HHS Fears MedLab Sale May Run Afoul Of HIPAA

Law360, Wilmington (December 18, 2013, 9:37 PM EST) -- The U.S. Department of Health and Human Services on Wednesday took issue with bankrupt Laboratory Partners Inc.'s plan to auction a portion of its operating assets, arguing the sale may include private patient information in violation of the Health Insurance Portability and Accountability Act.

In a protective objection before the Delaware bankruptcy court, the feds argued that the plan by Laboratory Partners, also known as MedLab, to sell its unit that performs laboratory testing services for long-term care facilities includes customer lists as consideration, and those...
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