how unreasonable non-disclosure of security breach by hospital reflects Hospital's role in referral to hospice?

Question

Plaintiff's records were released by hospital to hospice, misrepresenting Plaintiff's health. 
In context that unauthorized release of records represented actual fraudulent referral to hospice, how unreasonable non-disclosure of this security breach by hospital reflects Hospital's role in referral to hospice?

James L. Arrasmith · Answer

In California, a hospital's failure to disclose a security breach involving the unauthorized release of a patient's records to a hospice can significantly impact its role in the fraudulent referral. This lack of disclosure demonstrates a potential disregard for patient privacy and can be seen as a breach of trust and legal responsibility. 
 
When a hospital releases records without authorization and misrepresents a patient's health, it can lead to inappropriate and potentially harmful medical decisions, such as an unjustified hospice referral. The hospital's failure to inform the patient about this breach prevents the patient from taking timely action to correct their medical information and to seek redress for any harm caused. 
 
This unreasonable non-disclosure suggests that the hospital may have been aware of the potential consequences but chose to conceal the breach. Such behavior can be seen as complicit in the fraudulent referral, as it allows the misrepresentation to persist unchallenged, undermining the patient's right to accurate medical records and appropriate care.

Q: how unreasonable non-disclosure of security breach by hospital reflects Hospital's role in referral to hospice?