Texas Attorney General Greg Abbott has reached a settlement agreement with Select Medical Corp. that will help protect Texans from identity theft.
The settlement resolves a state enforcement action, which charged the defendant with violating state laws governing the disposal of customer records that contain sensitive personal information. Under Texas law, vendors must take specific precautions before discarding documents that include customers' bank accounts, driver's license and Social Security numbers.
The state's agreement with Select Physical Therapy Texas L.P. requires the health care provider to amend its existing information security procedures to ensure future compliance with identity theft prevention laws. Select Medical must implement a new training program that educates their Texas employees about newly established privacy procedures and reviews state laws governing the disposal of customer records.
Under the agreement, all Select Medical Texas employees must take the training annually for the next five years. The mandatory course will explain identity theft, its costs to individual customers and the importance of complying with the company's newly implemented document disposal protocol. To further ensure that employees comply with the new protocol, each of Select Medical's Texas locations must post signs detailing records storage and disposal requirements. They also must maintain certification records that show each employee's compliance with the training requirements.
Select Medical agreed to pay the state of Texas $990,000, which includes $100,000 in attorneys' fees. Under the Identity Theft Enforcement and Protection Act, the remaining sum will be appropriated for the investigation and prosecution of future identity theft cases.
The state opened its investigation into Select Medical after the Levelland Police Department reported that more than 4,000 documents containing customers' sensitive information were found in garbage containers behind a Select Physical Therapy Texas Limited Partnership location in that city. The records discovered by authorities contained patients' bank account numbers, sensitive medical evaluations, drug and alcohol testing verification results, plan of care forms, insurance verification sheets, and social and vocational therapy questionnaires.
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