    7. Re:the point to be made here by be-fan · · Score: 2, Insightful

      India is doing great? In what alternate reality? Try to see beyond the tiny little area of IT work and see that India is really not doing very well.

      China is, on the other hand, doing very well. However, they've also been moving strongly towards a free market economy. For example, they recently joined the WTO.

      Historically, the countries that have embraced free trade (France, Great Britain, Germany, United States) have done better than those who have not. Indeed, if you study economic patterns in western Europe over the past six or seven centuries, you'll see a strong correlation between increases in free trade and increased economic power.

      --
      A deep unwavering belief is a sure sign you're missing something...
    8. Re:the point to be made here by rodgerd · · Score: 2, Insightful

      I'm sorry, your present legislative representatives are busy making it harder to sue and capping awards under the guise of so-called tort reform; they're not interested in making it easier for you to sue an insurance company for fucking you over.

      Nor will they be, until you can ante up a few million in bribes. Sorry, donations.

    9. Re:the point to be made here by YU+Nicks+NE+Way · · Score: 5, Interesting

      Actually, you're wrong. India is going through a huge period of economic growth throughout its economy. In this, it is replaying a pattern very like the other industrializing countries of the world. It appears to you and me that India is a shambles, but that isn't because the economy is doing poorly, but because it started out doing so much worse.

      Most countries go through an extended mercantilist period during their early mass industrialization. During that period, wages in the industrializing country are typically quite low becuase the coutry's currency is artificially depressed. During that period, the country's industrial production skyrockets. Since consumers in the country buy their own products with their own currency, the irrational pricing structure of their industry's exports doesn't affect them, and they act as an internal gate which forces the quality of their exports up.

      Eventually, however, growth leads to major industries being unable to provide for their own production with local acquired raw materials. At that point, prices of locally produced products start to reflect the relative level of the currency: foreign raw materials must be bought in foreign currency, which raises the prices of the finished goods into which they are made. That triggers a sharp round of inflation, which leads to a more restrictive currency policy. The price difference between finished good produced in country and those produced abroad gradually shrinks, due to this pressure.

      To see this pattern in action, you can go back to Japan in the fifties through the eighties, S. Korea since the eighties, and India now. Alternatively, you can go back to the United State in the late nineteenth century, or to the great European powers in the early nineteenth century.

      Europe and the United States managed to extend the period during which they could pursue a mercantilist policy somewhat longer by maintaining a captive market to which finished goods could be exported and from which raw materials could be imported in the local currency. The European powers did this by maintaining colonial markets in Asia, Africa, and, to a lesser extent, the Americas. The Americans settled our West, which became a huge source of raw materials for our East coast industries. The captive markets allowed the industrial base to continue to acquire raw materials at a disproportionately low price.

      Schumpeterian equilibrium may well apply to an economy which is dependent on a influx of externally produced raw materials balanced by an egress of internally produced finished goods. That's not the case for economies in their earlier stages of industrialization and development. I don't know how long it will take for India to reach that state, but given the combination of destitution and size of her population, I wouldn't be inclined to expect her government to adopt less mercantilist policies any time soon. It's not rational to do so.

    10. Re:the point to be made here by Bombcar · · Score: 2, Funny

      Can we bash Pakistan instead?

      Go a little bit farther north and we can say that the terrorists did it in their Afghan training camps.

      No doubt Katz (were he still with us) would tell us about Abdul Komodor who uploads full length movies of patients' records to the internet from his Commodore 64. :)

    11. Re:the point to be made here by be-fan · · Score: 2, Interesting

      The question is: do you believe it is legitimate to protect people from themselves? I don't believe that it is. Could you imagine if the government passed legislation forcing people to install anti-virus software?

      There are situations where the government should intervene to protect the population. The vast majority of these cases are:

      - Where one person's failure affects everyone. For example, automotive regulations exist because if you crash your car, you could hurt other people. Laws against smoking in certain areas exist because of the dangers of second-hand smoke. Etc, etc.

      - Where it is too onerous for a an individual to conduct sufficient research to make an informed decision. The FDA, for example, exists because it would be out of the capacity for an individual to do their own drug-safety testing.

      I would argue that neither of these cases are true for privacy protection. A breech of your violation does not affect me. You choosing to do business with a firm that cannot properly manage your privacy does not affect my choosing to do business with a firm you can properly manage mine. Certainly, I would argue that it is not out of the capacity of individuals to research and see which companies can be trusted with privacy and which cannot.

      --
      A deep unwavering belief is a sure sign you're missing something...
  4. No news by Davak · · Score: 4, Interesting

    Most transciption services are now computer-transcription now anyway.

    You speak. Human transcribes. Computer learns. Human error checks... eventually the computer is good enough that the human is not needed at all.

    We are using this system now. It, of course, sucks compared to a real transciptionist... but it is 10 times cheaper.

