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SettlementHigh RiskMultistate

Connecticut and New York Settlement with Boston Children’s Health Physicians and XTIUM

Boston Children’s Health Physicians and XTIUMOctober 16, 2026Connecticut Attorney General

Penalty Amount

$2,640,000

Consumers Affected

887,871

Summary

Connecticut and New York found that Boston Children’s Health Physicians and its security vendor, XTIUM, failed to use reasonable safeguards, resulting in hackers accessing sensitive personal, medical, and employee information. The companies agreed to pay penalties totaling $2.64 million and implement enhanced cybersecurity measures.

Remedy

The companies must pay $2.1 million to New York and $540,000 to Connecticut, and adopt cybersecurity measures including a comprehensive information security program, a data inventory, reasonable authentication procedures, logging and monitoring, and enhanced threat response procedures. Additional penalties are payable if BCHP violates the settlement terms.

Monetary PenaltyInjunctionCompliance Program

Contract Impact

Review healthcare vendor and data-processing agreements for explicit allocation of security responsibilities, required security assessments, minimum safeguards, encryption, access controls, logging and monitoring, and incident-response cooperation. Vendor agreements should require prompt breach notification, investigation support, and remediation, and should address subcontractor oversight and audit rights. Customer-facing privacy notices and data-processing terms should accurately describe protections for sensitive medical and financial information; employee data agreements and policies should also cover safeguards for workforce information.

Contract Search Terms

vendor security assessmentdata security safeguardsincident response plansecurity responsibility allocationlogging and monitoringencryption requirementsdata inventoryauthentication proceduresbreach notification clause

Violation Types

Entity Details

Entity

Boston Children’s Health Physicians and XTIUM

Industry

Healthcare

Multistate Coalition

Official Sources

Source Evidence

Entity Name
"Boston Children’s Health Physicians (BCHP), a New York-based pediatric health network, and XTIUM, an IT management company"
Fine Amount
"$2.1 million penalty to New York and $540,000 to Connecticut"
Violation Types
"Hackers stole the records of approximately 825,000 New Yorkers and 62,871 Connecticut residents from BCHP’s network, including Social Security numbers and medical information."
Violation Types
"BCHP failed to reasonably manage its vendor-based security program and adopt standard security protections, which left it vulnerable to hackers."
Remedy Summary
"the companies must adopt a series of measures to strengthen their cybersecurity practices"

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