Form: Cost-of-Breach DisclosureSource: IBM Cost of a Data BreachFiled: 28 Apr 2026
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Filing NC-20170915-morehead-memorial-hospitalHHS OCR Breach Register, North Carolina

Breach filing

Archived

Morehead Memorial Hospital: 66,000 individuals, Sep 2017.

Morehead Memorial Hospital reported a breach of unsecured protected health information to the HHS Office for Civil Rights on 15 September 2017. The filing records the organisation as a healthcare provider in North Carolina and lists 66,000 individuals affected, which makes it the 29th largest of the 207 North Carolina filings on the register and the 16th largest of the 358 filings submitted nationally in 2017. Among the 9 North Carolina filings made in 2017 it ranks 1st.

Individuals affected

66,000

As reported to HHS

Modelled cost (IBM 2025)

$10.6M

Method shown, not disclosed

Rank in NC

29th

of 207 North Carolina filings

Rank in 2017

16th

of 358 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
66,000
Breach submission date
15 September 2017
Submission year
2017
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 North Carolina by size
29th of 207
Rank in 2017 nationally
16th of 358
North Carolina median filing
3,679 individuals
Register id (derived)
NC-20170915-morehead-memorial-hospital

Section F.2 / In context

Where this filing sits in North Carolina and in 2017

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 130 of the 207 North Carolina filings (63%) and on 42% of all filings submitted in 2017. Email appears on 28% of North Carolina filings.

No business associate is recorded on the filing; 26% of North Carolina filings do involve one. At 66,000 individuals the breach is 18 times the North Carolina median filing of 3,679 and 17 times the national median of 4,000 across all 7,884 filings. It sits in the 10,000 to 99,999 band, which holds 1,938 filings.

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.

North Carolina's breach notification statute (N.C. Gen. Stat. 75-65) requires notice to affected residents without unreasonable delay. Its attorney general threshold: all breaches (Consumer Protection Division of the AG). 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 66,000 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 $10.6M; the 2026 edition's $192 gives $12.7M. Both are modelled estimates with the method shown, not costs disclosed by Morehead Memorial Hospital. For scale, IBM's 2026 average cost of a healthcare breach is $6.64M, so this filing models at 1.9 times the sector average.

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.

In late June 2017, employees at Morehead Memorial Hospital, the covered entity (CE), began reporting suspicious phishing emails to the information technology department. Through its contracted forensic investigator, Navigant Consulting, the CE found that two employee email accounts were compromised and protected health information (PHI) for about 66,000 individuals was exposed. The exposed PHI included treatment information, payment information, names, business reports, diagnostic information and for 1,200 individuals, their social security numbers as well. In response to the breach, the CE reset password for all employee accounts. The CE also added phishing information to employee training materials and created an internal website to improve reporting and notification of security incidents. The CE also verbally reminded employees directly involved with the compromised accounts about being vigilant and careful when email attachments. The CE provided breach notification to HHS, affected individuals, and the media, and posted substitute notice on its website. OCR obtained assurances that the CE implemented the corrective actions noted above.

In response to the breach, Morehead initiated a master password reset for all employee accounts. Supplementary information on phishing was added to employee training materials and an internal website was created for better reporting and notification of security incidents. No employees were sanctioned; however, those directly involved with the compromised accounts were verbally reminded about being vigilant and careful in opening email attachments. Morehead provided timely and compliant breach notification to HHS, the affected individuals, and prominent media outlets in the affected jurisdictions. Substitute notice was posted on Morehead's website in a timely and compliant manner as well.

Section F.5 / Modelled cost

66,000 individuals through IBM's per-record figures

Modelled cost / method shown, not a disclosed cost

Modelled

IBM 2025 customer PII, $160 per record

$10.6M

66,000 x $160

IBM 2026 customer PII, $192 per record

$12.7M

66,000 x $192

Method: individuals affected, as reported by Morehead Memorial Hospital 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

North Carolina statute and the HIPAA rule

State notification statute

North Carolina: N.C. Gen. Stat. 75-65

Identity Theft Protection Act

Notice to individuals
Without unreasonable delay
Attorney general threshold
All breaches (Consumer Protection Division of the AG) (Concurrent with consumer notification)
Private right of action
Yes: Civil action under N.C. Gen. Stat. 75-16 as an unfair and deceptive trade practice; treble damages
Penalty
Treble damages for affected individuals; AG may seek injunctive relief, penalties, and restitution

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

North Carolina filings closest in size

Neighbours by size rank among North Carolina filings in 2017, topped up from other years where 2017 has too few. Filings of 10,000 or more link to their own page.

Covered entityTypeIndividualsSubmitted
Allergy Partners, PLLCHealthcare Provider74,08323 Apr 2021
EmergeOrthoHealthcare Provider68,66125 Aug 2022
Robeson Health Care CorporationHealthcare Provider62,62721 Apr 2023
ABB, Inc.Healthcare Provider28,01211 Sep 2017
UNC Health Care SystemHealthcare Provider27,1138 Dec 2017

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 5103.

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.