    Davak

    1. Re:No news by DraconPern · · Score: 2, Informative

      We just tried a computer transcription product from the largest medical transcription equipment company for a month, and let me tell you, it doesn't work. It was too hard to use, produced too many errors (95% accurate), and in the end still needed a transcriptionist to correct the errors. So why bother?

      We ended up getting the portable digital transcription system (4 recorders, foot pedal, and software) from the same company. It was cheaper to pay the transcriptionist than the software, and we now have a 3 hour turnaround time on our transcription. Our doctors and refering physicians love it.

  5. Weaker standards? by LostCluster · · Score: 3, Insightful

    American law sets out very tight restrictions on what our doctors can do with our private records, and there are stiff penalties for any individual who violates trust with this data. Could sending these tasks overseas cause there to be less-strict laws regulating the handling of private medical info?

  6. I don't actually need privacy.... by BrentRJones · · Score: 3, Funny

    since I stole someone's identity a while back.

    And no I was never a football tight end.

    --
    Help end the use of Sigs. Tomorrow
  7. Blackmail by Rosco+P.+Coltrane · · Score: 4, Funny

    She said she e-mailed him at what she assumed was his important U.S. company, Tutranscribe, although the firm didn't have its own Web site, only an AOL account.

    "You've got (black)mail!"

    --
    "A door is what a dog is perpetually on the wrong side of" - Ogden Nash
  8. Re:HIPPA Violation ? by Anonymous Coward · · Score: 2, Informative

    Its *HIPAA* not, and I repeat, *NOT* HIPPA.

  9. Re:Transcriptionist by mandalayx · · Score: 5, Interesting

    All docters should have their computers transcribe their dictations like my father does.

    Well, hope God helps you when you get "an a cute case of men in vaginas".

    Seriously, I haven't seen any natural-language software reach the point where I would trust it with medical information. I would rather get the right treatment than someone fucking up my patient records...

    Not to mention the cost of a doctor having to sit down and error-check afterwards, etc. If you look at a doctor making $100/hr (hey, they went to 7+ years of school, residency, internship, etc) that would add even more to the current cost of health care.

    On an unrelated note, my uncle (who is a doctor), works in the ER. He says that because persons on Medicare don't pay for amublance rides, he sees people in the ER who have cuts on their fingers, minor abrasions, etc, who have their ambulance rides paid for by us, the public. And considering one of my friends got billed $1000+ for a recent ambulance ride, I think we're getting screwed.

  10. Re:Transcriptionist by Ateryx · · Score: 4, Insightful
    All docters should have their computers transcribe their dictations like my father does.

    From your comment, I hope your father does as well... a few letters can make a huge difference in what drug is given/how much drug is given. Especially if the pharmacist just blindly fills the perscription. (For more info please see: "High Malpractice Insurance")

    --
    "The truth suffers from too much analysis"
  11. Re:HIPPA Violation ? by Davak · · Score: 2, Interesting

    HIPPA stresses patient privacy--and goes way overboard. But that's a different discussion.

    The question is not if this is a HIPPA violation... which it clearly is. But is it a violation of US law at all?

    If the presidental candidates want to win over the working class, make companies that send jobs overseas follow the same rules we do. Pay taxes, not pollute, no child labor, and even HIPPA -- why should they get to drop the US rules just because they cross the border?

    If I get a ticket in Texas, points still go against my license here at home.

    Why should a big company be treated any differently?

    Davak

  12. Re:HIPPA Violation ? by stox · · Score: 5, Informative

    Sadly, this is a perfect example of a gaping loophole in the law. It doesn't apply to contractors outside the hospital, it only applies to the hospital.

    --
    "To those who are overly cautious, everything is impossible. "
  13. Re:Transcriptionist by jd_esguerra · · Score: 5, Funny
    Well, hope God helps you when you get "an a cute case of men in vaginas".

    If I had such an affliction, I would argue that god had helped me.


  14. Re:Transcriptionist by Scoria · · Score: 2, Insightful

    All docters should have their computers transcribe their dictations like my father does.

    I'm a little incredulous. Yes, voice transcription software is becoming impressively accurate. In a scenario where just one discrepancy can potentially endanger a patient, however, should physicians be applying the current technology?

    On the other hand, one could argue that a traditional transcriptionist is also capable of committing mistakes, and that argument is completely valid. However, there exists one difference: The transcriptionist is more likely to be held accountable than a software vendor, even if outsourced. ;-)

    --
    Do you like German cars?
  15. *sigh* by TheCabal · · Score: 4, Insightful

    I work in a similar industry, handling patient claims information. This story has been circulating around for a while. What really grabbed my attention from this article was the statement of Transcribe Stat's owner.

    "After 23 years in business, it took just one little e-mail to ruin me."

    And there it is. These are the things that keep me up at night, watching firewalls logs and everything else that keeps me from getting a good night's sleep.

    1. Re:*sigh* by mandalayx · · Score: 2, Insightful
      I work in a similar industry, handling patient claims information. This story has been circulating around for a while. What really grabbed my attention from this article was the statement of Transcribe Stat's owner.

