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Boston Children's Hospital To Pay $40,000 Fine Over Data Breach

BOSTON (CBS) -- Boston Children's Hospital has agreed to pay a $40,000 fine and improve its security measures after a 2012 data breach exposed information from more than 2,000 patients.

The breach occurred when an encrypted hospital-issued laptop was stolen from a physician while he was presenting at a May 2012 conference in Buenos Aires. Before the theft, the physician received personal information for more than 2,000 patients, a majority of whom were under age 18.

Attorney General Martha Coakley's office said despite the physician's attempt to remove the information, the hospital violated its policy by not installing encrypted software and leaving many patients vulnerable.

"Today's settlement will put in place and enforce important technological and physical security measures at Boston Children's Hospital to help prevent a breach like this from happening again," Coakley said in a public statement.

The hospital will pay a $30,000 civil penalty along with $10,000 to a educational program fund set up by the Attorney General's office to teach about protecting personal and health information.

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