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Essay / Research Paper Abstract
A 3 page paper answering 3 questions about corporate criminal liability in the healthcare setting, particularly as it applies to the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The Justice department states that only organizations are "covered entities" that can be held responsible, but there are other means of holding individual employees responsible for actions outside of corporate policy. Bibliography lists 4 sources.
Page Count:
3 pages (~225 words per page)
File: CC6_KScrimCorp.rtf
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Unformatted sample text from the term paper:
concept of the "evil corporation," rampaging through their markets and seeking gain for themselves by any means possible without a corporate thought for ethics or legality. The charges could
be true for some (such as Enron), but most organizations seek to operate both ethically and legally. There are special considerations for those that do not. 1. Distinguish between corporate
criminal liability versus vicarious liability resulting from negligence of a health care organizations employee. Corporate criminal liability arises from corporate policy or behavior
promoted by policy and practice. In 2000, the Justice Department gained $800 million in fines from HCA in the largest government fraud settlement in US history (HCA, 2000).
In the context of the Health Insurance Portability and Accountability Act of 1996 (HIPAA), a "covered entity" - which is always an organization rather than an individual (Memorandum Opinion, 2005)
- can face "a $250,000 fine and 10 years in prison for the most serious violations" (Pear, 2005). As it clearly is not possible to imprison an organization, those
at the highest levels of management are seen as being personally liable for the organizations actions and policies. Vicarious liability is that which
is "attributed to a person who has control over or responsibility for another who negligently causes an injury or otherwise would be liable" (Vicarious liability, 2002). In almost all
cases, it has been assumed that the organization has responsibility for the actions of its employees, that the wrongful action of an employee opens the organization to criminal charges.
The Justice department departed from this position in an opinion of who is covered by HIPAA privacy regulations. The departments official position is: ...analysis of liability under section 1320d-6
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