      "After 23 years in business, it took just one little e-mail to ruin me."

      And there it is. These are the things that keep me up at night, watching firewalls logs and everything else that keeps me from getting a good night's sleep.

      Interesting. Looks like we just found the free market solution that will regulate the market by itself. (of course, assuming free press, lack of public apathy, and no monopoly)

      But on a human-interest level, my sympathies to Transcription Stat.
  16. contactors must be held responsible by fermion · · Score: 5, Insightful
    The problem really is that subcontracting is meant to pass responsibility to another party. The person who contracts the work, as is the case woth, for example, Walmart or Nike, is allowed to feign ignorance and tends to be resolved of all responsibility. This situation, of course, gets worse as you move down the chain of subcontractors. It is a situation in which contractors are taking money for doing little more than taking a cut for mailing some paper.

    The truly scary part is that the US government is trying to outsource everything as well. This includes the IRS, which means that your personal tax information is going to be in hands of some work-at-home person making $1 per transaction filed, stored on the computers on some half-assed system administrator. The original contractors will have no responsibility as the contracts will be written to require minimal due diligence and almost no penalties for infractions.

    This of course has been defended as completely consistent with all current privacy laws. In addition, the somewhat friendly people at the IRS, a result of new regulations that resulted from the friends-or-Reagan audits, will be replace with the same people who call during diner asking you to buy their product, or yelling at your children because their parents did not pay a bill.

    --
    "She's a scientist and a lesbian. She's not going to let it slide." Orphan Black
    1. Re:contactors must be held responsible by Herkum01 · · Score: 2, Informative

      Just because you are using a contractor does not absolve you of the responbility. A company that has a contractor do something illegal, as a representative of the company, is liable for the acts of that contractor. Using this story, The hopital could have been sued if patient records were placed on the internet and the hospital would have sued "Transcript Stat." Sonya Newburn herself might even be held personally responsible depending on the type of company she had and even then that might not protect her either. So even if the hospital did not do wrong and did not knew, the fact was that they are held responsible for the work done by the people that they used. You can contract responsibility away from yourself, only get someone else to do it for you and realize, "if they screw up I am going to be held for their fuck up."

  17. The free market solution by EmbeddedJanitor · · Score: 4, Interesting
    According to free market theory, if there is a perceived value for a service, then it will come into existence and people will pay for it.

    If people perceive the offshoring to give some privacy risk then they will perhaps be prepared to pay an extra $5 or $10 or whatever each month to a service that guarantees your case will be handled by an American. Alternatively, a company that advertises that they guarantee American processing will get a competitive advantage over their offshoring competition.

    It seems hypocracy to me that those that bitch about losing their jobs to India don't seem to mind wearing Nikes made in Philipines and having Korean RAM in their PCs.

    Free market means paying for things you value, not just bitching about things.

    --
    Engineering is the art of compromise.
    1. Re:The free market solution by mandalayx · · Score: 4, Interesting
      According to free market theory, if there is a perceived value for a service, then it will come into existence and people will pay for it.

      If people perceive the offshoring to give some privacy risk then they will perhaps be prepared to pay an extra $5 or $10 or whatever each month to a service that guarantees your case will be handled by an American. Alternatively, a company that advertises that they guarantee American processing will get a competitive advantage over their offshoring competition.

      Interesting. I see a business opportunity.

      Perhaps the next time you go to UCSF Medical Center, you can fill out a check box saying:

      [ ] I want all my medical transcription done in the US, certified by blahblah for $5 extra. Disclaimer: Transcription in the US has not been shown to be better or worse than offshored transcription.


      I think that would be kind of cool. simple and elegant.
    2. Re:The free market solution by f0rt0r · · Score: 2, Interesting

      Hate to say it, I bitch about losing jobs to other countries, don't wear Nikes,and use RAM made in Boise, Idaho. It's about putting your money where your mouth is, as much as is possible.

      Oh well, I am sure there some people out there that match the stereotype you gave, but I wanted to make sure people knew there were also some who don't.

      --
      I can't afford a sig!
    3. Re:The free market solution by cyril3 · · Score: 2, Insightful
      if there is a perceived value for a service, then it will come into existence and people will pay for it

      I think the theory says that if there is a perceived profit to be made in providing a service then it will come into existence. A small but telling difference.

      Services exist because someone offers them in the hope of making a profit. Advertising exists to ensure people understand they have a need for the service.

      If people perceive the offshoring to give some privacy risk then they will perhaps be prepared to pay an extra $5 or $10 or whatever each month to a service that guarantees your case will be handled by an American.

      This confuses two separate groups; the hospital (people in the quote above) and the patient (your in the quote). The patient doesn't have any say in what happens to their records within the hospital system neither do they pay for the service anyway. The hospital is only concerned in the long run with confidentiality because of laws and potential lawsuits. If they can save a few $ then they will make the decision about risk of breach of privacy based on that rather than directly on the desire of the patient.

