Penalty Amount
$2,640,000
Consumers Affected
887,871
New York and Connecticut reached a settlement with Boston Children’s Health Physicians and its IT security provider, XTIUM, after a 2024 breach exposed private information of approximately 825,000 New York residents and 62,871 Connecticut residents. The companies will pay $2.64 million and implement enhanced cybersecurity measures; additional penalties are conditional on violating the settlement.
The companies must pay $2.1 million to New York and $540,000 to Connecticut. BCHP must pay an additional $1.04 million to New York and $260,000 to Connecticut if it violates the settlement. Both companies must adopt stronger cybersecurity measures, including a comprehensive information security program, a data inventory, reasonable authentication procedures, logging and monitoring, suspicious-activity alerts, and enhanced threat-response procedures.
Review vendor and business associate agreements for specific security duties, vendor-assessment and audit rights, encryption requirements for stored patient and billing data, authentication controls, logging and monitoring, incident-response obligations, and prompt breach notification and cooperation terms. For healthcare customer agreements and privacy notices, confirm that security representations match actual controls and that responsibilities for protecting patient information are clearly allocated. Review employee agreements and internal policies governing access to sensitive employee data, and ensure IT support vendors have defined limits and monitoring requirements for remote-access tools.
Entity
Boston Children’s Health Physicians, LLP and XTIUM
Industry
HealthcareOfficial Press Release
https://ag.ny.gov/press-release/2026/attorney-general-james-and-attorney-general-tong-secure-27-million-pediatric
boston children s health physicians llp and xtium assurance
https://ag.ny.gov/sites/default/files/settlements-agreements/boston-children-s-health-physicians-llp-and-xtium-assurance-of-discontinuance-2026.pdf
New York Attorney General Enforcement Page
https://ag.ny.gov/press-releases
"Boston Children’s Health Physicians (BCHP), a New York-based pediatric health network, and XTIUM, an IT management company that provided network security services to BCHP"
"the companies will pay a $2.1 million penalty to New York and $540,000 to Connecticut"
"In August 2024, XTIUM suffered a breach that allowed hackers to access 18 of its clients’ networks, including BCHP’s."
"The investigation discovered that BCHP was aware of many of these failures but did not take reasonable steps to address them."
"Hackers stole the records of approximately 825,000 New York and 62,871 Connecticut residents from BCHP’s network"
"the companies must adopt a series of measures to strengthen their cybersecurity practices"
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