Form: Cost-of-Breach DisclosureSource: IBM Cost of a Data BreachFiled: 28 Apr 2026
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Filing NY-20190531-health-quest-systemsHHS OCR Breach Register, New York

Breach filing

Archived

Health Quest Systems, Inc.: 372,043 individuals, May 2019.

Health Quest Systems, Inc. reported a breach of unsecured protected health information to the HHS Office for Civil Rights on 31 May 2019. The filing records the organisation as a healthcare provider in New York and lists 372,043 individuals affected, which makes it the 20th largest of the 511 New York filings on the register and the 19th largest of the 511 filings submitted nationally in 2019. Among the 21 New York filings made in 2019 it ranks 2nd.

Individuals affected

372,043

As reported to HHS

Modelled cost (IBM 2025)

$59.5M

Upper bound, method shown

Rank in NY

20th

of 511 New York filings

Rank in 2019

19th

of 511 filings nationally

Section F.1 / The filing

As posted by HHS OCR

Every value below is the portal's own field for this filing, plus its rank within the register.

Covered entity type
Healthcare Provider
Individuals affected
372,043
Breach submission date
31 May 2019
Submission year
2019
Type of breach
Hacking/IT Incident
Location of breached information
Email
Business associate present
No
Portal status
listed in the HHS OCR breach portal archive
Rank in New York by size
20th of 511
Rank in 2019 nationally
19th of 511
New York median filing
5,338 individuals
Register id (derived)
NY-20190531-health-quest-systems

Section F.2 / In context

Where this filing sits in New York and in 2019

OCR classifies the incident as a hacking or IT incident, with the breached information held in email. Hacking/IT Incident is the type recorded on 328 of the 511 New York filings (64%) and on 61% of all filings submitted in 2019. Email appears on 23% of New York filings.

No business associate is recorded on the filing; 30% of New York filings do involve one. At 372,043 individuals the breach is 70 times the New York median filing of 5,338 and 93 times the national median of 4,000 across all 7,884 filings. It is one of 801 filings of 100,000 or more individuals.

As of 28 August 2026 the case is listed in the HHS OCR breach portal archive. OCR's closing summary of the case is reproduced in full below.

New York's breach notification statute (N.Y. Gen. Bus. Law 899-aa) requires notice to affected residents in the most expedient time possible and without unreasonable delay, no later than 30 days after discovery. Its attorney general threshold: all breaches (AG, Dept. of State, State Police). The HIPAA Breach Notification Rule ran alongside it: notice to affected individuals and to HHS without unreasonable delay and no later than 60 days after discovery, which is the clock that put this filing on the portal.

Multiplying 372,043 individuals by IBM's $160 customer-PII cost per record (Cost of a Data Breach 2025, the figure the site's calculator uses) gives a modelled $59.5M; the 2026 edition's $192 gives $71.4M. Both are modelled estimates with the method shown, not costs disclosed by Health Quest Systems, Inc.. Because the filing is above the roughly 100,000-record range in which the per-record figure is reliable, the result is an upper bound, not an estimate: fixed costs are spread across far more records at this scale.

Section F.3 / OCR closing summary

The portal's archived description, in full

Written by the Office for Civil Rights when the case was closed and reproduced verbatim from the HHS export.

The covered entity (CE), Health Quest Systems, Inc., reported that several employees were the victims of an email phishing scheme that affected the electronic protected health information (ePHI) of 372,043 individuals. The ePHI involved included names, Social Security numbers, drivers' license numbers, financial information, health insurance information lab results, medications prescribed, and other treatment information. The CE notified HHS, affected individuals, and the media. In its mitigation efforts, the CE implemented additional administrative, technical, and security safeguards to better protect its ePHI. OCR obtained assurances that the CE implemented the corrective action noted.

Section F.5 / Modelled cost

372,043 individuals through IBM's per-record figures

Modelled cost / method shown, not a disclosed cost

Upper bound

IBM 2025 customer PII, $160 per record

$59.5M

372,043 x $160

IBM 2026 customer PII, $192 per record

$71.4M

372,043 x $192

Method: individuals affected, as reported by Health Quest Systems, Inc. to HHS, multiplied by IBM's customer-PII cost per record (Cost of a Data Breach 2025 Figure 6 and the 2026 edition). No cost has been disclosed by the entity for this filing; the figure is a planning estimate, not a fact about the breach. IBM's per-record figures come from mid-volume breaches and IBM cautions against applying them to breaches involving millions of records; the site's per-record page explains where the multiplication holds and where it breaks down.

Context: IBM's average cost of a healthcare breach is $6.64M in the 2026 report ($7.42M in 2025); the global average across all sectors was $4.44M in 2025.

Cost per record: method and limits / Healthcare breach cost, IBM 2026

Section F.6 / Notification clock

New York statute and the HIPAA rule

State notification statute

New York: N.Y. Gen. Bus. Law 899-aa

amended by the SHIELD Act

Notice to individuals
In the most expedient time possible and without unreasonable delay, no later than 30 days after discovery
Attorney general threshold
All breaches (AG, Dept. of State, State Police) (Aligned with timing and content of individual notices)
Private right of action
Limited: Actual damages only; no statutory damages and no attorney-fee recovery; enforced primarily by the AG
Penalty
Greater of $5,000 or $20 per failed notification, capped at $250,000; safeguard violations up to $5,000 each

The HIPAA Breach Notification Rule runs alongside the state statute: notice to affected individuals and to HHS without unreasonable delay and no later than 60 days after discovery.

Section F.7 / Peer filings

New York filings closest in size

Neighbours by size rank among New York filings in 2019, topped up from other years where 2019 has too few. Filings of 10,000 or more link to their own page.

Covered entityTypeIndividualsSubmitted
Sunrise Medical Laboratories, Inc.Healthcare Provider401,90115 Jul 2019
CBLPath, Inc.Healthcare Provider141,95615 Jul 2019
Ivy Rehab Network, Inc. and its affiliated companiesHealthcare Provider125,00026 Nov 2019

Index / Companion schedules

Provenance

Source: U.S. Department of Health and Human Services, Office for Civil Rights, Breach Portal (breaches affecting 500 or more individuals), retrieved 2026-08-28. Public domain. Individuals affected and dates as reported by the covered entity.

Portal: ocrportal.hhs.gov breach report. Statutory basis: HITECH Act section 13402(e)(4): the Secretary must post a list of breaches of unsecured protected health information affecting 500 or more individuals. Breaches affecting fewer than 500 individuals are reported to OCR annually and are not posted, so they are not on this register. Status wording follows the portal's two tabs ("Cases Currently Under Investigation" and "Archive") as of 28 August 2026; a filing moves to the archive when OCR closes the case. Modelled costs on this site are a method applied to the reported count, using IBM Cost of a Data Breach per-record figures, and are never a cost disclosed by the entity. This row: hhs-breach-archive__2026-08-28.csv, export row 4423.

Corrections: if you represent a listed entity and the portal row has been amended, email [email protected] with the portal entry and we will re-pull the export.