      Everywhere you look in the Healthcare system you run into head snapping examples of moral hazard at work.

      It seems hypocracy to me that those that bitch about losing their jobs to India don't seem to mind wearing Nikes made in Philipines and having Korean RAM in their PCs.

      That is a very simplistic view of the role of international trade. Are you prepared to stop importing and exporting goods and services. If not then it's perfectly reasonable to question the extent of movement of capital and labour across borders. Especially if you are direct effected by it.

  18. HIPAA by DAldredge · · Score: 4, Informative

    http://www.hipaadvisory.com/action/LegalQA/law/Leg al44.htm
    QUESTION: To what extent does the HIPAA Privacy Rule (the "Privacy Rule") govern contracts with foreign contractors and subcontractors?

    ANSWER: Contractors and subcontractors, whether foreign or domestic, are generally not directly covered by the Privacy Rule. However, the business associate agreement requirements imposed on covered entities with respect to their business associates will usually apply. The Privacy Rule (as we all know by now) applies to covered entities, i.e., health plans, clearinghouses, and providers who transmit health information in electronic form in connection with a HIPAA covered transaction. A covered entity is permitted to disclose PHI to a business associate if the covered entity obtains satisfactory assurances in the form of a written contract or agreement that the business associate will "appropriately safeguard" the information.

    The Privacy Rule describes two different scenarios in which a HIPAA-related business association may arise. First, when the right to use, disclose, create, or obtain PHI is delegated to a third party for use on behalf of the covered entity. Second, where a third party provides certain specified services to a covered entity and the provision of those services involves the disclosure of PHI by the covered entity to such third party. The specified services are legal, actuarial, accounting, consulting, management, administrative, accreditation, data aggregation, and financial services. It is important to note that each and every relationship between a covered entity and a third party does not constitute a business association that gives rise to the requirement for a business associate agreement as set forth under the Privacy Rule.

    By executing a business associate agreement, a business associate contractually obligates itself to protect the PHI and to not use or further disclose the PHI other than as permitted or required under the agreement or as required by law (American). The Privacy Rule includes required components for a business associate agreement. One of these provisions is the requirement that any agents or subcontractors of the business associate must agree to the same restrictions and conditions agreed to by the business associate.

    Enforcement of such agreements is a frequently voiced concern when the business associate or subcontractor is in a foreign country. Under the Privacy Rule, the US Department of Health and Human Services only has enforcement authority over covered entities (unless a business associate happens to also be a covered entity). Furthermore, while a business associate or subcontractor must contractually agree to protect PHI and comply with the Privacy Rule to the same extent as the covered entity, the problem with these types of arrangements arises if the foreign business associate breaches the agreement. Depending on the legal system of the foreign country, which may range from comparable to that of the United States to non-existent, the covered entity may well have difficulty enforcing such an agreement in foreign courts. Even if the business associate agreement requires US law to apply and provides that all disputes be settled in US courts, if the contractor is situated in another country and has no property or contacts in the US, such a provision will offer small comfort.

    Under the Privacy Rule, covered entities are required to mitigate any harmful effects of a wrongful use or disclosure of PHI by the covered entity or its business associates. And although covered entities must terminate business associate agreements when they "know" of a pattern of activity which is a material violation of the agreement and are unable to cure it, the Privacy Rule does not require covered entities to monitor the activities of their business associates. In spite of this seeming protection, as a practical matter, it is likely that patients who have been damaged by a business associate's breach of an agreement will seek compensation fr

  19. Re:Transcriptionist by rev_sanchez · · Score: 5, Informative

    When many doctors do their own transcription they use software with templates for common diagnosies. Pick the ailment and fill in the blanks. Offshore transcription runs about 12 cents/line. Domestic services runs about 17-20 cents/line but you get native english speakers and U.S. privacy laws (HIPAA).

    --
    If you didn't come to party don't bother knocking on my door. Prince '1999'
  20. Bottom Line ... Americans Don't Care by Average_Joe_Sixpack · · Score: 5, Interesting

    Well at least the majority of Americans are not raising the issue to either companies or their representatives. For the past few months, e-loan has been giving it's customers a choice of where their loan applications are processed (India vs US). Even though these customers knew their private info was going to be shipped overseas, 86% chose India because the processing time was 2 days shorter. Bottom line, American's have a fast food mentality ... ie the cheapest, quickest way will always win.

    As for the story, I work as a consultant in the Health IT arena, and have all too often seen private data mishandled. However standards are greatly improving in the US, but this is only due to the threat imposed by legislation and civil lawsuits. Will 3rd party companies overseas have the same incentive if they are outside of US jurisdiction? Probably not

    1. Re:Bottom Line ... Americans Don't Care by WindowlessView · · Score: 2, Insightful

      86 percent of the customers...are choosing to take advantage of the faster processing time...the ability to close their home equity loan in ten days versus twelve days.

