SCENARIO Please use the following to answer the next question: You are the chief privacy officer at HealthCo, a major hospital in a large U.S. city in state A. HealthCo is a HIPAA-covered entity that provides healthcare services to more than 100,000 patients. A third-party cloud computing service provider, CloudHealth, stores and manages the electronic protected health information (ePHI) of these individuals on behalf of HealthCo. CloudHealth stores the data in state B. As part of HealthCo’s business associ
A. Because HealthCo did not require CloudHealth to implement appropriate physical and administrative measures to safeguard the ePHI
B. Because HealthCo did not conduct due diligence to verify or monitor CloudHealth’s security measurescorrect
C. Because HIPAA requires the imposition of a fine if a data breach of this magnitude has occurred
D. Because CloudHealth violated its contract with HealthCo by not encrypting the ePHI