Full Answer Section

Fiduciary Duty:

A fiduciary duty is a legal obligation to act in the best interests of another party. It involves trust, confidence, and a higher standard of care than ordinary negligence. Certain relationships, like doctor-patient, lawyer-client, and trustee-beneficiary, are inherently fiduciary.

The Overlap:

In many healthcare settings, a fiduciary relationship does exist between the healthcare provider (or organization) and the patient. This is because healthcare providers hold sensitive information about patients and are expected to act in the patient’s best interest regarding their health and well-being. Therefore, often, a HIPAA breach will also be a breach of fiduciary duty.

Why it’s not always automatic:

• Not all parties are fiduciaries: While doctors and hospitals typically have a fiduciary duty to patients, other entities that handle PHI might not. For example, a business associate (a company that performs certain functions for a covered entity, like a billing company) is subject to HIPAA, but the nature of their relationship with the individual may not establish a fiduciary duty in all jurisdictions.
• The nature of the breach: Some HIPAA breaches may be technical or accidental, without any intent to harm the individual. While still a violation of HIPAA, it might be argued that it doesn’t automatically equate to a breach of the higher standard of care required for a fiduciary duty. For example, a clerical error where a patient’s information is sent to the wrong address, while a HIPAA breach, might not be considered a breach of fiduciary duty if it was a genuine mistake and the organization took steps to retrieve the information.
• State Law Matters: State laws may define fiduciary relationships and their scope differently. A HIPAA breach might be considered a breach of fiduciary duty in some states but not others, even within the healthcare context.

In Summary:

While there’s significant overlap, a HIPAA breach doesn’t automatically mean a breach of fiduciary duty. It’s a fact-specific determination that depends on:

1. The relationship between the parties (is it a traditionally fiduciary relationship?).
2. The nature and circumstances of the breach (was it intentional, negligent, or accidental?).
3. Applicable state law.

It is always advisable to consult with legal counsel to determine the specific implications of a HIPAA breach in a given situation.