      Why is overseas processing two days faster? Does e-Loan not have sufficient staff in the US? Are the computers faster in India? Is the company unwilling to pay for a 2nd and 3rd shift to facilitate domestic production around the clock?

      If they want to make this comparison then job exporters need present the real choice faced by consumers in most offshoring situations: are you willing to ship your private documents overseas if it is no faster than domestic processing and e-Loan will keep all of the labor savings for their executives' year end bonuses and stock option plans?"

      --
      Leave the gun, take the cannolis.
    2. Re:Bottom Line ... Americans Don't Care by Platinum+Dragon · · Score: 2, Interesting

      Why is overseas processing two days faster? Does e-Loan not have sufficient staff in the US? Are the computers faster in India? Is the company unwilling to pay for a 2nd and 3rd shift to facilitate domestic production around the clock?

      Are the loans really being processed faster, or is eLoan simply giving that impression for some kind of testing purposes? Does any objective evidence exist that the loans supposedly processed in India are really being finished two days earlier? Is eLoan really sending data to be processed where the customer requests it, or simply making it seem that way to test customer behaviour? I would be very interested to find out the answers to these questions, as well as the parent's.

      --

      Someday, you're going to die. Get over it.
  21. In Europe... by paugq · · Score: 5, Informative

    In Europe this would have never ever happened: our laws are very strong regarding to personal data and privacy.

    For instance, if a company here in Spain keeps customers data in a database, and the company wants to have that database hosted abroad (for example, for its website), in the USA, France, or any other country in the world, one person -with a name and a surname- of that company has to ask the Director of the Data Protection Agency for a written permission to do so.

    Break Privacy Laws and you'll face a monetary penalty from $600 to $600000

    1. Re:In Europe... by Kris_J · · Score: 2, Interesting
      In Europe this would have never ever happened:
      Because, of course, there aren't any greedy, immoral people in Europe.

      This information didn't go out in boxes that customs can search, it was sent down a wire at the speed of light. It went off-shore against the law because someone decided to charge local rates then pay for some under-protected borderline-slave labour person to do it at a fraction of the cost.

      The companies involved are dead, destroyed by this act of stupidity. Short of jail time (costly to society and not especially approriate when someone isn't a physical risk to the community) things can't get much worse for the parties involved.

    2. Re:In Europe... by Brandybuck · · Score: 2, Interesting

      In Europe this would have never ever happened: our laws are very strong regarding to personal data and privacy.

      I work for a German company where the personal data of German customers is 100% available to the customer support center in Singapore. There's nothing stopping a similar privacy leak happening to this European company.

      --
      Don't blame me, I didn't vote for either of them!
  22. Yes it is.. by zedpol · · Score: 3, Informative

    My brother owns a dental office, part of being HIPPA compliant is getting anyplace you subcontract with to agree to the HIPPA privacy laws. I set up an offsite backup system for them but before they could upload any of their patient data they had to get the company to agree to their privacy statment.

    --
    --I swear, it was a case of isolated idiopathic hemibalissmus
  23. Re:Transcriptionist by SillyNickName4me · · Score: 4, Interesting

    I have been doing technical support for IBMs dictation software for a while in 1996-97 and a substantial part of our customers back then were doctors and lawyers. Both used special purpose dictionaries and reported that it worked quite well. I would be really surprised if this has gotten worse in the last few years.

    Things like medical transcriptions are a lot easier then general purpose transcriptions for a computer and can be a lot more accurate due to more specialized and limited dictionaries.

  24. Meditalk by students · · Score: 3, Informative

    Meditalk is the name of the software used for the dictation system. It's real time, so the doctor can check for errors while he talks. The buigest problem with it was the support contractor (Not Quincy Systems) who forged a singnature on a document.

  25. Re:Transcriptionist by tongue · · Score: 4, Interesting

    Seriously, I haven't seen any natural-language software reach the point where I would trust it with medical information. I would rather get the right treatment than someone fucking up my patient records...


    Actually, I used to write medical software that had an autotranscription component using Dragon's software, and given a medical dictionary to select from and a proper training cycle, it was incredibly effective. The physician or a designated individual still had to approve the report, but very rarely were there any problems with transcription (we tracked corrections through the system so we'd know how effective it was, and after a proper training cycle it was better than 96% effective.)

    on the subject of the cost of healthcare, doctors using our system loved it specifically because it allowed them to accomplish more work (for a lot of reasons, not just the Dragon software) in the same period of time, which helped the hospital keep costs down. Did that drive down medical costs for everyone? of course not--but not because things were more expensive. Face it, people are greedy. Insurance companies never cut rates, nor do doctors start working for less money. hospitals won't start charging appropriate costs back to the patients until they're forced to through legislation (which should be accompanied by a national healthcare system or a system to provide insurance coverage to the 40 million of us without it, to keep hospitals in business.)

  26. Interesting update to the original story by geekwench · · Score: 3, Insightful
    The story was first posted back in October, before the investigation was completed. The facts that have since come to light add a whole new dimension to this outsourcing fiasco. (You can read the original Slashdot article here.)

