Industry News

HHS Finalizes Changes to HIPAA Privacy and Security Rules
The U.S. Department of Health and Human Services (HHS) announced changes Jan. 17, 2013, designed to strengthen the privacy and security protections for health information established under the Health Insurance Portability and Accountability Act (HIPAA).

According to HHS, the final omnibus rule enhances patients’ privacy protections, provides individuals new rights to their health information and strengthens the agency’s ability to enforce the law.

The final rule is effective March 26, 2013. Covered entities and business associates must comply with the applicable requirements of the rule by Sept. 23, 2013.

The omnibus final rule comprises the following four final rules:

• Final modifications to the HIPAA Privacy, Security and Enforcement Rules mandated by the Health Information Technology for Economic and Clinical Health (HITECH) Act and certain other modifications to improve the rules, which were issued as a proposed rule July 14, 2010. These modifications make business associates of covered entities directly liable for compliance with certain HIPAA Privacy and Security Rules’ requirements.
• Final rule adopting changes to the HIPAA Enforcement Rule to incorporate the increased and tiered civil money penalty structure provided by the HITECH Act, originally published as an interim final rule Oct. 30, 2009.
• Final rule on Breach Notification for Unsecured Protected Health Information under the HITECH Act, which replaces the breach notification rule’s “harm” threshold with a more objective standard and supplants an interim final rule published Aug. 24, 2009.
• Final rule modifying the HIPAA Privacy Rule as required by the Genetic Information Nondiscrimination Act (GINA) to prohibit most health plans from using or disclosing genetic information for underwriting purposes, which was published as a proposed rule Oct. 7, 2009.

The HIPAA Privacy and Security Rules have focused on health care providers, health plans and other entities that process health insurance claims. The changes expand many of the requirements to business associates of these entities that receive protected health information. HHS says some of the largest reported breaches have involved business associates. Penalties are increased for noncompliance based on the level of negligence with a maximum penalty of $1.5 million per violation. The changes also are designed to strengthen the HITECH Breach Notification requirements by clarifying when breaches of unsecured health information must be reported to HHS.

The risk assessment also has been modified “to focus more objectively on the risk that the protected health information has been compromised.” Breach notification is not required under the final rule if a covered entity or business associate, as applicable, demonstrates through a risk assessment that there is a low probability that the protected health information has been compromised, rather than demonstrate that there is no significant risk of harm to the individual as was provided under the interim final rule.

Storetrieve Opens New Records Center
The document storage firm Storetrieve, headquartered in Montebello, Calif., has expanded with the opening of a new records storage facility in Rancho Cucamonga, Calif.

Storetrieve is a part of Los Angeles-based 2-20 Records Management LLC. 2-20 Records Management provides a national records and information management presence that is supported by local companies.

“Servicing our growing California customer base remains a top priority at Storetrieve,” says Avishay Levanovsky, CEO of 2-20 Records Management. “With companies poised and waiting for entrance to our Rancho Cucamonga facility, we look forward to not only meeting their needs with our exceptional service but exceeding their expectations with our Smart Storage Solutions^®. As we expand our document, data, digital and destruction solutions throughout the state of California, we further the national presence of the 2-20 family of companies.”

Other members of the 2-20 family of companies include Arizona Records Storage Center LLC in Arizona, Certified Records Management LLC in Florida and InfoStore Records Management in New York.

GRM Acquires Indiana Document Management Firm
GRM Document Management, a Jersey City, N.J., records and information management firm, has acquired the Indianapolis document management business of Office 360, which will be integrated into GRM.

“We are extremely pleased to have the document management side of Office 360 coming on board,” says Jerry Glatt, GRM executive vice president. “As a customer-focused company, we plan to invest in this opportunity, grow it to the next level and provide even more value for the Indianapolis area client base.”

With the acquisition, GRM says it takes over the management of a significant inventory of off-site physical information. The acquisition also gives GRM a presence in 13 markets. The company says the Indianapolis facility is the fourth it has opened recently, joining new locations in Boston, Maryland and Houston.

GRM is a leading provider of life-cycle records and information management solutions.

Kent Record Management Acquires Two Companies
Kent Record Management Inc. (KRM), a Grand Rapids, Mich.-based provider of records management and storage, data protection, imaging, electronic records and online backup and recovery services, has acquired the assets of Lakeshore Document Services, Muskegon, Mich., and Metro Business Archives, Benton Harbor, Mich.

The acquisitions further expand Kent Record Management’s client base and scale of operations throughout Michigan and northern Indiana.

“Kent Record Management Inc. is pleased to announce our fifth and sixth business acquisitions and welcome our new clients throughout Michigan,” says Greg George, president of KRM and Kent Imaging. “We are excited about our new team members from Lakeshore Document Services and Metro Business Archives, along with our new capabilities.”

KRM says the acquisitions allow it to offer plant-based, mobile and media shredding in addition to expanding its existing imaging, record storage and media storage services.

Garry Olson, former president of Lakeshore Document Services, says, “The combined companies offer numerous additional resources and services not previously available, including mobile shredding, off-site online backup services, tape storage and rotation and additional expertise in records retention consulting.” He adds, “I look forward to joining the Kent Records team along with my staff.”

KRM says it plans to continue to operate out of the Muskegon and Benton Harbor offices of the acquired companies and to expand its product offerings to its new clients and markets. Founded in 1981, KRM is a leading independent records and information management (RIM) services provider serving Michigan and northern Indiana.

Gilmore Services Appoints Director of Sales and Marketing
Pensacola, Fla.-based Gilmore Services, a provider of information storage, imaging and secure document destruction services, has named Jim Beran, former director of business development at a large privately held information destruction company in Minneapolis/St. Paul, as its new director of sales and marketing. He began his role Feb. 1, 2013.

Beran spent the past 17 years working for Shred Right, advancing from account executive to director of business development.

“Jim established the legacy at Shred Right of uncompromising security and unwavering customer service,” says Don Drapeau, president of Shred Right. Beran also has served on the board of directors for the National Association for Information Destruction (NAID), the Phoenix-based trade association representing the information destruction industry, including serving as president in 2010.

“NAID has been very fortunate to have someone of Jim’s integrity, intelligence and compassion to lead it through a period of great change and expansion,” Bob Johnson, CEO of NAID, says. “The association and the industry are better specifically due to his involvement on the board of directors over the past years.”

“Gilmore’s systems, technology and customer service is second to none,” Beran says. “I’ve been in the industry for nearly 17 years, and there’s no firm better in the panhandle than Gilmore Services. They’ve taken integrity and protection of private and corporate information to the highest level. I was so impressed when I met them, I couldn’t wait to come aboard. Gilmore Services is leading the industry. I am thrilled to be joining such a dynamic, thriving and family-oriented company.”

Ronnie Gilmore, president of Gilmore Services, says, “We hire experience and passion. Like Jim, we believe in uncompromising security and unwavering customer service. Jim embodies this with his dedication to colleagues, clients and to our industry; this aligns completely with our company values.”

FastFact
Of those SDB readers who responded to our 2012 State of the RIM Industry Survey, 52 percent report serving their clients weekly, while 21 percent report providing biweekly service.