    I'm trying to decide if Ms. Newburn is an out-and-out hypocrite, or just spectacularly inept at fraud. She apparently sends the work to Pakistan, ignoring any concerns about professional ethics, and creates "Tom Spires" to cover her posterior; then cries about how awful it is that American jobs are going overseas, once her house of cards comes crashing down. This situation really calls for the old question: "What the hell were you thinking?!"

    --
    Doing my level best to piss off the religious right wing...
    1. Re:Interesting update to the original story by eclectro · · Score: 2, Insightful

      I think you hit it. "Tom Spires" and Newburn are one in the same.

      She new that what she was doing was wrong. But greed pretty much overrided that.

      I really think that a prosecutor somewhere needs to make an example of her.

      --
      Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
  27. Re:Transcriptionist by thedillybar · · Score: 4, Insightful
    Seriously, I haven't seen any natural-language software reach the point where I would trust it with medical information.

    Would you rather have it outsourced to someone overseas who your doctor met on the Internet? That more-or-less happened here. The person can't be held responsible.

    US authorities would have a hell of a time finding them, and, if they did, there's not much they could do anyway. Do you still think this person is more reliabile than computer software? I don't think either is reliable enough.

  28. Re:HIPPA Violation ? by be-fan · · Score: 2, Interesting

    So basically, what you are saying, is that if you want to do business in the US, you have to follow US laws all over the world? That smacks of cultural imperialism if you ask me! The US can keep its laws in its own damn country. Certainly, I'd hate to see anything like PATRIOT or DMCA get spread any further than it already has!

    --
    A deep unwavering belief is a sure sign you're missing something...
  29. Re:Transcriptionist by Anonymous Coward · · Score: 2, Informative

    HIPAA requires that all subcontractors are also HIPAA compliant. If the cheap foreign labor isn't, your doctor is liable. If your data gets published, sue your doctor's ass off. In the end, his insurance company will foot the bill. It won't be long before they figure out a solution that limits their exposure to liability.

  30. Tape Storage by superpulpsicle · · Score: 2, Informative

    People sound surprise that their data end up in some third world country facilities. To be honest, big companies have had terabytes of data stored in other countries for years. Usually it's the historical data beyond a 1 year full backup that ends up in some other countries.

    Granted yes, it takes efforts to dig it up. But still, the data is theorectically outsourced.

  31. I warned people about this last year by HangingChad · · Score: 3, Insightful
    This is only the beginning. Do you think foreign governments are going to respect your privacy? Imagine going to a meeting and the person on the other side of the table knows all the meds you might be taking and all your credit card transactions for the last six months. Sure, sign with us and we can keep your little secret about that apartment across town out of the news.

    Let's see them prosecute identity theft in Bangladore. It's only a matter of time before people who make 3 dollars an hour start figuring out how to turn your financial data and credit card numbers into $$$$$.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
    1. Re:I warned people about this last year by Anonymous Coward · · Score: 2, Insightful

      I don't understand why some blackmailing being done in a terrorist country is being stereotyped to a different culture altogether.
      Pakistanis are known as backstabbers everywhere and if they don't change their habbits, that doesn't mean that all civilized nations India, Canada, Philippines, Mexico are like that.
      From experience, Indian and Canadian governments, in particular, have very strict laws to protect any kind of security leaks.

  32. Condoms for Data. by t_allardyce · · Score: 5, Informative

    Just pimping out our nice little Data Protection Act we've had in the UK for 16 years (i think its European too):

    -You have the right to access any personal data any company/organisation holds on you, including the police (the police can be exempt in certain situations), government agencies, your school, shops etc and this can include video and internal memos about you and non-electronically stored data AFAIK

    -You have the right to know who is holding what and what they intend to do with it

    -It cant be taken outside the European Economic Area without your consent

    -Security measures must be taken to ensure its safe

    uhuh uhuh you know you want it yeah! come on! pah in-your-face like a can-of-mace!

    --
    This comment does not represent the views or opinions of the user.
  33. Those are the risks of outsourcing... by baywulf · · Score: 2, Insightful

    A medical transcription company outsourced its core business of transcription and lost control over the details. Now they pay the price.

  34. Separate medical data from patients? by fembots · · Score: 5, Insightful

    Wouldn't it make sense to separate data from patients? This is like Database Design 101.

    So patient medical records can be transcribed by anyone without leaking the identities, and the patient details are held in another database.

    So if someone wants to post a medical record, it can only go as far as "Patient DFA12435 has xxx, HA! HA!".

    1. Re:Separate medical data from patients? by gabbarbhai · · Score: 2, Interesting

      AFAIK, that's already happening for largish transcription jobs.
      Even without the patient identities, there are multiple ways to abuse such information, including selling it to drug companies as demographic data ;-)
      The problem, as the article pointed out, is that the US laws cannot be used in most cases to control what people abroad do with the data. The solution there is to send out sensitive data only to established corporations, and not cheapen out to such an extent. Wipro or Infosys (two largest oursourcing companies in India) would never dare blackmail their clients or compromise their data, cause their skins would be on the line for other jobs they might want in the future..
      Talking about privacy, why do people assume that data in the "third-world" is so insecure? Indians are even afraid of punching in their PINs in the telephone lest someone would decode them by listening to the beeps. Ever wonder about that here in the US? :-)

    2. Re:Separate medical data from patients? by fhic · · Score: 4, Interesting

      Separating the data from the patient makes perfect sense. But consider this: someone has to match the data back up with the patient identification again later on. And that has to be *perfect*. Not pretty close, not five-nines close, *absolutely perfect*. One screwup and you've potentially killed someone. Do you trust your outsourced worker not to alter a digit of the patient identifier? Probably not, which means you're going to have to check the data constantly.

      Where I work, we've looked at outsourcing our pathology transcription business. We decided against it, because we want to keep control of the entire process.

      We keep our costs manageable by a fanatic concentration on efficiency and productivity. The process is as streamlined as it can be, and are constantly vigilant on how we can keep the process running smoothly.

      We manage to stay profitable in a business that's as cutthroat as it gets. And we pay a decent salary (even by San Diego standards!) for good transcriptionists who can meet their accuracy and productivity standards.

  35. Re:Transcriptionist by timeOday · · Score: 2, Interesting
    Not to mention the cost of a doctor having to sit down and error-check afterwards, etc.
    Are you saying doctors don't proofread their dictation? I agree leaving it to computers is bad, but a low-paid transcriptionist (who might not even speak english) doesn't sound real great either.
    If you look at a doctor making $100/hr (hey, they went to 7+ years of school, residency, internship, etc)
    The Doctors' Union (AMA) restricting medical school availability and enrollment doesn't hurt either.
  36. insurance information by Johnny+Mnemonic · · Score: 3, Informative


    I know many of you work in the heatlh care business, and take HIPPA pretty seriously. I work in it myself, although in a tangential relationship and don't have to abide by HIPPA due to the nature of my facility.

    However, my wife works in the insurance business; specifically, she evaluates claims made against her company for legitimacy. She has the ability to draw upon resources that will tell her any individual's medical history, public and private; she can relatively easily flaunt the protections of HIPPA, although she can't reveal that she knows more about your medical condition than you do. She's not clear on how her resources can determine the things that they do, but it just shows the lie that to how much these protetctions provide.

    --

    --
    $tar -xvf .sig.tar
  37. Capital one by bl968 · · Score: 4, Informative

    Capital one has outsourced your credit card account customer service personnel to India. I called up with a question and hearing a distinctive accent I asked the young woman where she was located. To her credit she answered me honestly and I had no real problems with her. However I do feel that any information sent to outsourced personnel overseas should be subject to all US legal protections and the company should have to treat that data with the same responsibilities as if it was here in the USA.

    --
    "GET / HTTP/1.0" 200 51230 "-" "Mozilla/4.0 (compatible; Setec Astronomy)"
  38. Re:Transcriptionist by LiquidCoooled · · Score: 2, Funny

    I do!
    A medical wiki :)
    Allowing diagnosis treatment charts to be followed, and a place to enter new symptoms and conditions effecting the decision.

    Get the doctors insterested in a scheme and build up a huge medical database.

    Peer review then sorts out the crappy answers from the useful.

    --
    liqbase :: faster than paper
  39. This isn't new, just new for you Americans... by Hanno · · Score: 5, Interesting

    It's funny that the US is getting upset about data processing "beyond the reach of U.S. authorities", because already some years back, it used to be the other way round.

    For several years now, some larger German companies used to offshore their customer data processing to the USA. Some claim this is also done because of the USA's less strict privacy laws that allow for far more data profiling than allowed in Germany. There is also growing concern in German media that it will be impossible to control such outsourced data and that there is no way to ensure that customer data will not be used by the American procesing company for other purposes or sold to third parties.

    One such example was the Bahncard, a price rebate system for the national railway. For a few years, it came combined with a creditcard option and its data would be shared with an external partner of CitiBank US for customer profiling, including a photograph, a full credit history and all payment data of the user.

    --

    ------------------
    You may like my a cappella music
  40. She is lying. by SmallFurryCreature · · Score: 5, Insightful
    What it took to ruin her was her own greed. She was hired to do the transcribing. But instead of hiring her own people, checking those people, checking their work she outsourced it to a lower bidder.

    This has nothing to do with countries and law this has to do with your privacy being handled by the lowest bidder.

    Each step in the chain shows someone wanting lots of money for not doing anything. If hospitals and others were serious they would do the transcribing in house. But of course that is no longer allowed. Focus on your core capabilities has become the watch word. So that a place like a hospital is now really a meeting hall for outsourcing companies. From temp nurses to cleaners, from caterers to office staff. No one works for the hospital, they all work for the lowest bidder.

    Neat eh? And the funny thing is? Medical bills only seem to go up. Why am I paying more insurance when all this cost saving is going on?

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  41. Why? by SmallFurryCreature · · Score: 4, Insightful
    She was payed to transcribe. Instead she outsourced. She got paid to keep records confidential, she didn't instead going with the lowest bidder to maximize her profits. No doubt offering the lowest bid herself making other respectable companies loose out on the contract.

    No this whole story is one of greed and it starts right at the patients. After all they want low low insurance and medical bills. So the hospital saves by outsourcing instead of doing it in house. The outsourced company outsources again instead of doing it in house and so on.

    Feeling sympathy here is misplaced. Each and everyone involved, including the patients, is a victim of their greed.

    Maybe I am just a cynical bastard.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  42. This is insightfull? by SmallFurryCreature · · Score: 4, Insightful
    This story is about doctors SPOKEN notes being put in writing. The doctor is supposed to do database abstraction while doing surgery? I know doctors are not the dumbest people, although their blunder kill thousands each year, but that might just be a little bit diffiult.

    Seperarting database records like you suggest is indeed possible. You could easily seperate a patients credit history from their medical history. Doctor don't need to know payment details and the collectors don't need to know medical details.

    But in this case that is impossible. Medical details do belong with the name.

    --

    MMO Quests are like orgasms:

    You may solo them, I prefer them in a group.

  43. Privacy Laws in the works in India.. by civad · · Score: 2, Informative

    In case people thought that NOTHING was being done abt the matter:
    http://www.computerworld.com/managementtopics/outs ourcing/story/0,10801,81698,00.html
    http://www.computerweekly.com/articles/article.asp ?liArticleID=122250&liFlavourID=1&sp=1
    http://216.239.51.104/custom?q=cache:aGXMuwaC72YJ: www.nasscom.org/download/CyberLaw.pdf+privacy&hl=e n&ie=UTF-8

  44. Re:US Privacy laws are a joke by rossz · · Score: 2, Interesting

    A big L Libertarian wouldn't have a problem with this as they would argue that the companies involved would suffer when they were sued.

    A little l liberarian (such as myself) realizes that the average joe can't afford to go up against a major corporation. Less government is good, no government is bad.

    --
    -- Will program for bandwidth
  45. Poorly hidden protectionism by mi · · Score: 2, Insightful

    From the article:

    "There's no remedy for a U.S. citizen if his information is compromised." [California Sen. Joe Dunn, D-Garden Grove]

    Nonsense. Plenty of countries have perfectly good laws on privacy -- especially, the privacy of medical records. This is just an attempt to score some points with outsorcing-scared electorate without upsetting the pro-business part of it too much.

    Even if so, as long as the original customer (the hospital in this case) is in US, the victims have someone to sue. It should be left up to the hospital to decide, not mandated by law. Sooner or later WTO will demand, California drops this law... And I'll support them.

    Plenty of vitally important stuff is being made abroad -- medical equipment, cars, food. By this Senator's logic, we should not be importing any of it because "there is no remedy" in case the manufacturer screws up.

    --
    In Soviet Washington the swamp drains you.
  46. Unfortunately... by tuxette · · Score: 3, Informative
    It cant be taken outside the European Economic Area without your consent

    Personal data may be taken out of the EU/EEA only if without prejudice to compliance with the national provisions adopted pursuant to the other provisions of this Directive, the third country in question ensures an adequate level of protection. (EU Personal Data Directive 95/46/EC, Article 25). See here for whole Directive.

    The United States is not a third country that the EU has determined to provide an adequate level of protection of personal data. However, if the individual companies or organizations in the US adhere to the Safe Harbor agreement, personal data may be transferred.

    Unfortunately, it can ultimately be difficult to control that data once it gets to the US. A in Europe may determine that B in the US provides adequate protection via Safe Harbor. All is well, right? Not necessarily. What happens when B subcontracts to C, who subcontracts to D, who subcontracts to E, who subcontracts to F in country G where privacy laws don't exist? Yeah sure, there are rules, but if something were to happen, there would be more finger-pointing and "you weren't supposed to..." and the such, as opposed to taking on responsibility. But nonetheless, your personal data has been compromised. All the bickering in the world won't resolve that matter.

    --
    People say I'm crazy, I got diamonds on the soles of my shoes...
  47. Florida by Anonymous Coward · · Score: 2, Funny

    Is it just me, or is Florida a common link in most of the scams that go on in the US?

  48. Re:Transcriptionist by tanguyr · · Score: 2, Funny
    Perhaps you have a suggestion for a better one? Or just a better system in general?

    AskSlashdot / Your Health Online (http://medical.slashdot.org/)
    DrWho asks "I've got a patient here with severe flu like symptoms and a strange rash - what should i do?"

    AC: FP!
    AC2: You lose it!
    AC3: Support the GNAA
    AC4: In Soviet Russia, symptoms exhibit YOU!
    etc...
    etc...
    etc...
    --
    #!/usr/bin/english